Charlotte's Regional Airports Battle For Corporate Traffic

Municipal airports in the Charlotte (NC) region are locked in a fierce battle to draw in business aviation traffic. For the municipalities, the fight is well worth it. At stake are tens of thousands of dollars in property taxes levied upon corporate jets and potentially millions more in additional revenue generated by the companies that own them. As one would expect, city officials welcome the larger corporate flight departments with open arms.

"We're trying to attract corporate users because they bring jobs and investment for the area," Jim Hurd, chairman of the Statesville Airport Commission told the Charlotte Business Journal.

Lowe's Cos. Inc., which has moved its headquarters to Mooresville from Wilkesboro, decided to base its five corporate aircraft at Statesville Municipal Airport, choosing it over Concord Regional Airport. That decision has translated into an estimated $100 million increase in the Statesville and Iredell County tax base. The company's decision to base its aircraft in Statesville has prompted a frenzy of activity, with the north Iredell city planning $14 million worth of improvements to its airport. Plans include a runway extension that will enable the largest corporate jets to take off with a full load of fuel. In addition, the FAA, which will pay 95 percent of the improvement costs, is scheduled to install an instrument-landing system at the airport this year.

Sister states are taking note and making their won taxing moves. Under South Carolina legislation enacted in January, York County has reduced its property tax levy on airplanes by 62 percent in a bid to attract more corporate aircraft to the Rock Hill-York County Airport. Officials says their state's property tax rate for corporate aircraft has long been higher than North Carolina's, putting the Palmetto State at a competitive disadvantage.

Until the new SC law took effect, the local property tax on a $5 million jet based at Rock Hill-York County Airport was $185,000 per year. The annual tax on a comparable plane at Monroe Regional Airport is $55,000, and in Statesville it's $40,000. Under the new SC tax rate, however, this year's tax bill on that aircraft in Rock Hill will drop to $70,500.

FMI: www.ncdot.org/transit/aviation