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Wed, Mar 05, 2014

Kansas Legislature Considers Bill Exempting Tax On Homebuilts

Committee Hass Approved The Measure, Full House Vote Expected Soon

EAA is encouraging all Kansas EAA members to contact their state representatives and request support for H.B. 2542, which would exempt homebuilt aircraft from annual property tax assessment in the state. The bill recently passed through the House Committee on Taxation and will soon go to a vote on the House floor. If the bill passes the House, it will then move to the Senate for a vote.

Homebuilt aircraft owners in Kansas are at a financial disadvantage in comparison to other aircraft owners. Currently, Kansas state law exempts "business aircraft" and aircraft older than 30 years from property tax. Because the average age of the GA fleet is older than 30 years - and newer, more expensive aircraft are most often owned by businesses - Kansan homebuilders find themselves in the uncomfortable position of being amongst the very few in the state paying property taxes to own an aircraft.
 
"The rate of taxation varies from county to county, but some EAA members have told us that they are taxed at a rate of 4.5 percent of the aircraft's value every year," said Jonathan Harger, EAA government advocacy specialist. "That means a Sonex builder/owner with an aircraft worth $30,000 must pay $1,350 every year in property tax, while a pilot who owns a 1980 model Baron worth $150,000 pays nothing. This legislation seeks to correct that inequality."

While there is not yet a date scheduled for the bill to go to a vote on the House floor, EAA expects a vote within two weeks.

(Sonex pictured in file photo)

FMI: Kansas House Members

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