Last week, the Colorado House of Representatives passed by a vote of 65-0 House Bill 1261, which exempts sales tax on new or used aircraft purchased out of state, following the state’s loss of Adam Aircraft. Adam’s recent end of operations cut 500 jobs and it is hoped the bill will encourage other manufacturers and distributors to do business. The existing law “makes it difficult, if not impossible, for aircraft manufacturers to locate in this state,” the bill’s co-sponsor, Rep. Bernie Buescher, D-Grand Junction, told the Denver Business Journal. Buescher, who formerly ran an aircraft maintenance company, said the current system encourages sellers to move their aircraft out of state prior to official sale to avoid sales and use taxes. The bill will now move to the Senate Finance Committee for consideration. It was originally introduced last year along with a business and economic-development agenda for 2008, put forth by Colorado Gov. Bill Ritter.
Sales Tax Exemption And Colorado Aircraft
Key Takeaways:
- The Colorado House of Representatives unanimously passed House Bill 1261, which exempts sales tax on new or used aircraft purchased out of state.
- This legislation aims to encourage aircraft manufacturers and distributors to locate and do business in Colorado, following the closure of Adam Aircraft and its 500 job losses.
- The bill seeks to rectify existing tax laws that made it difficult for aircraft manufacturers to operate in the state and encouraged tax avoidance by sellers.
- House Bill 1261 will now proceed to the Senate Finance Committee for further consideration.
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