Representative Dwayne Bohac introduced legislation (HB2066) that tackled an issue Texas has had regarding sales tax on general aviation parts.
Currently, Texas is home to maintenance, repair and overhaul of general aviation aircraft commonly called MRO. While Texas offers general aviation services (labor) a sales tax exemption, it does not on parts, whereas many states offer sales tax exemption on both parts AND labor.
Aircraft are inherently mobile so the presence of a sales tax on both parts and labor pushes customers away from Texas to neighboring states, resulting in a loss of revenue and jobs.
This legislation would have extended the sales tax exemption to parts and equipment not just labor - just like commercial aircraft operators have. Unfortunately, the legislation did not make it to a vote.
Other legislation that was of interest during the 2019 session included:
HB 2666 Wilson, (Companion was SB 1214 Schwertner) Sales and use tax exemption for Ag Aircraft is allowed, Prior legislation had limited aircraft to be used within 30 nm only. This legislation clarified and eliminated the 30 nm limitation. The General Aviation community supported this. The legislation passed.
SB 1964 Zaffirini. Aviation and air transportation related sales tax for aviation facilities development would be deposited to the credit of the aviation development account (ex: sales tax on aircraft or rental, sale of taxable items sold at an airport, any other sale or use the comptroller determined aviation related). This did make it through the committee.
SB 2050 Schwertner. Would have created an Aviation Development Account, a separate account in the General Fund, which would make grants to political subdivisions.
Representative John Representative John Cyrier - a license pilot and Stearman owner was elected as Chairman of the Texas Legislative General Aviation Caucus.
"I am honored to have been elected by my colleagues to continue as the Chairman of the Texas Legislative General Aviation Caucus. I am looking forward to working alongside my fellow pilots and aviation enthusiasts during the upcoming session.
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