Pilots fueling up general aviation aircraft in Indiana can expect to see savings of $100, $250, or more each time they taxi to the pumps now that lawmakers have passed an AOPA-backed package of aviation tax exemptions and restructurings. The joy also will extend to lower sales-tax line items on their aircraft maintenance bills—and that should provide a shot in the arm to the state’s aviation industry and even rid Indiana of a reputation for imposing the highest fuel taxes in the nation, AOPA said.
The new measure should achieve all that by removing the state sales tax on 100LL and jet fuel and by restructuring the previous excise tax on aviation fuel to a fixed total state tax rate.
Based on current avgas prices, that lowers the current total state fuel tax of $0.60 per gallon to a firm excise tax of $0.10 per gallon.
The change will save owners upward of $100 or more per fill-up of a piston twin such as a Beechcraft Baron. It means savings of more than $220 per fill-up for a Beechcraft King Air 200 and even more for larger fuel capacity aircraft—in all cases amounting to thousands in annual savings, especially significant for high-flight-time aircraft.
A flight school with a single training aircraft that flies daily could realize estimated savings of more than $40,000 a year, multiplied for each aircraft utilized in a fleet.
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"This means more jobs for Hoosiers as well as future leadership in the aviation and logistics industry,” Hershman said in a statement. “We want Indiana to remain competitive on all economic fronts and this bill will help achieve this goal by vaulting us from worst in the nation for aviation fuel taxes to among the best. I’m happy to have worked so closely with AOPA and local industry partners on final passage of this measure helping all aspects of the Indiana economy.”
http://m.aopa.org/advocacy/articles/2013/130426pain-less-at-the-pump.html?CMP=ADV%3A1
