Exempt sales of manned aircraft from sales and use tax
Impact
The proposed exemption has the potential to significantly lower the costs associated with acquiring manned aircraft, thereby encouraging investments in aviation, which is an important industry in Ohio. By eliminating sales tax on such transactions, proponents argue that it will make Ohio a more attractive location for aviation businesses, promoting local job creation and fostering economic development in related sectors. The bill could also enhance Ohio's competitive positioning as a hub for aviation activities.
Summary
Senate Bill 172 aims to amend section 5739.02 of the Revised Code to exempt sales of manned aircraft from sales and use tax in Ohio. This exemption is intended to provide relief for the aviation industry, particularly benefiting businesses and individuals involved in the purchase of aircraft for commercial or private use. The bill recognizes the importance of the aviation sector to the state's economy and seeks to stimulate growth by alleviating tax burdens associated with aircraft sales.
Contention
There may be points of contention surrounding this bill, particularly regarding the potential loss of tax revenue for local and state governments. Critics might argue that while the intention is to support a specific industry, the exemption could set a precedent for other industries seeking similar preferential treatment. Furthermore, there could be concerns about ensuring that the benefits of reduced costs for manned aircraft translate into tangible economic gains without adversely impacting public funding for essential services.