Hopes To Capture Business That Is Currently Going To Texas

The New Mexico legislature has passed a bill that would eliminate sales tax on the sale of airplanes weighing over 10,000 pounds.

The bill was sponsored by State Representative Bob Wooley (R-Roswell). It had previously passed the lower chamber, and then moved to the State Senate, where it was approved 28-8 last week.

The bill exempts aircraft sales and maintenance from sales tax, if the airplane is over 10,000 pounds gross landing weight, according to the bill. Specifically, the bill says "Receipts from the sale of or from maintaining, refurbishing, remodeling or otherwise modifying a commercial or military carrier over ten thousand pounds gross landing weight may be deducted from gross receipts."

The Santa Fe New Mexican newspaper reports that Rep. Wooley said the bill could create 150 jobs in his district, where two airplane maintenance facilities are located. The bill's supporters said that maintenance work was all going to Texas, where there was no such tax, and that "New Mexico never collects the sales tax on airplanes anyway." He said that airplane sales were regularly closed in Texas to avoid New Mexico's sales tax.

The bill is now on the desk of Governor Susana Martinez.

FMI: www.governor.state.nm.us