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Thu, May 24, 2012

PA House Exempts Airplanes From Sales Tax

Measure Pending In The State Senate

The Pennsylvania House of Representatives has passed a measure that would exempt airplanes sold in the state from sales tax. Aircraft maintenance would also be sales-tax-free.

The Tuesday vote came in 179-19 in favor of the tax breaks, which supporters of the bill said would make Pennsylvania competitive with neighboring states that do not have such a tax. The Associated Press reports that opponents called the exemption a "tax break for the wealthy." The State Senate has yet to consider the measure.

While opponents said the state needs the tax income from the sale and maintenance of airplanes, the bill's backers argued that the revenue would be offset by creating good-paying jobs for workers who would then pay income taxes. It also makes PA more attractive to the aviation sector of the economy.

Helicopter sales and maintenance have been exempt from sales taxes in PA since 2009.

FMI: www.legis.state.pa.us

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