The recession has hit this country hard. Since 2008, we’ve seen housing prices collapse, major institutions declare bankruptcy, and millions lose their jobs.
With federal dollars growing scarce and the tax base shrinking, states have been looking for new revenue sources. And it should come as no surprise that they’ve been looking to general aviation to help fill in the gaps.
With that in mind, let me share a number that would be impressive in the best of times and is almost inconceivable today. The number is $0. That’s how much state taxes on GA have gone up in the past five years—zero.
In fact, in many states, taxes on general aviation have gone down. But whether we’re talking about stopping tax increases or cutting existing taxes, it doesn’t happen without the intervention of some of GA’s most effective advocates—AOPA’s state legislative affairs experts and regional managers.
So far in 2013 alone, our experts have helped cut taxes in Indiana, Maine, and Florida, among others. They’ve also helped defeat major tax proposals in Washington, Connecticut, Tennessee, Ohio, Maryland, and Massachusetts. And they’re currently hard at work on tax issues in Delaware, Pennsylvania, Michigan, and New York. Meanwhile, just a few days ago the Louisiana legislature adjourned without taking action on two GA tax bills that AOPA strongly opposed, effectively killing the measures, at least for now.
Even if you don’t fly in any of these states, every win is good news for all of us who love aviation. State lawmakers carefully monitor what’s happening elsewhere. When GA taxes succeed in one state, others try to replicate those measures. At the same time, each win makes GA look less like an easy target for other states seeking new revenue streams.
On average our experts track more than 1,000 bills each year, taking action on several hundred of those. To be effective, our team must meet with hundreds of legislators, testify before dozens of committees, walk the halls of state capitols, and be immediately available to engage with lawmakers virtually around the clock.
What kind of issues do we get involved in?
Well, in Indiana we worked with state lawmakers to write and pass legislation that caps and cuts the state tax on avgas by about 50 cents per gallon. The same law cuts the jet fuel tax by about 29 cents per gallon. To give you an idea just how significant this is, the owner of a Piper Arrow III now saves $36 on every fill up. The owner of a Cessna Citation saves more than $170. At the same time, the legislation created a sales tax exemption on parts and labor for GA aircraft maintenance. At 7 percent, that can cut the cost of major repairs by thousands of dollars.
In Ohio, the situation was a little different. The state Senate passed language that would have imposed a 6 percent tax on top of the wet rate for all GA aircraft rentals. But AOPA got to work with lawmakers to ensure that idea got no further, and a tax increase that could have cut down on flying time for renters and students never became law.
Our work in the states goes unheralded most of the time, but it is vital to the health of GA and the wallets of our members. State-imposed tax burdens, from sales and excise taxes on fuel to pilot registration fees and taxes on aircraft repairs, can far exceed what we pay in federal aviation taxes.
Regardless of where you live, we’ve got your back. But we also need your support. We know you count on us, and we count on you to stand with us as we fight to protect our freedom to fly.