Two proposed Connecticut bills may hinder GA
March 10, 2011, 11:51 pm
wo tax bills that have been proposed in Connecticut may hinder the general aviation industry and pilots within the state, according to the Aircraft Owners and Pilots Association.
The bills include the addition of an annual tax on aircraft owners and the elimination of a tax exemption for labor on repairs made to small aircraft, the source said.
The state's budget gap, which may range from $3.2 to $3.5 million, is potentially the cause for the proposal. By passing the measures, the state could create tax revenues.
However, the AOPA warns that the new taxes may actually hinder the state financially, by driving away general aviation business.
"Given the low aviation tax environment of the region and the small size of the state, these twin tax increases are likely to cause a mass migration of aircraft out of the state, and a huge loss of aviation business activity," said AOPA's Greg Pecoraro.
The group stated that implementing the taxes may actually put the state in a worse position, financially.
With new expenses for pilots who own private aircraft living in the state, they may have to sacrifice other important aviation-related investments, such as life insurance for pilots, in order to cover the tax bill associated with their planes.
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