Since the Connecticut exemption on aircraft repairs and parts is based on being competitive on neighboring states, this could eventually affect Connecticut too.
This came from the Massachusetts Airport Managers Association (MAMA)
Governor’s Proposal to Repeal Exemption on Sales Tax
To the MAMA membership:
By now, all of you know that Governor Patrick’s office is proposing to repeal an exemption on the sales tax of aircraft and aircraft parts in Massachusetts. Already, from various members of the state legislature (see Rep. Humason press release, below), this proposal has been met with opposition.
It was not too long ago that MAMA put forth a tremendous effort to support the authoring and introduction of this sales tax exemption bill. And thanks to people like Rep. Cele Hahn and Sen. Mike Knapik, this bill was subsequently passed into law, with the aviation industry and state economy being the beneficiaries. So I know I speak for MAMA when I say that this latest action by the Governor’s office is poorly guided and requires a “re-set” on the facts. With this in mind, from each MAMA member, I have two requests:
1) After soliciting your FBOs and dealers, please cooperate as soon as possible with the MAC, by providing to Lorraine Bohannon all current (2006-2007) data concerning aircraft sales, as well as sales on aircraft maintenance parts and maintenance. This data will augment that which was gathered in MAC’s 2005 survey.
2) Please contact your individual legislators as soon as possible and make them understand how maintaining the sales tax exemption on aircraft and aircraft parts has created for Massachusetts a competitive balance with neighboring states like New Hampshire and Connecticut; and how the sales tax exemption has, in fact, generated more aviation activity in the state, meaning more jobs and more revenue.
Russ Maguire, President