Washington, DC, April 1, 2015 – The National Business Aviation Association (NBAA) today welcomed passage of significant aviation tax reform that will bring jobs and economic development to New York state. Through the budget process, the state Senate and Assembly passed a measure that will exempt general aviation aircraft from the state’s sales and use tax.
Now that this portion of the budget has passed both houses, it awaits the signature of Gov. Andrew Cuomo, who is expected to sign this and additional budget bills in the coming days. In addition, at the urging of NBAA and other business groups, the legislature removed language from the budget that would have placed onerous requirements on leasing structures used by aircraft owners and other businesses.
New York state Sen. Philip Boyle and Assemblywoman Donna Lupardo, co-chairs of the New York Legislative Aviation Caucus, led the effort to reform the state’s aviation tax policies to make them more competitive with neighboring jurisdictions. The bi-partisan aviation caucus has more than 115 members, which demonstrates the legislature’s commitment to the industry in New York. In addition, over 200 NBAA members based in New York have expressed their support for aviation tax reform.
Once signed by the governor, the budget agreement will exempt from New York sales and use tax, sales of general aviation aircraft, and machinery or equipment that is installed on those aircraft beginning on Sept. 1, 2015. The measure defines a general aviation aircraft as any aircraft used in civil aviation that is not a commercial aircraft.
According to the New York Department of Transportation, general aviation airports already provide an economic impact of $1.06 billion to the state. “NBAA applauds the leadership of Senate Majority Leader Skelos, Assembly Speaker Heastie, Senator Boyle, Assemblywoman Lupardo and other members of the legislature for their continued commitment to reforming aviation tax policy in New York,” said NBAA President and CEO Ed Bolen. “When other states around the country have implemented similar tax policies, we have seen rapid growth in based aircraft, maintenance activity and aircraft sales, which will all produce jobs across New York.”
“With surrounding states already offering similar exemptions for general aviation aircraft, New York was not competitive and the legislature recognized how enactment of this exemption will bring jobs and new business to the state,” said Michael Giardino, president of the New York Aviation Management Association. “New York is now in a position to attract additional business aircraft to the state which are proven to generate high paying jobs.”
“Seeking passage of these tax reforms has been a multi-year effort involving all segments of the general aviation community in New York working together to convey how we bring jobs and economic activity to the state,” said Robert Tanner, vice president of corporate and government affairs for NetJets. “We are committed to New York and enactment of this exemption will allow NetJets and other companies to continue our growth in all corners of the state.”