Winning in the States

June 25, 2013 by Craig Fuller

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.

2 Responses to “Winning in the States”

  1. ron heidebrink Says:

    AOPA I am trying to eliminate airplane taxes here in Horry county Couth Carolina. It would help if I could see all the articles pertaining to taxes that have been lowered and the reason why.
    Adding a CATAGORY on taxes will help.
    Sincerely

  2. Marc Whisman Says:

    I’ve called the AOPA about the tax mess here in Southern California and got no response. If you keep your aircraft in Los Angeles County, you pay property tax PLUS a “voted indebtedness” on Schools, the water district etc. I was told that this goes to cover bonds that were issued by the City, yet it’s being assessed County wide, even if you didn’t get a chance to vote on the bonds for L.A. City.

    Furthermore, the tax assessor has RAISED the assessed value of out 172 twice in the last 4 years – in spite of the fact that the airplane ages and has over 100 hours added to the tach each year!

    The AOPA needs to do more to encourage private ownership by fighting these strong-arm tactics by the tax collectors to finance the economic downturn on the shoulders of general aviation.

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