In the latest effort to preserve the Massachusetts sales tax exemption on aircraft and parts, representatives of four trade associations testified last week before the state’s Senate Joint Committee on Revenue. Appearing before the committee were members of the Massachusetts Airport Management Association (MAMA), Massachusetts Business Aviation Association (MBAA), NBAA, and AOPA.
Introduced last year by assistant majority leader for the Massachusetts Senate Michael Barrett, bill S-1797 would repeal the 16-year-old sales tax exemption. Sen. Barrett’s district includes Hanscom Field, a major business aviation airport in the state and a reliever facility for Boston Logan.
Testimony followed a written statement to the Joint Committee from MAMA, which stated, “A repeal of the sales tax exemption on aircraft and components would be devastating to our aviation industry by forcing Massachusetts-based flight departments and aviation-related companies to move to bordering states in New England that do not levy a sales tax on aircraft.”
MAMA also noted, “The current tax exemption on aircraft sales and components does not favor the owners of the aircraft, as some would argue. It is about protecting the thousands of Massachusetts citizens with aviation jobs as a result of being competitive with our bordering New England states.”