Massachusetts Aviation Sales Tax Exemption Continues to Fuel Economy

March 29, 2019

A new Massachusetts Statewide Airport Economic Impact Study finds that aviation activity statewide is responsible for 199,237 jobs producing a payroll of $7.2 billion, with a total economic impact of $24.7 billion, an increase of 49 percent.

“The study found that general aviation airports provide more than 5,000 jobs in the commonwealth of Massachusetts, with a total output of over $630 million,” said Scott O’Brien, NBAA senior director, government affairs. “The state’s sales tax exemption for sales of aircraft or replacement parts continues to help fuel a strong general aviation sector, and as a result of this exemption, the number of aircraft based in the state has increased.”

In the past few years, there have been efforts in the state legislature to repeal the exemption as part of flawed efforts to raise revenue. “Each year, when the repeal legislation comes up, the general and business aviation community comes together and explains the benefit of the exemption to state legislators, and this education process has been successful in maintaining the exemption,” O’Brien said.

“It is early in the legislative process this year, but the exemption repeal has been introduced again, and NBAA will monitor the situation closely,” he added.

The 30 general aviation airports in Massachusetts provide a key link to small and mid-sized businesses, connecting communities to the rest of the state, the nation and the world while creating jobs in the community.

“As the study points out, when an aircraft mechanic working at a local airport stops to buy gas or groceries, this stimulates local economic growth which can have a significant impact in smaller areas,” said Brittany Davies, NBAA Northeast regional representative.

“NBAA commends the MassDOT Aeronautics Division in updating the economic impact study and distinctly showing the unique ways aviation serves the state of Massachusetts,” she added. “Through their business-airport synergies section, the study shows a variety of different ways that business aviation can affect education, investments, public safety, and of course grow business opportunities.”

View the Massachusetts Statewide Airport Economic Impact Study.