Regulatory and Regional Issues Legislative Action Around the Region Presented by Jared Esselman Director of State Advocacy AOPA

Laboratories of Democracy Engines of Aviation LOCAL PILOTS & LOCAL LAWS The FAA maintains a uniform set of regulations in regards to the National Airspace System and airports in that system, but the true cost of aviation can vary dramatically from state to state and even from county to county. + Eastern Region In the last two years; The US Congress has considered 5 aviation related bills. In the last 6 months; States have considered over 1,290 aviation related bills.

Aviation is a highly mobile industry and states must compete to keep those customers, and those jobs, within their boarders. For many states, including Maryland, there is no geographical point within the state that is not an easy minute flight from a tax free neighbouring state. US State Tax Statistics MAKING A CHOICE Aircraft Sales Tax Eight states have completely exempted aircraft sales from the sales and use tax. Sales Tax on Aircraft Parts and Labor Twenty Five states have passed exemptions on the sales tax for aircraft maintenance parts. “Fly Away Exemptions” Fly-Away exemptions encourage aircraft owners to do business in a state other than the one they reside in AVIATION FRIENDLY STATES 50%

DelawarePennsylvaniaOhioWest VirginiaVirginia AC Sales - No Sales Tax AC Sales – Helicopters Exempt AC Sales – Casual Sale Exempt AC Sales – capped at 2% MX parts - No Sales Tax MX Parts Exempt Fractional Sales capped at $800 Credit for Tax Paid Fly Away Exemption Fuel Sales – Tax refundable No Registration Fee MX Parts Exempt MX Parts not exempt No Registration Fee No Property TaxRegistration Fees No Registration Fees Registration Fees No Property Tax Credit for Tax PaidNo Property TaxProperty Tax Living on an Island of Taxation REGIONAL PARITY Maryland tax rate is 6%. Current exemptions include ‘common carrier’ for interstate or foreign commerce; and credit for tax paid when purchase is made in another state and tax is paid to that state.. There is also a condition of sales tax exempted when an aircraft is purchased for the intent of resale. This applies to flying clubs as the club purchases a plane to lease to its members. (However this exemption has com under attack from the Maryland Comptrollers office.)

Frederick Municipal Airport “Every day I know there are jobs I loose because of the tax free prices 20 minutes away in Pennsylvania.” 2016

MX Easton Municipal Airport “I often have customers call to get an estimate and when the subject of sales tax comes up, that’s the end of the phone call. I know I’ve lost that work to a shop in another state.”

Introduce Legislation Community Testify at Committee Hearings Community Call for Co-Sponsors on Legislation Discuss airport business options with local leaders. Engage the Governors Office for Final Steps Engage Communities => Establish Policy LET’S GET SOCIAL!

The goal of aviation day events is to highlight the success and needs of the state aviation system, and the impact it has on the economy and community both quantitatively and qualitatively. AOPA partners with several aviation groups and associations to help share our enjoyment of flight with legislators during caucus meetings. Our partners help bring in subject matter experts, state aviation officials and everyday aviation enthusiast to present innovative ideas, infrastructure and economic growth concepts, and share a passion for flying that is exciting and energetic. Your AOPA Airport Support Network Volunteer has a step by step process on how to host an airport open house, and can help organize and facilitate such an event. Use them and invite your local and state elected officials to come speak to the value of the airport to the local community. State Aviation DayAviation CaucusAirport Open House Social Activities That Promote Aviation to Legislators WHAT ELSE CAN WE DO?

KENTUCKY Gov. Matt Bevin’s budget earmarked $10 million this year and another $10 million for the next year for hard surface maintenance at the state’s airports. The legislature has approved an estimated $8-$10 million each year for the next two years in jet fuel tax proceeds for aviation/airport improvements. TENNESSEE The legislature has established an Airport Economic Development Fund to pay for airport expansion and other projects. This fund, which doesn’t have money in it yet, may soften the blow that state airports took when the same legislature last year gave FedEx and other large carriers a generous fuel tax cap, cutting into state general aviation funding. Eastern USA Legislation Highlights

SOUTH CAROLINA South Carolina needs $3.4 million to maintain airports and to make the required 5 percent match for $61 million in FAA airport improvement grants, but the legislature is set to approve just $2.3 million, falling short of the match. NORTH CAROLINA North Carolina slapped a surprise 7.25 percent labor tax on aircraft maintenance in 2015, and we’re working to revoke or at least cap that tax. MROs tell us that maintenance work is already leaving the state.

NEW YORK AOPA won passage of a $30 million Airport Capital Budget that will provide $40 million for each of the next 4 years, plus a $200 million competition in which 5 upstate airports will be awarded $40 million each for “transformative infrastructure projects.” MARYLAND We’re working on a bill to exempt aircraft maintenance from state taxes. There is opposition, but the facts show that such exemptions create new business and new jobs.

AOPA has put together a free, comprehensive program that gives you all the information you need to get current again. Free seminars sponsored by local flight schools and clubs provide all the ground training you need, and show you, step-by- step, what you need to do to complete the Flight Review. AOPA is committed to helping more pilots experience the special benefits of flying club membership. Whether you want to find out more about flying clubs in your area, join an existing club, or even start a brand new club, we’re here to help. AOPA is working to created model STEM curriculum to be used at the High School level to introduce students of all subject matters to aviation as a career and hobby. Rusty Pilots Flying ClubsAviation in High Schools Three Image & Content Layout Option MARKETING COMMS

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