The South Dakota Legislature has passed and forwarded to Gov. Dennis Daugaard for signing a bill providing relief from double taxation for aircraft homebuilders.
Senate Bill 80, which was introduced in January, provides a tax credit for sales and/or use taxes assessed on a homebuilt aircraft’s individual components, once the original aircraft registration fee is paid. Following Senate approval, the measure won unanimous passage in the state House of Representatives on Feb. 12.
AOPA actively advocated for the bill on behalf of more than 1,400 AOPA members in South Dakota. The association pointed out in a letter that numerous homebuilt aircraft are subject to double taxation as a result of taxation of components, placing at risk the vibrancy of the aircraft homebuilding industry in South Dakota.
The newly passed measure represents a major step toward creating a fair and equitable tax structure for the state’s general aviation pilots, whose activity generates $300 million to the state economy, said Bryan Budds, AOPA Great Lakes regional manager, in the letter to state Sen. Ernie Otten (R-District 6), chair of the Taxation Committee, during review of the bill.
AOPA expressed its appreciation to Chief Sponsor Sen, Bob Ewing (R-Dist. 31) and the committee chairmen for taking quick action on Senate Bill 80.
