"Unified Mobilization Made the Difference," Association
Says
The NBAA on Wednesday applauded the Washington State
legislature's recent decision to set aside an onerous tax proposal
for aircraft, which had been debated for possible inclusion in the
state's annual spending package.
Final passage of the spending bill - which was approved without the
tax on Monday - came near the end of a special legislative session
called by Governor Chris Gregoire after the legislature's regular
session expired at the end of March.
In welcoming the development, NBAA President and CEO Ed Bolen
said: "We have long said that when our industry collectively makes
its voice heard, we can help shape policies that impact the
business aviation community. We applaud the many NBAA Members and
took the critical step of contacting their elected representatives
- that unified mobilization was critical to a positive
outcome."
The tax proposal was offered by Washington state lawmakers as a
means to address a shortfall in annual revenues to fund state
programs. Facing a budget deficit, legislators had alternately
proposed either a 0.5-percent tax on all aircraft (raising the
existing aircraft registration fee by as much as 1,400 percent), or
an equally onerous taxation method based on a complicated chart of
aircraft types and manufacture dates.
Ed Bolen
To oppose the tax hike, NBAA and its Members banded with others
in a unified grassroots coalition, known as the Washington Aviation
Coalition (WAC). The WAC included the Pacific Northwest Business
Aviation Association (PNBAA), Members of the Aircraft Owners and
Pilots Association, the Washington Pilots Association and
others.
The coalition presented state policymakers with a unified
message based on a central fact: General aviation, including
business aviation, is a major economic driver in the State of
Washington, supporting 178,375 jobs and producing $140,774,869 in
wages. Either of the tax-hike proposals would likely decrease tax
revenues and drive business out of the state.
"Legislators didn't have a clear understanding of the true
economic impact of aviation in the state of Washington," said PNBAA
Board Chairman Jim Bennett. "FBOs wouldn't sell enough fuel, so
their margins would get thinner and thinner. Airports that would be
impacted by those airplanes that moved to another state. Clearly,
the impact was greater than the legislators had anticipated."
Bennett's fellow PNBAA Board Member, Chuck Kegley, agreed: "One
voice, one message was the single driving premise for our group,"
he said. "Jobs, jobs, jobs. Aviation contributes immensely to the
local and regional tax bases already, and any additional burden of
a new tax may be enough to push these operators and aircraft owners
to consider cheaper options, outside the state of Washington."
WAC Chair Ryan Zulauf echoed Kegley's assessment: ""We pooled
our resources in the effort to defeat the aircraft excise tax, he
said. "This is the first time we've ever done that, and it was
really effective."
NBAA and its Member representatives supported the coalition's
work by attending meetings with lawmakers to outline concerns,
providing testimony at legislative committee hearings on the issue,
and sending multiple "Call to Action" messages to NBAA Members to
ask them to make their voices heard on the matter.
"We're thrilled that the legislators in the State of Washington
recognized the value of business aviation in the state," NBAA
Representative Ivey said following Monday's developments. "Our
Members' calls, emails and letters made an impact."