News from MAMA - Gov. Patrick proposing repeal of aircraft sales tax exemption

George Clark writes: … Gregg Andrews forwarded a note from the Mass. Airport Management Association, which is included behind the "read more..."

MAMA worked hard to establish the Aircraft and Aircraft Parts sales tax exemption. This helps bring in Aviation business that might otherwise go to neighboring states. The details and a press release from MAMA are found behind the "read more… " link. But for a quick summary, MAMA is working to gather information on the positive impact of the tax exemption, and is asking everyone to contact your legislators to let them know your thoughts on the exemption.

for a copy of the letter to MAMA members, and the MAMA press release.

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To the MAMA membership:

By now, all of you know that Governor Patrick's office is proposing to repeal an exemption on the sales tax of aircraft and aircraft parts in Massachusetts. Already, from various members of the state legislature (see Rep. Humason press release, below), this proposal has been met with opposition.

It was not too long ago that MAMA put forth a tremendous effort to support the authoring and introduction of this sales tax exemption bill. And thanks to people like Rep. Cele Hahn and Sen. Mike Knapik, this bill was subsequently passed into law, with the aviation industry and state economy being the beneficiaries. So I know I speak for MAMA when I say that this latest action by the Governor's office is poorly guided and requires a "re-set" on the facts. With this in mind, from each MAMA member, I have two requests:

1. After soliciting your FBOs and dealers, please cooperate as soon as possible with the MAC, by providing to Lorraine Bohannon all current (2006-2007) data concerning aircraft sales, as well as sales on aircraft maintenance parts and maintenance. This data will augment that which was gathered in MAC's 2005 survey.
   
2. Please contact your individual legislators as soon as possible and make them understand how maintaining the sales tax exemption on aircraft and aircraft parts has created for Massachusetts a competitive balance with neighboring states like New Hampshire and Connecticut; and how the sales tax exemption has, in fact, generated more aviation activity in the state, meaning more jobs and more revenue.

Thanks.

Russ Maguire, President

MAMA

And the Press Release

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FOR IMMEDIATE RELEASE

January 24, 2008

Contact Rep. Don Humason, Jr., cell (413) 204-4917

REP. HUMASON CRITICAL OF GOVERNOR’S BUDGET;

SAYS OUTSIDE SECTION 17 WILL HURT BARNES AIRPORT, COST STATE JOBS

Don Humason, Westfield’s State Representative, criticized the Patrick Administration for their proposal to repeal an exemption on sales tax of airplanes and airplane parts.

“I was reviewing Governor Patrick’s House 2 budget for FY 2009 when I came upon outside section 17 that would undo what my predecessor, Representative Cele Hahn, and Senator Mike Knapik worked so hard to pass seven years ago in Ch. 177, Section 19 & 19A, Acts of 2001,” Humason said.

Humason, who co-chairs the Legislature’s Aviation Caucus with Marlborough Representative Steve LeDuc, represents Barnes Municipal Airport in Westfield. He also serves on the Transportation Committee.

“Airports like Barnes, Westover, and the nearly 38 public and private-public-use airports across the state were losing the extremely mobile aircraft industry and general aviation business left and right until this exemption on aircraft and aircraft sales taxes was passed,” Humason said. “Then, Fixed Base Operators (FBO’s) and businesses that catered to pilots and aviation related industries began to flourish in Massachusetts.” He points to the growth and expansion of businesses at or around Barnes Airport, like Gary Potts’ Airflyte, Inc. or Five Star Jet Center as an example.

He continued, “To a pilot, Massachusetts is a pretty small state. If our tax policies create a disincentive to buy aircraft or aircraft parts here, pilots will just fly over the Bay State and go to any one of our nearby neighboring states to do business. And they take the revenue and jobs with them.”

“Governor Patrick claims his administration is focused on economic development for the state and job growth. Well, this outside section in his budget will repeal a tool that has proven to be successful to bringing new jobs, high-paying, skilled jobs to Westfield and the Commonwealth.”

Humason pledged to work to help educate the new governor and his staff about the economic damage this section could do if passed; and he indicated he would work with House budget writers to make sure that section would not be in the House version of the FY ’09 budget.

He will enlist the assistance of Senator Mike Knapik, Barnes Airport Manager Christopher Willenborg, the WMass Economic Development Council, the Massachusetts Airport Managers Association, and the Massachusetts Aeronautics Commission.

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-- GeorgeClark - 07 Feb 2008