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Senate approves sales-tax exemption for Utah-made aircraft delivered out of state
Summary
Senate passed House Bill 85 to exempt aircraft manufactured in Utah and delivered out-of-state from state sales tax; sponsors said the change eliminates administrative burden and helps retain aircraft manufacturing jobs. Senators debated the possibility that the exemption could increase overall tax-exempt categories.
The Utah Senate approved House Bill 85, a measure that clarifies a sales-tax exemption for aircraft manufactured in Utah and delivered to buyers outside the state.
Proponents, including floor sponsors who cited local manufacturers, said the bill simply recognizes current practice and removes administrative hurdles for manufacturers that otherwise title aircraft outside Utah to avoid in-state paperwork. Senate supporters argued that the state does not currently collect sales tax on out-of-state aircraft sales and that the bill would not create immediate fiscal loss but would make it easier for manufacturers to operate in Utah.
Opponents warned that adding another sales-tax exemption enlarges an already substantial body of exemptions and could lead to future fiscal effects. The bill garnered discussion about whether ‘‘used’’ aircraft language in the House amendment might extend exemptions beyond intended cases; senators questioned how the statutory language would operate when aircraft are used both inside and outside the state.
The Senate recorded a roll-call vote and sent the enrolled bill back to the House for signature.
