Virginia has become the latest state to move forward with bills to foster aviation activity, approving a measure to exempt aircraft parts and maintenance from sales and use tax. The Virginia state Senate on February 16 passed HB1738, following House passage on February 7. The measure awaits the signature of Gov. Terry McAuliffe, who has until March 27 to take action.
NBAA, which worked with AOPA and the Virginia Aviation Business Association to push for the measure, welcomed its passage, saying it will accelerate growth of the maintenance, repair and overhaul sector.
“Virginia is home to a lot of business aircraft, but has no major MRO facilities,” said Greg Voos, NBAA’s Southeast regional representative. “Many operators go out of the state for maintenance and, as a result, the commonwealth is losing millions of dollars in economic activity every year. This exemption is the first step to make Virginia more attractive for repair shops to set up and expand.”
NBAA has nearly 300 member companies located in Virginia, and recently surveyed those customers about their maintenance activities, finding that most companies travel out of the state for major maintenance work, the association said. Those companies said they would consider keeping that work in Virginia if a qualified MRO was available, NBAA added.
The tax exemption takes effect in 2018 and sunsets in 2020. NBAA said it would continue to work to make the exemption permanent. The bill includes both manned and unmanned systems. In recent years, such initiatives have surfaced—or passed—in Texas, Washington, New York, Idaho, Maryland, Kentucky, Louisiana, Wisconsin and Arizona, among others.
“Five years ago, we were fighting off more bills than we were promoting,” NBAA director of regional programs Steve Hadley said recently of the association’s efforts. He noted times when cash-strapped states looked to aviation to raise revenue.
But, NBAA noted, through years of advocacy, the political climate has changed, and state legislatures are now recognizing the benefits of fostering aviation activity.
