AOPA is actively supporting legislation that would remove the Jan. 1, 2015, expiration date from the sales and use tax exemption on aircraft parts. The measure is currently being reviewed by the Missouri legislature. Under Senate Bill 777 and companion House Bill 2029, the state and local sales and use tax exemption for materials, replacement parts, and equipment used for modification, replacement, repair or maintenance of aircraft, aircraft power plants, and aircraft accessories would not expire.
Eliminating the sunset on the sales tax exemption of aircraft parts allows Missouri to retain and expand long-term benefits and jobs to its residents while continuing to spur economic development, said AOPA Central Southwest Regional Manager Yasmina Platt. “The exemption increases aviation activity, generates jobs, and raises revenue for businesses,” she said. “Without it, based aircraft, out-of-state aircraft, maintenance personnel, and maintenance shops migrate to states with exemptions because their home states are not competitive and business, and therefore revenue, is lost.”
SB777 passed the state Senate Ways and Means Committee on March 6, and on March 18, the Senate floor considered the measure. HB2029 has passed the House Special Standing Committee on Small Business and House Rules Committee and will be considered on the House floor on March 20.
The Missouri Pilots Association is also supporting the bills. Tenants at the Spirit of St. Louis Airport testified at the Senate Ways and Means hearing in favor of the bill. Others in attendance included a large contingent from Kansas City International Airport, along with representatives from Lambert-St. Louis International Airport, the Missouri Chamber of Commerce, and Associated Industries of Missouri.