Tax Equity for Aviation Repair Facilities Heads to Governor

October 1, 2018

Good news! After a year-and-a-half effort, Chamber-backed legislation exempting aviation repair parts from Sales and Use Tax has been sent to the Governor. The Michigan Senate voted unanimously last week to correct an unfair advantage out-of-state repair facilities had over ones located in Michigan. We are hopeful Governor Snyder will sign the legislation.

Under current law, Michigan aircraft repair facilities do not enjoy a Sales and Use Tax exemption on aircraft parts that every other state offers in the Great Lake’s region. Michigan aircraft repair facilities currently pay 6% tax on aircraft parts. This causes both ­­private and commercial operators to seek repairs in surrounding states rather than right here in Michigan. 

HB 4350 and HB 4351 exempts aviation repair parts from Sales and Use Taxes, eliminating the barrier to fair competition and allowing Michigan aviation repair facilities to expand, create jobs, and be successful. 

For more information on HBs 4350-51, please contact Dan Papineau at