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Wed, Nov 08, 2017

Alaska Pilots May Soon Face Additional Fees And Taxes

Governor Bill Walker (I) Has Proposed Both

Airplanes are a vital mode of transportation in Alaska. According to the Alaska Ninety-Nines, there are six times as many pilots per capita, and 16 times as many airplanes per capita, when compared to the rest of the U.S. And Governor Bill Walker (I) wants to make it more expensive to fly there.

The blog Must Read Alaska reports that Gov. Walker has proposed a state airplane registration system that would be used to create a database for instituting an airplane tax. The tax would be $150 on any private plane, single engine, twin, reciprocating or turboprop, and $250 on any commercial aircraft of any size. The Walker administration has openly called the tax a user fee.

The airplane tax would bring in between $1.3 and $1.5 million each year, according to the blog. The state is also considering a motor fuel tax that would relieve Alaskans and others operating a motor vehicle in the state of $80 million per year, and that would include an increase in aviation fuel taxes.

Money raised through the aviation fuel tax would go into the general fund and not be reserved for aviation purposes.

Interestingly, according to the blog, there are no enforcement mechanisms or penalties associated with the registration fee. The state thinks aircraft owners will line up to pay on the honor system, but there is no repercussion for simply not registering your airplane.

Commercial airlines that are based out of state will be exempt from the registration "requirement", but in-state airlines would be required to pay the tax.

The Alaska DOT says that the tax is necessary because aircraft owners should pay for their use of the aviation system in the state, and commercial interests should pay more because they use more of the services. GA and recreational pilots do not place as much of a burden on the system, according to the agency.

The proposed tax is currently open for public comment.

(Image from file)

FMI: Original Report

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