Are Aviation Services In Line For Sales Taxes? | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 03.23.15

Airborne 03.24.15

Airborne 03.25.15

Airborne 03.26.15

Airborne 03.20.15

Airborne Hi-Def On YouTube

Airborne 03.23.15

Airborne 03.24.15

Airborne 03.25.15

Airborne 03.26.15

Airborne 03.20.15

Tue, Feb 16, 2010

Are Aviation Services In Line For Sales Taxes?

As Service Economy Means Lower Sales Tax Revenue, States Look Elsewhere

It appears that the proposed aviation excise tax in Washington State is not the only juicy target for taxation by states struggling to balance their budgets. The wall Street Journal reports that some states are considering sales taxes on a number of services, including aviation.

With high unemployment and people simply not spending as much money, states, particularly those that rely almost exclusively on property and sales taxes rather than income taxes, are seeking new revenue streams to bring their budgets into balance. Many, like Florida, have a balanced budget mandate in their state constitutions. But in many of those states, a broad array of services are exempt from sales taxes, and some in the aviation community fear that everything from hot-air balloon rides to charter aircraft services might soon prove too tempting a target for lawmakers.

In La Grange, KY, hot-air balloon operator Stuart Crawford is attempting to bring together people offering aviation services to oppose that state's attempt to levy sales taxes on many "high-end" services, such as landscaping, greens fees, and transportation in charter aircraft. Democrat Jim Wayne, the proposals' sponsor, said it would simply make the tax code reflect a more service-oriented economy, and spread the tax burden over a broader base in times of financial difficulty. "We know that the economy has shifted away from the purchase of goods to services," he said.

The Wall Street Journal says that tax experts have long looked to services as a way to broaden the tax base, but more so now in that companies selling across state lines on the Internet can sometimes avoid sales taxes. "You can't get your plumbing fixed over the Internet," said Michael Mazerov, former research director of the Multistate Tax Commission.

The same would be true of your airplane.

FMI: http://revenue.ky.gov , www.mtc.gov 

Advertisement

More News

Airborne 03.25.15: HR476 Opposed, AEA2015 LIVE Schedule, Airbus' 9000th A/C

Also: Nanchang CJ-6A, USAF T-X Program, UK AAIB Withholds Info, Aussie Aero-Politics, GPS Errors Found, ATC Reform House Bill HR 476 will eliminate G.I. training benefits for those>[...]

ANN's Daily Aero-Linx (03.26.15)

Addison Pemberton's Boeing Model 40 The first Model 40 was built for a 1925 U.S. Post Office competition as a replacement for the converted military de Havillands that had carried >[...]

ANN's Daily Aero-Term (03.26.15): Few Clouds

An official sky cover classification for aviation weather observations, descriptive of a sky cover of 1/8 to 2/8.>[...]

Aero-News: Quote Of The Day (03.26.15)

“NBAA will continue to monitor the situation and pursue all available options to ensure access to and the future viability of Santa Monica airport, which is not only an impor>[...]

ANN FAQ: View Aero-News YOUR Way... The 'Headlines Only' Option

Choose How YOU Want To View Your Aero News: 'Headlines Only' Mode We're all pretty excited about the new website design here at ANN, but we HAVE heard from some of you that you lik>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC