MADISON, WIS. – The Wisconsin Committee On Economic Development & Local Government held a hearing October 23, 2013, on Senate Bill 348 at the State Capitol in Madison, Wis. Proponents include aviation business owners, aircraft owners and airport management who strongly urge support of both Senate Bill (SB)-348/Assembly Bill (AB)-438, the exemption of sales tax on aircraft parts, maintenance, and labor to remove a competitive disadvantage that impairs job retention and creation for Wisconsin’s aerospace industries.
These bills expand the current Wisconsin sales tax exemption that currently only applies to “commercial air carrier” aircraft to include all aircraft, which is already in effect in 36 other states nationally.
Aviation is an inherently mobile industry, and aircraft owners have many choices when comparing facilities to maintain their aircraft, especially when these facilities are within a short distance of one another. With surrounding states near Wisconsin offering exemptions on maintenance, parts, and labor, business is literally flying out of the state of Wisconsin and transferring good paying aircraft maintenance jobs across state lines where these exemptions exist. Each year over 100 aircraft maintenance facilities are losing revenue to these out-of-state competitors – revenue that equates to jobs, income tax revenues, and the creation of investment capital.