Aircraft operations in Indiana are about to become more affordable after state legislators approved a slate of aviation tax exemptions and restructurings. The measures, adopted at the urging of the Aircraft Owners & Pilots Association (AOPA) and other aviation groups, remove state sales tax on jet fuel and 100LL avgas and restructure the previously existing excise tax on aviation fuel to a fixed total state tax rate.
Under the new legislation, the net drop for 100LL is 50 cents per gallon and about 30 cents per gallon for jet-A, according to an AOPA spokesman. Both fuels will now have a fixed 10-cent-per-gallon excise tax at the state level. The new tax structure would mean savings per fill-up of more than $100 for a Beech Baron and $220 for a King Air 200.
Also included in the new legislation is a repeal of sales tax on aircraft maintenance and aircraft parts. “Indiana had to respond, as other states have seized on their neighbors’ tax structures to gain competitive advantages for their aviation businesses,” said Bryan Budds, AOPA Great Lakes regional manager. “Indiana repair shops have been unable to compete by attracting out-of-state aircraft for services, and have seen the troubling trend of based aircraft leaving the state to save money.”