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Sat, Mar 22, 2014

GA Legislature Passes Aviation Repair Sales Tax Exemption

Out Of State Customers Would Not Be Liable For Such Taxes

The Georgia legislature has passed a measure to make permanent a temporary tax exemption that directly affects the general aviation maintenance industry.

The exemption for sales taxes on the repair and maintenance for GA airplanes had been set to expire in July. The bill, which passed the Georgia House Thursday, would make those exemptions permanent. It exempts out-of-state customers from paying sales taxes for work performed on their airplanes.

The permanent exemption had been recommended by several citizens’ commissions on job creation, according to a report from the Augusta Chronicle.

Georgia is home to such aerospace companies as Gulfstream in Brunswick and Savannah, and Standard Aero in Augusta. The industry has grown some 8 percent in Georgia over the past several years while remaining stagnant in other areas, according to a study conducted by Georgia State University. That study also estimates that making the tax exemption permanent will cost the state some $23 million next year in tax revenues. However, State Rep. Alex Atwood (R-Brunswick), one of the sponsors of the bill, said that the money would not be collected anyway because aircraft owners would simply fly their airplanes to other states where they would not have to pay a sales tax.

The bill, which was also passed by the Georgia Senate last week, is headed to Governor Nathan Deal for his signature.

FMI: http://gov.georgia.gov/

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