Facing the prospect of an expiring sales-and-use tax exemption on aircraft parts and maintenance in Virginia, national and regional aviation business and general aviation associations have begun to survey operators in the state to build data on the benefits of the policy. NBAA is working with the Greater Washington Business Aviation Association (GWBAA), AOPA, and the Virginia Aviation Business Association to measure the impact of the tax policy that took effect in 2018 but is set to expire in 2025.
This data will help the organizations better advocate for an extension, NBAA said, noting that a 2018 survey found that its members typically spent between $50,000 to $100,000 per event when they traveled outside of the commonwealth for major maintenance work.
The sales-and-use tax exemption on aircraft parts and maintenance that became effective on July 1, 2018, incentivized operators to remain in Virginia for that work, and even led to the expansion of some MRO facilities, NBAA said.
“Virginia has seen aircraft maintenance, and in particular aircraft avionics maintenance/repair facilities, open and expand in the state to support the growing industry. These facilities not only support aviation activities but also bring well-paying jobs to all parts of Virginia,” added Caleb Stitely, GWBAA president, in an NBAA article on the issue. “With the neighboring state of North Carolina already having this exemption, and Maryland recently extending their tax exemptions through 2030, we support and encourage the commonwealth of Virginia to follow suit.”
“We know from data produced by other states with similar sales-and-use tax exemptions on aircraft parts and maintenance that the exemptions attract aircraft owners and operators for major maintenance activities and even bring in new or expanded MRO facilities,” said Greg Voos, NBAA’s regional director for the Southeast region. “NBAA strongly encourages the Virginia legislature to extend and eventually make permanent this important economic driver to the state’s aviation industry.”
Operators in Virginia wishing to participate can reach out to Voos at [email protected].