Representative Don Humason



June 11, 2008 Chairman Robert A. DeLeo Chairman Steven C. Panagiotakos House Ways & Means Committee Senate Ways & Means Committee State House Room 243 State House Room 212 Boston, MA 02133 Boston, MA 02133 Representative Marie P. St. Fleur Senator Stephen M. Brewer State House Room 238 State House Room 109 B Boston, MA 02133 Boston, MA 02133 Representative Vinny deMacedo Senator Michael R. Knapik State House Room 124 State House Room 419 Boston, MA 02133 Boston, MA 02133 Dear Conference Committee Members: On behalf of the members of the Aviation Caucus I am writing to respectfully request that you not include in your final report the provisions to eliminate the sales tax exemption on aircraft sales and parts that were in the Governor’s and the House’s budgets. Massachusetts rightly put this incentive in place to encourage and promote the growth of the high tech, high skilled, and high paid aviation industry in the Commonwealth, and it is working. Across the state our airports have seen increases in the number of planes based here and repaired here, the amount of fuel sold here, the number of new companies that have opened. Repealing this exemption would capture very little revenue initially, but would kill general aviation-related businesses in the Commonwealth. Any money realized would come only in the first year, as word would quickly spread among the small and tight-knit group of people in the aviation world. After that, revenues would dry up as pilots, airplane owners, and companies moved out of the Bay State and crossed the borders into neighboring states that are more welcoming to the aviation community. With every plane that leaves we lose between 4 and 10 highly-skilled, good paying jobs and the revenue from those income taxes and sales taxes. All contiguous states have a sales tax exemption on aircraft sales and parts on their books. If you repeal the sales tax exemption Massachusetts will immediately become the most expensive and least competitive of all Northeast states. Massachusetts would be the only state in the Northeast without an exemption. Airports play an important role in the transportation infrastructure of Massachusetts. They make our state more attractive to the business community. They are economic engines for our Commonwealth. Removing the fledgling incentive of the sales tax exemption on aircraft sales and parts will hurt our airports and have a dire consequence on the aviation industry in our state. Protect the jobs and revenue provided by this valuable industry. Please leave the exemption in place. Thank you, most sincerely, Donald F. Humason, Jr., Westfield’s State Representative Co-Chair Aviation Caucus
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June 11, 2008

Chairman Robert A. DeLeo                            Chairman Steven C. Panagiotakos
House Ways & Means Committee                  Senate Ways & Means Committee
State House Room 243                                   State House Room 212
Boston, MA 02133                                         Boston, MA 02133

Representative Marie P. St. Fleur                   Senator Stephen M. Brewer
State House Room 238                                   State House Room 109 B
Boston, MA 02133                                         Boston, MA 02133

Representative Vinny deMacedo                   Senator Michael R. Knapik
State House Room 124                                   State House Room 419
Boston, MA 02133                                         Boston, MA 02133

Dear Conference Committee Members:

On behalf of the members of the Aviation Caucus I am writing to respectfully request that you not include in your final report the provisions to eliminate the sales tax exemption on aircraft sales and parts that were in the Governor’s and the House’s budgets.

Massachusetts rightly put this incentive in place to encourage and promote the growth of the high tech, high skilled, and high paid aviation industry in the Commonwealth, and it is working.

Across the state our airports have seen increases in the number of planes based here and repaired here, the amount of fuel sold here, the number of new companies that have opened.

Repealing this exemption would capture very little revenue initially, but would kill general aviation-related businesses in the Commonwealth. Any money realized would come only in the first year, as word would quickly spread among the small and tight-knit group of people in the aviation world.

After that, revenues would dry up as pilots, airplane owners, and companies moved out of the Bay State and crossed the borders into neighboring states that are more welcoming to the aviation community. With every plane that leaves we lose between 4 and 10 highly-skilled, good paying jobs and the revenue from those income taxes and sales taxes.

All contiguous states have a sales tax exemption on aircraft sales and parts on their books. If you repeal the sales tax exemption Massachusetts will immediately become the most expensive and least competitive of all Northeast states. Massachusetts would be the only state in the Northeast without an exemption.

Airports play an important role in the transportation infrastructure of Massachusetts. They make our state more attractive to the business community. They are economic engines for our Commonwealth.

Removing the fledgling incentive of the sales tax exemption on aircraft sales and parts will hurt our airports and have a dire consequence on the aviation industry in our state.

Protect the jobs and revenue provided by this valuable industry. Please leave the exemption in place.

Thank you, most sincerely,

Donald F. Humason, Jr.,
Westfield’s State Representative
Co-Chair Aviation Caucus

This Site Designed and Maintained by: The Barre Group