Tax man is Unfriendly, Boo Hoo!

"Illinois lawmakers ought to drop the state's sales tax on aircraft and
aircraft parts so the industry can remain competitive, aviation
industry officials said at a meeting at DuPage Airport in West Chicago
Friday.
Ed Green, vice president and general manager of the Springfield- based
Garrett Aviation Service Centers, said 28 states do not have an
aviation tax and 20 states don't tax aircraft maintenance, either.
The taxes, he said, are disincentives for people to buy or service
aircraft in Illinois or to do business here at all.
"You have a mobile product. It's not a captive audience. They can go
anywhere to get maintenance done," he said.

For example, if an aircraft owner wanted a $200,000 engine overhaul, it
would cost $14,000 more in Illinois, based on a 7 percent sales tax.
Going to another state would cost more in fuel but less overall. The
same is true for corporate jet purchases, which are typically much
more.
Green said the benefits from new jobs, people coming to Illinois and
staying in hotels and eating at restaurants, along with taxes on
corporate profits, would replace lost dollars from lifting the airplane
tax.
He also dismissed the idea that lifting the tax would be a break for
people affluent enough to afford an aircraft, saying "they've already
got that break" in other states.

George Yundt, regional sales manager for the Dassault Falcon Jet Corp.
in Orland Park, agreed. He said in his nine years with the firm, he's
seen 37 businesses with aviation departments either leave the state, go
bankrupt or close their flight departments.
"There's something endemic at the state level," he said. "This is not a
corporation-friendly state to have your headquarters here. Think about
it, how many corporations came to Illinois in the past few years?
Boeing, and that's it."

DuPage Airport Executive Director David Bird said aviation leaders need
to identify why the industry isn't as strong as it should be in
Illinois.
"That exodus seems to be problematic, and (Yundt) is right," he said.
"We need to get to the cause of that, and maybe it's more than just one
cause."

The first annual Governmental Affairs Day was organized by the Chicago
Area Business Aviation Association."

We'll take our toys elsewhere, you meanees! JG

Yup. We bought our Cherokee 3 months after gov. Rod Blafukusabunch
implemented the use tax. I hope he enjoyed the extra 3 grand he cost us.

Bah.


wrote in message
ups.com...
"Illinois lawmakers ought to drop the state's sales tax on aircraft and
aircraft parts so the industry can remain competitive, aviation
industry officials said at a meeting at DuPage Airport in West Chicago
Friday.
Ed Green, vice president and general manager of the Springfield- based
Garrett Aviation Service Centers, said 28 states do not have an
aviation tax and 20 states don't tax aircraft maintenance, either.
The taxes, he said, are disincentives for people to buy or service
aircraft in Illinois or to do business here at all.
"You have a mobile product. It's not a captive audience. They can go
anywhere to get maintenance done," he said.

[snip]

In article . com,
wrote:

"Illinois lawmakers ought to drop the state's sales tax on aircraft and
aircraft parts so the industry can remain competitive, aviation
industry officials said at a meeting at DuPage Airport in West Chicago
Friday.


That is just part of Mayor Daley's "Green" agenda for Illinois. After
all, the Gov. is in Daley's hip pocket.

"Orval Fairbairn" wrote in message
news
In article . com,
wrote:

"Illinois lawmakers ought to drop the state's sales tax on aircraft and
aircraft parts so the industry can remain competitive, aviation
industry officials said at a meeting at DuPage Airport in West Chicago
Friday.


That is just part of Mayor Daley's "Green" agenda for Illinois. After
all, the Gov. is in Daley's hip pocket.

Actually the gov has pretty much burned that bridge and a bunch of others.
He is currently under federal investigation for contract "irregularities."

In article ,
"Dave Stadt" wrote:

"Orval Fairbairn" wrote in message
news
In article . com,
wrote:

"Illinois lawmakers ought to drop the state's sales tax on aircraft and
aircraft parts so the industry can remain competitive, aviation
industry officials said at a meeting at DuPage Airport in West Chicago
Friday.


That is just part of Mayor Daley's "Green" agenda for Illinois. After
all, the Gov. is in Daley's hip pocket.

Actually the gov has pretty much burned that bridge and a bunch of others.
He is currently under federal investigation for contract "irregularities."

If we are lucky, he will take Daley with him. Mongo needs some new
friends to play with in his cell.

"Orval Fairbairn" wrote in message
news
In article ,
"Dave Stadt" wrote:

"Orval Fairbairn" wrote in message
news
In article . com,
wrote:

"Illinois lawmakers ought to drop the state's sales tax on aircraft
and
aircraft parts so the industry can remain competitive, aviation
industry officials said at a meeting at DuPage Airport in West
Chicago
Friday.


That is just part of Mayor Daley's "Green" agenda for Illinois. After
all, the Gov. is in Daley's hip pocket.

Actually the gov has pretty much burned that bridge and a bunch of
others.
He is currently under federal investigation for contract
"irregularities."

If we are lucky, he will take Daley with him. Mongo needs some new
friends to play with in his cell.


I've come to the conclusion that when the Feds "Cleaned up Chicago" with
regards to organized crime they were simply getting rid of the competition
for the politicians.

Damn! The FAA really gave Mayor Daley a spanking after he closed Megis.

http://www.cnn.com/2005/TRAVEL/10/26....expansion.ap/

wrote:

We'll take our toys elsewhere, you meanees! JG

They're pointing out that Illinois is losing more money in income taxes due to
lost jobs than it's gaining on the taxes on aircraft. This is typical. Several
years ago, Congress levied a luxury tax on the sale of new aircraft. They
rescinded it a year or so later when Beechcraft produced the cancellation orders
they received and pointed out that the lost income tax revenue at their company
alone was greater than the entire revenue from the luxury tax.

Illinois is facing the same situation.

George Patterson
Drink is the curse of the land. It makes you quarrel with your neighbor.
It makes you shoot at your landlord. And it makes you miss him.

by George Patterson Nov 2, 2005 at 05:50 PM


wrote:

We'll take our toys elsewhere, you meanees! JG

They're pointing out that Illinois is losing more money in income taxes
due to
lost jobs than it's gaining on the taxes on aircraft. This is typical.
Several
years ago, Congress levied a luxury tax on the sale of new aircraft. They

rescinded it a year or so later when Beechcraft produced the cancellation
orders
they received and pointed out that the lost income tax revenue at their
company
alone was greater than the entire revenue from the luxury tax.

Illinois is facing the same situation."

The tax subsidies that GA manufacturers receive, and that airports get
from the FAA for capital and operating purposes, of course encourage
overproduction (and overusage) by distorting economic behaviour. (The
AOPA of course realizes that GA is very heavily subsidized - thus their
mostly absurd and disingenous arguments against user fees.) By
subsidizing a particular industry, other pieces of the economy will need
to be taxed at higher levels to compensate. Why not eliminate sales taxes
on tractors, to benefit farmers? More people would work for John Deere
then, and pay income taxes. How about eliminating sales taxes on
automobiles, to benefit the Big 4? They pay great wages and benefits, and
are a critical component of the national economy. They should be
subsidized.

Skylune wrote:

Why not eliminate sales taxes
on tractors, to benefit farmers?

Apples & oranges here. Light planes are luxury items. Tax them too much, and
fewer get bought. The only way a sales tax can work in conjunction with an
income tax is to tax necessities.

George Patterson
Drink is the curse of the land. It makes you quarrel with your neighbor.
It makes you shoot at your landlord. And it makes you miss him.