Pols Fear Losing Tax Money, But Not Future Business

The West Virginia Legislature voted down a measure that would have eliminated or reduced property taxes on out-of-state airplanes that are housed at airports within the state. The measure died from issues in the House of Delegates.

"Sen. (Truman) Chafin introduced the bill and it made it through the Senate but when it got to the House a lot of things happened to it and it didn't go any further," said Cindy Pyles, Potomac Highlands Airport Authority Chairwoman. The Authority operates the bi-state Greater Cumberland Regional Airport.

People learned it is a problem in trying to bring business to the state, Pyles said. This raised some questions, according to West Virginia's Cumberland Times-News.

"Are we open for business or not?" she said, using the slogan chosen by Gov. Joe Manchin to promote the state.

Airport manager Terry Malone lobbied for this bill's passage for most of the latter part of the session.

"We are really losing business to the border states that don't tax out-of-state aircraft," he said.

There are 30 jets based in the state and there are 45 based across the Pennsylvania border at Allegheny Airport, Malone said.

Malone said pols are "concerned about the loss of property tax revenue" but don't seem to realize there is a bigger loss from potential business revenue because of the tax.

Kelly-Springfield Tire Co. has headquarters in Cumberland, but keeps its air fleet in Ohio to avoid the tax. Savings are said to be thousands of dollars each year according to Authority member Lee Fiedler.

Fielder also said there is a company that "wants to come to the Cumberland airport and build a hangar to house its aircraft, but because of a potential annual $1.2 million in taxes, the company has opted out." He said such a deal would bring in $42,000 in real estate taxes alone.

"When the 5,000-foot runway at the Garrett County Airport is completed, we are likely to lose some (business) to it as well," said authority member Dave Summerfield.

Mineral County collected about $49,000 in taxes on personal property at the airport last year, according to Malone, but it was a single airplane that accounted for $39,000 of those taxes. The owner is planning to move it because of the tax, he said.

Malone also cites a pilot who currently houses his aircraft in Leesburg, VA rather than at his local airport. He'd rather pay $35 for a Virginia license than $5,000 in personal property taxes in Cumberland.

The airport authority plans to continue lobbying efforts next year, Pyles said.

FMI: www.cumberlandairport.com