AOPA Helps Avert Costly Change In California Tax On Aircraft

The California State Senate has let die a bill that could have cost aircraft owners in that state a lot of money. The measure, known as AB 694 and opposed by AOPA, would have extended the sales tax application limit from 90 days to a full year. That affects people who buy aircraft out-of-state and later bring them into California.

"We worked closely with the California Pilots Association, the Cessna Pilots Association, and a number of other organizations to fight the bill," said AOPA President Phil Boyer.

"The California sales tax, which is among the highest in the country, adds significantly to the true cost of owning an aircraft. The defeat of AB 694 reduces the cost for some owners."

Under current state law, California can collect sales tax on any car, boat, or aircraft purchased out of state by a California resident and brought into the state within 90 days of its purchase.

AB 694 would have extended the time limit to one year

The bill passed the state assembly in a last-minute flurry of activity before the legislature adjourned but failed to win support in the state senate.

The bill could be reintroduced when the new session of the legislature convenes, but the bill's sponsors concede that given the level of opposition in the just-concluded session, it would face stiff headwinds.

FMI: www.aopa.org