MADISON, Wis. — Aviation companies in Wisconsin would be exempt from having to pay sales taxes on aircraft maintenance parts and labor under a bill that has passed the state Assembly.
The bill passed Thursday now goes to Gov. Scott Walker.
The proposal would benefit companies like Gulfstream in Appleton and Cessna in Milwaukee. Those companies and others say having to pay the sales tax puts them at a competitive disadvantage because aircraft owners are taking their business to other states that don’t charge the tax.
Supporters say the tax cut would cost about $3 million a year in lost revenue, but it would generate more than twice that much in increased business for the aviation companies.
I don’t see a big gain in maintenance & parts billing here. The time & fuel to ferry my aircraft was always more than the sales tax saved. Plus, I had some good will in doing business locally. So, we Wisconsin owners have a very small respite in operational cost. Thats it.
I think it now gives maintenance facilities the same advantage as individuals when ordering parts on the internet or out of state. Level the playing field so now neither party has to pay or collect sales tax on parts and some of the maintenance facilities industry/dealer discounts may give them the advantage, so it might be cheaper to buy parts through your A&P than from Aircraft Spruce ect. at the same time increasing his profits.