Group says Aviation Tax is Hurting Illinois
During the first meeting of its kind, The Chicago Area Business
Aviation Association (CABAA) invited several political officials
from the State of Illinois to attend their October 21st meeting
held in West Chicago / Dupage Airport (DPA) at a corporate hangar
located on the field.
Ed Green, vice president and general manager of the
Springfield-based Garrett Aviation Service Centers, gave a
presentation which urged lawmakers to abolish state aviation sales
tax including that on aviation maintenance and explained how the
current tax code is hurting Illinois. “You have a mobile
product”, Green said, “they can go anywhere to get
maintenance done”.
Under the current 7%
sales tax, an aircraft using an Illinois repair station for major
maintenance items such as engine overhaul or phase checks, could
easily see upwards of $15,000 in additional expense due to the tax.
The same is true for aircraft purchases which would add an even
higher amount to the bottom line, which in turn prompts
corporations and individuals to go elsewhere to purchase their
aircraft.
Green then went on to show the group several examples of
corporate flight departments who have located elsewhere to avoid
the tax, thus costing Illinois jobs and commerce, not to mention
the added value of having a major corporation headquartered in the
state.
Prior to Green’s presentation, CABAA asked several of the
politicians in the audience to introduce themselves. Dr. Susan
Shea, Director for the Illinois Department of Transportation,
Division of Aeronautics, took the podium with a brief introduction
of her background and area of responsibilities, including that of
dispersing federal dollars to Illinois airports for maintenance and
modernization. She expressed a sincere interest in hearing from any
of the 75 attendees concerning issues she could take to capitol
hill or if they had a “wish list” of upgrades
they’d like to see at their local airports.
Then Senator Steven Rauschenberger (R-Elgin) who is also a 2006
GOP Illinois Gubernatorial Candidate, said a few words and showed
his support of general aviation. During his address, Rauschenberger
denounced the midnight destruction of Chicago’s Meigs Field
calling Mayor Richard Daley’s actions “irresponsible
politics” which earned him resounding applause. His message
also conveyed the importance of patience and persistence when
championing new legislation or opposing potential new restrictions
with regards to aviation and aerospace in Illinois.
CABAA’s
President, Rick Milburn felt the meeting was a huge success stating
that their progress was “a giant step forward in establishing
a mutually beneficial interface between our members and Illinois
officials and policymakers”. With several major corporate
flight department managers and airport directors in attendance, the
consensus echoed Milburn’s thoughts and CABAA members are
looking forward to future meetings of it’s kind.
The Chicago Area Business Aviation Association is a nonprofit
organization created to provide an interface among aviation
professionals and the policymakers and officials whose decisions
effect the operations of their membership. Members meet once a
month to discuss association business, observe progress within the
different subcommittees, and learn valuable information through
educational presentations in various aviation disciplines.