Tax Was Abolished In 2002

The Massachusetts legislature is considering reinstating a 6.25 percent sales tax on airplane sales, parts, and maintenance that was abolished in 2002.

Some in the current legislature are calling the tax break a "giveaway for wealthy executives with corporate jets." But the aviation industry counters that bringing back the tax would drive business to other states, and small airports would be the hardest hit.

The Gloucester Times reports that former Governor Deval Patrick had tried to reinstate the tax during the recession, but the proposal did not gain traction in the Democrat-controlled legislature. And even if the current legislature is successful in passing the tax, it could be vetoed by current Governor Charlie Baker (pictured), a Republican.

Baker spokesman Billy Pitman said the Governor does not support increasing taxes on businesses in the state, but he would "review any legislation that should it reach his desk."

Dave Dinneen, president of the Massachusetts Airport Management Association, said that the industry is supportive of spending money on education, but it should not be taken at the expense of a growing sector that supports 124,000 jobs statewide and has an $11.9 billion economic impact on the state.

While Rep. Cory Atkins, (D-Concord) said he "can't understand why this exemption has survived so long" because it is a " generous tax break for the rich, while we’re cutting every year to balance the budget," Sen. Barbara L’Italien, (D-Andover), however, said that there is a strong argument for keeping the exemption, particularly for airports near the border with states that do not charge a tax. “These airports must compete with other states for business, so we need to give them whatever competitive advantage we can,” she said. “They provide a vital service for us, and we need them to stay open.”

FMI: https://malegislature.gov