Saturday, September 21, 2013

IBJ Reports Pilots Heap Praise on State Lawmakers for New Tax Breaks

From the Indianapolis Business News:

Indiana aviators are still celebrating two tax breaks created in the 2013 legislative session, one eliminating a sales tax on parts and repairs and a restructuring of the fuel tax that translates to hundreds in savings per fill-up.

The Aircraft Owners and Pilots Association recently gave its highest honor, the Presidential Citation, to House Speaker Brian Bosma, R-Indianapolis, and Sen. Brandt Hershman, R-Lafayette, who is also a pilot. The two lawmakers were instrumental in passing the tax changes, which AOPA hopes to replicate in other states.

Indiana is home to 6,618 AOPA members and 12,451 active pilots, but according to the lobbying group, even Hoosiers were taking their business to surrounding states with lower taxes.

The new law eliminates state sales tax on jet fuel and aviation gas and replaces it with a fixed excise tax of 10 cents per gallon. The net savings is 50 cents per gallon on aviation gas and 30 cents per gallon on jet fuel, or more than $100 if filling up a Beech Baron and $220 on a King Air 200, according to Aviation International News.

http://www.ibj.com/article?articleId=43634