With Virginia's hard-won exemption on aircraft maintenance sales and use tax set to expire, AOPA is once again working with the Virginia Aviation Business Association to marshal support for a permanent exemption to keep the commonwealth competitive.
The exemption passed in 2017 took effect in July 2018 and has kept Virginia on an equal footing with surrounding states that enacted similar exemptions. AOPA again worked with VABA to overcome legislative opposition to extending the exemption in 2022, though with an arbitrary weight restriction inserted that applied the exemption only to aircraft that weigh more than 2,400 pounds.
Virginia aircraft owners and pilots are asked to complete an online survey as soon as possible. The confidential data (subject to nondisclosure agreement) will be used to equip advocates with a report on the tax exemption's benefits to constituents and businesses that will help inform new legislation to be proposed ahead of the exemption's current expiration on July 1. Allowing that exemption to expire would put the state's maintenance providers at a disadvantage against competitors in Maryland (which recently extended its own exemption to 2030), as well as West Virginia and Pennsylvania, which also exempt aircraft maintenance from sales and use taxes.
“Targeted sales tax exemptions are an important tool to help state aviation systems remain competitive among regional peers,” said AOPA Eastern Regional Manager Sean Collins. “AOPA appreciates the legislature’s actions to retain the partial exemption and moving forward to cover all aircraft will send a clear signal that Virginia is fully on board to remain competitive and supportive of growing the state’s aviation industry.”
Once that legislation is drafted, Virginia pilots will also be asked to contact their state legislators directly to support making the exemption permanent. AOPA has backed dozens of similar tax exemptions across the country, reducing the cost of aircraft ownership and maintaining critical services.