Rhode Island repeals Av taxes

By Paul Lowe

August 1, 2004
Regulations, Taxes

A coalition of general aviation interests was successful in getting aircraft sales and use taxes repealed in Rhode Island when Gov. Donald Carcieri signed legislation that exempts the sale, storage, use or other consumption of new or used aircraft and aircraft parts from taxation. Labor charges continue to be exempt where they are separately stated by the seller.

The tax-repeal legislation, effective January 1, became a priority in Rhode Island as a result of a series of ambiguous legal rulings that allowed the aircraft sales and use tax to be applied to non-resident companies. Neighboring states Connecticut and Massachusetts also exempt aircraft from sales and use taxes.

“Aircraft operations require significant support from ground services and personnel, thus creating substantial economic benefit to the states and localities,” said Mike Nichols, NBAA manager of tax and finance issues. “Rhode Island will now be on par with its neighboring states, providing equitable tax treatment of aircraft.”

Signing of the legislation concludes more than one year of work by a coalition of GA organizations, led by NBAA regional representative Dean Saucier and NBAA tax committee member Ed Kammerer of Edwards & Angell. The coalition included NBAA, the Rhode Island Aviation Association, AOPA, the Rhode Island Pilots Association and several local pilots’ organizations.

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