Although the 2007 Legislative Session started on a positive note, with several government reform measures being enacted at the urging of the new Governor, Elliot Spitzer, and the State Budget adopted on time, relationships at the Capitol deteriorated to the point where many issues were left unresolved at the end-of-June recess of the regular session. Senate Majority Leader Joseph Bruno, Assembly Speaker Sheldon Silver and Governor Spitzer agreed on very little and the negotiating process, which is usually furious at this time of year, ground to a halt.

Legislative leaders did indicate that they may be reconvening at a special session to address some unfinished business, including nearly a billion dollar Capital Projects Budget and NYC Mayor Bloomberg’s Lower Manhattan congestion pricing proposal.

FOR IMMEDIATE RELEASE

Contact: Brian Shaughnessy, (518) 432-9973

Aviation Sales Tax Relief to Spur Economic Growth

Albany, NY (Dec. 1, 2004) — The New York Aviation Management Association (NYAMA) commended Governor Pataki and members of the State Legislature today for amending the State’s Sales and Use Tax regulations. The General Aviation Sales Tax relief legislation, which takes effect today, will exempt aircraft maintenance, repairs and equipment from New York State Sales and Use tax.

Sales and use tax exemption for repair andmaintenance services performed on aircraft

The Tax Law was amended to provide that receipts from sales of the services of installing tangible personal property in aircraft and of maintaining, servicing or repairing aircraft are exempt from state and local sales and use taxes. The exemption also applies to receipts from sales of tangible personal property purchased by the person providing the exempt services, provided that the property becomes a physical component part of the aircraft. The exemption also applies to lubricants applied to an aircraft by the person who performs exempt services.