From the Kokomo Tribune:
State Sen. Brandt Hershman, R-Monticello, said a new law ending the state’s sales tax on aviation fuel has helped Indiana’s aviation industry.
According to Hershman, the new law removed a 7 percent tax on aircraft parts and repairs, as well as the state’s aviation fuel excise tax.
“Prior to the enactment of the law, Indiana had the highest combined fuel tax rate in the nation,” Hershman said. “Eliminating the fuel tax can save aircraft owners 40 cents per gallon, causing more airplanes to fill their tanks at Indiana businesses.”
“Major repairs to planes can be extremely costly, and the imposition of the sales tax was creating a competitive disadvantage for Hoosier businesses in the highly mobile world of aircraft. By eliminating the sales tax on aviation repairs, Indiana joined a growing number of states that are doing the same.”
Hershman said the new law was lauded at an Aviation Operators and Pilots Association event last week, where Indianapolis-based Eagle Creek Aviation Services credited the law for a stream of new orders for the turboprop airplane it refurbishes and sells.
These include large international contracts that formerly went to other states. Another aviation facility, Hawker Beechcraft Services, announced its hiring is up 75 percent and it expects to add more new jobs in 2014.
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http://kokomotribune.com/local/x1442568669/Hershman-Aviation-fuel-tax-cut-is-helping-industry
