Chamber Supports Legislation to Fix Aviation Sales Tax Penalty; Keep Employers in Michigan

March 27, 2017

The Michigan Chamber is strongly urging the State House to quickly pass legislation to remove a tax “penalty” on Michigan-based aviation repair facilities who want to fix Michigan-based airplanes.

State Representative Bronna Kahle (R-Adrian) has introduced legislation that would reverse bad policy that is hurting Michigan-based airplane repair facilities who must charge sales tax for repair parts on Michigan-registered planes. Ironically, non-Michigan planes are exempt from the Michigan sales tax on the same parts. This upside-down policy means that operators of Michigan planes have little choice but to fly to surrounding tax-free states to have their planes repaired.

Some Chamber members report that they have had to open satellite facilities in tax-free states just to keep their business afloat, which means Michigan loses out on more business, and more Michigan-based employees!

Rep. Kahle’s bill fixes this illogical policy, with the goal of keeping Michigan repair facilities on a level playing field, Michigan planes being repaired in our great state, and more employment here!

For questions about this issue, or any other tax-related topics, please contact Tricia Kinley at tkinley@michamber.com.