Ohio governor approves tax exemption for aircraft repairs
Tuesday, June 24, 2008
Gov. Ted Strickland has approved legislation to end Ohio's sales tax on parts and labor involved in repair and maintenance work on small aircraft.
The provision which will lift that tax in 90 days was included in a $1.3 billion capital appropriations bill that Strickland signed on Tuesday, June 24, said Keith Dailey, his press secretary. The Ohio House and Senate approved the tax exemption and sent it to Strickland as part of the capital projects bill.
The tax exemption should help Ohio aviation maintenance companies reclaim business from aircraft owners who have been able to save thousands of dollars by flying their planes to states which don't have a similar tax, said Iftikhar Ahmad, Dayton's director of aviation. The exemption applies to general aviation, which includes smaller aircraft owned by individuals and businesses.
Operators of Federal Aviation Administration-certified aircraft repair stations, including Stevens Aviation at Dayton International Airport and Commander Aero Inc. at Dayton-Wright Brothers Airport, say the tax exemption would also help them attract new maintenance work, and hire additional workers. Both airports are owned by the city of Dayton.
There are 133 FAA-certified aircraft repair stations in Ohio, according to a study commissioned this year by a consortium of Ohio's largest airports, including Dayton International Airport.
Airport administrators see opportunities for expanding business in aircraft maintenance, Ahmad said Tuesday.
"There will be more opportunities for us when the word gets out," he said.
The airport-financed study by Silverlode Consulting Corp. said states without a similar tax include Michigan, Indiana and New York. At least two, Indiana and Michigan, have had job growth in support activities for aviation, while Ohio's job growth rate has lagged behind the national rate in this category, the study concluded.
Ohio's 5.5 percent sales tax, plus the local add-on of 1.5 percent in places including Montgomery County, adds significantly to an airplane's repair and refurbishing bill, aircraft repair company officials have said.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
