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Committee advances SB1085 to extend aircraft maintenance tax exemptions to general aviation
Summary
SB1085, which would expand transaction-privilege-tax exemptions to include many general-aviation maintenance, repair and overhaul activities, passed out of committee after competing testimony: MRO industry representatives said the change is needed to attract jobs and investment; consumer advocates said it primarily benefits private-jet owners and contains an uncertain fiscal cost.
The House Ways and Means Committee voted to return SB1085 with a due-pass recommendation after testimony for and against expanding a transaction-privilege-tax (TPT) exemption for aircraft maintenance, repair and overhaul (MRO).
Sponsor Senator Tim Dunn said the bill would bring economic activity and jobs by removing sales-tax disincentives for maintenance and refurbishment and cited Bombardier's and other firms' investments in Arizona. "We want that business here," one…
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