The New York state legislature agreed to exempt general aviation aircraft from the state’s sales and use tax in a move that aviation groups say will spur jobs and economic development in the state. The exemption, included in a state budget package that passed both the Senate and Assembly last week, was spearheaded by the New York Legislative Aviation Caucus.
NBAA said more than 200 of its members based in New York also expressed their support for the measure, which exempts general aviation aircraft, as well as machinery or equipment installed on those aircraft, from the sales and use tax beginning September 1. AOPA noted that the state’s tax structure, including the sales and use tax, had pushed operators to purchase and house aircraft outside of New York. The association estimates that the state has lost nearly 700 based aircraft since 2002 due to the tax.
“When other states around the country have implemented similar tax policies, we have seen rapid growth in based aircraft, maintenance activity and aircraft sales,” said NBAA president and CEO Ed Bolen, adding that the measure will “produce jobs across New York.”