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NBAA Announces Repeal of Rhode Island Aircraft Sales and Use TaxesContact: Cassandra Bosco
Washington, DC, July 7, 2004 – Rhode Island Governor Donald L. Carcieri signed legislation on July 5, 2004, to repeal aircraft sales and use taxes. The repeal, effective January 1, 2005, exempts the sale, storage, use or other consumption of new or used aircraft and aircraft parts from taxation. Labor charges continue to be exempt where labor charges are separately stated by the seller.
Signing of the legislation concludes more than one year of work by a coalition of general aviation organizations, led by National Business Aviation Association (NBAA) Regional Representative Dean Saucier and NBAA Tax Committee member Ed Kammerer of Edwards & Angell, LLP. The coalition included NBAA, the Rhode Island Aviation Association, AOPA, the Rhode Island Pilots Association and several local pilots' organizations.
This tax repeal legislation became a priority in Rhode Island as a result of a series of ambiguous legal rulings that allowed the aircraft sales and use tax to be applied to non-resident companies. Neighboring states Connecticut and Massachusetts also exempt aircraft from sales and use taxes.
"Aircraft operations require significant support from ground services and personnel, thus creating substantial economic benefit to the states and localities," said Mike Nichols, NBAA manager, tax & finance issues. "Rhode Island will now be on par with its neighboring states providing equitable tax treatment of aircraft. We expect this will translate into additional jobs for the residents of Rhode Island."
For more information about state aviation taxes, contact Nichols at (202) 783-9254 or [email protected], or visit www.nbaa.org/taxes.
NBAA represents the aviation interests of more than 7,600 companies that own or operate general aviation aircraft as an aid to the conduct of their business, or are involved with business aviation. NBAA Member Companies earn annual revenues approaching $5 trillion a number that is about half the gross domestic product and employ more than 19 million people worldwide. The NBAA Annual Meeting & Convention is the world's largest display of civil aviation products and services.
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