Senate Passes Larkin Bill To Give Tax Break On Small Aircraft
The State Senate has passed legislation (S.3655) sponsored by Senator Bill Larkin (R-C, Cornwall-on-Hudson) which would provide several sales and use tax exemptions on certain small planes purchased in New York State.
"Airports are one of the economic engines that fuels growth in the communities they serve," said Senator Larkin. "The economic benefits of airports in this state are quite large. In addition to commercial service airports, hundreds of other general aviation airports are located throughout the state. These airports provide services such as charter flights for businesses and executives, quick access for medical emergencies and law enforcement needs, flight training, and tourism & recreational flying. This bill would make New York competitive with other states that already exempt sales taxes related to aviation activities."
Senator Larkin said that Connecticut, Massachusetts, New Jersey and New Hampshire are a few of the regional states that exempt these aviation sales and use taxes. "I believe that if New York exempts the tax on the purchase of general aviation aircraft, this could encourage existing aircraft maintenance facilities to expand their operations," said Larkin. "Also, other companies would look to New York to locate or relocate their operations within this state. "Providing more aviation services right here in New York would lead to countless other business and economic benefits."
Annual economic activity attributable to the aviation industry in New York State is nearly $36 billion. Over 300,000 New York residents owe their jobs directly or indirectly to airports. These jobs pay nearly $12 billion in payroll on an annual basis. Airports and aviation industries pay over $2.7 billion in state and local taxes each year.
The bill was sent to the Assembly.