ADVOCATING FOR YOU continued


we appreciate the issues that S.B.969 and H.B.1201 intended to address, the proposed bills presented many impractical, unlawful, and logistical problems. HAI remains committed to working with other opera- tors, legislators, leaders, and community members in every state to proactively address concerns and answer questions regarding vertical aviation and its role in the community.


Environmental Issues In February, the California Senate introduced S.B.720, which, if enacted, would require each public or private airport in the state to report to both the California Department of Transportation and the California Air Resources Board the regulations, incentives, and mea- sures the airport is deploying to achieve net-zero green- house gas emissions from its operations. The bill also includes a requirement for each public or


private airport that has a high volume of private flights with low passenger capacity in a disadvantaged commu- nity to report to the department and to the relevant air quality management district its efforts to mitigate envi- ronmental injustice, poor air quality, and other effects on neighboring communities. The bill stipulates that both reports would be inte- grated into the airport’s sustainability plan, and if the air- port does not have a plan, it must file its reports on or before Jun. 1, 2024. HAI and AOPA, the National Air Transportation


Association (NATA), and the National Business Aviation Association (NBAA) submitted a coalition letter opposing S.B.720.


Of significant concern to our industry is the fact that the legislation’s requirements are impossible to ful- fill. Airports lack the practical and legal ability to ascertain the passenger occupancy or cargo loads of an aircraft and to determine the trigger for “low occupancy.” This bill would affect 242 public-use airports and a


few hundred private-use airports in California, many of which don’t have towers and aren’t attended 24 hours a day, making reporting requirements infeasible and highly burdensome. Many airports are already under- staffed and underfunded as well; additional burdens could impede their efforts to operate safely and efficiently.


14 ROTOR JUNE 2023


Sales and Use Tax Exemptions Recently, Texas State Rep. Ernest Bailes IV (R-18) intro- duced H.B.3003, which, if passed, would eliminate taxes on aircraft repair, remodeling, and maintenance services. The relief would also apply to machinery, tools, supplies, and equipment used exclusively for the repair, remodel- ing, and maintenance of aircraft. Additionally, any tangi- ble personal property that is permanently affixed or attached to an aircraft as a component part would be exempt from taxes. It’s important to note that the general aviation indus-


try has a massive economic impact in Texas, with a siz- able portion coming from aircraft maintenance. However, the current taxes on aircraft parts put the maintenance business at a competitive disadvantage. Aircraft parts are exempt from sales taxes in almost all adjacent states and 35 states nationwide. H.B.3003 aims to create more jobs in aircraft maintenance, which is a labor-intensive industry that provides highly skilled, high-wage employ- ment. Therefore, HAI fully supports and looks forward to the passage of this legislation. Massachusetts, meanwhile, has introduced a budget amendment (Amendment 4) to H.B.3770 that would repeal that state’s aircraft sales tax exemption. A major factor in Massachusetts’s economic success is a regula- tory framework that provides a distinct competitive advantage compared with neighboring states. The air- craft sales tax exemption, which Amendment 4 aims to repeal, has been a major motivator in deciding where to base aircraft. The 2002 sales tax exemption gave way to a booming aviation maintenance sector and an increase in Massachusetts-based aircraft that now generates in-state revenues of approximately $1 billion annually. Notably, states that experience the broadest range of


industry growth employ a comprehensive aviation incen- tive plan extending to both aircraft and maintenance. The sales tax exemption on aircraft storage, sales, and main- tenance has attracted major corporations to increase their fleet size and carry out all facets of maintenance and modification within the state, supporting aviation jobs and the airports that rely on them. Eliminating the aircraft sales tax exemption would harm aviation jobs and airports in Massachusetts. Therefore, HAI opposes Amendment 4 of H.B.3770 and has urged the state House Ways & Means Committee to oppose it.


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