Aviation Jobs Act Tax Reform in New York Budget
NYAMA has worked for years advocating for the passage of the Aviation Jobs Act (AJA). The NYS Senate and Assembly passed, as part of the state budget, this measure which stimulates New York’s aviation industry and supports the state’s airports and the communities they serve.
The AJA will exempt general aviation aircraft and machinery or equipment that is installed on these aircraft from the state’s sales and use taxes beginning September 1, 2015. The current tax is seen as a financial barrier to aircraft locations to New York because most other surrounding states do not charge sales taxes or have more favorable tax treatment for such aircraft sales and basings. New York lost over 700 of these planes over a ten-year period.
According to the NYS Department of Transportation, each business jet, on average, means five direct on-airport jobs and $1 million of annual economic activity.