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Wednesday, 24 March, 2010

Washington State Excise Tax Removed - New Tax Proposed For Aircraft

WASHINGTON STATE EXCISE TAX REMOVED – NEW TAX PROPOSED FOR AIRCRAFT

March 24, 2010

What’s at Issue
NATA, along with general aviation (GA) industry groups including the National Business Aviation Association, reached out to members in the state of Washington last month about a bill being considered by the Washington State House of Representatives.  The bill had intended to increase dramatically the annual tax on aircraft linked to the state.  While that effort was defeated, a new House proposal has arisen that would institute an onerous tax based on a complicated chart of aircraft types and manufacture dates.  The tax proposal could increase the tax paid by aircraft owners on some newer and heavier GA aircraft in the state of Washington.

 

Why It’s Important
The new tax proposal would determine the annual tax by aircraft type, whether single-engine fixed-wing, multi-engine fixed-wing, or turboprop, with much lower assessments for aircraft manufactured in 1970 or before.  In its application, the new proposal would require owners of less valuable aircraft to subsidize the costs for operators of the very high-end aircraft because of the complicated chart of aircraft types and manufacturing dates determining the cost value of aircraft.  For example, the owner of a $45,000,000 Gulfstream 550, who would have paid $225,000 in annual excise taxes under the old proposal, would now pay $45,000 under this current proposal.  That relief would be possible because the owner of a $1,000,000 Lear 35, who would have paid $5,000 under the old proposal, would pay $18,000 under the new one.

What to Do
NATA urges its members who have an interest in the state of Washington to respond to this call to action immediately!  Contact the governor's office and elected representatives in the state of Washington to voice your opposition to this tax proposal.

To contact Washington House of Representatives, please click here.

To contact the Washington State House Committee on Finance, please click here.

To contact your Washington State Legislators, please click here.

To contact the Office of Governor Gregoire, please click here.

NATA Position
A tax proposal of this magnitude exemplifies the lack of understanding of the aviation industry in Washington State and disregards the important contribution GA plays in the state's economy.  In addition, the tax would negatively affect airports, pilots and aviation businesses in the state.

Status
The Washington State Legislature continues debating revenue proposals this week as a special session is currently taking place at Governor Gregoire’s request. 

ACT NOW, time is limited!

Staff Contact:  Kristen Moore
Director, Legislative Affairs
kmoore@nata.aero

Click here to view in PDF format.

For general press inquiries, contact Shannon Chambers at 703-298-1347 or schambers@nata.aero

The National Air Transportation Association (NATA) has been the voice of aviation business for over 75 years. Representing nearly 2,300 aviation businesses, NATA’s member companies provide a broad range of services to general aviation, the airlines and the military and NATA serves as the public policy group representing the interests of aviation businesses before Congress and the federal agencies.