Michigan House Bill HB4611

Michigan 2023-2024 Regular Session

• Introduced: 5/23/23
• Refer: 5/23/23

Caption

Use tax: exemptions; purchase of certain aviation equipment; exempt. Amends sec. 4k of 1937 PA 94 (MCL 205.94k).

Impact

The introduction of this bill reflects a broader strategy to promote the aviation industry within Michigan by making it more economically viable for air carriers to maintain and operate their fleets. It addresses particular requirements for both aircraft and the parts used, including temporary location provisions and timelines for when the aircraft must leave the state after receiving maintenance. As such, this change is likely to strengthen Michigan's role in the national air transport network by providing incentives for air carriers to operate from within the state.

Summary

House Bill 4611 aims to amend the 1937 Use Tax Act related to the taxation of aircraft and associated materials. The bill specifically exempts certain parts and materials affixed to aircraft that are owned or used by domestic air carriers from use tax liabilities. This legislative change is significant for air carriers, as it seeks to lower their operational costs by alleviating tax burdens on essential equipment used in aircraft operations. The aircraft covered under this exemption must meet specific criteria, including weight and use cases, such as transporting air cargo or passengers.

Contention

While supporters argue that HB 4611 fosters competitive advantages for local aviation businesses, there may be discussions surrounding how these tax exemptions impact state revenue streams. Critics may voice concerns about the fairness of providing such exemptions to specific industries, possibly arguing that this could set a precedent for future tax legislation that disproportionately favors certain business sectors. Additional debates may arise regarding whether the bill adequately protects state interests while promoting growth in the aviation sector.