FOR IMMEDIATE RELEASE
State Rep. Peter J. Daley
Daley bill voted out of House Finance Committee
HARRISBURG, Oct. 19 – Legislation introduced by state Rep. Peter J. Daley II, D-Fayette/Washington, was voted out of the House Finance Committee and is one step closer to becoming law.
The measure, H.B. 1100, would eliminate the sales and use tax on fixed-wing aircraft sales, parts, maintenance and repair in Pennsylvania, allowing the state to create jobs while it gains a stronger foothold in the aviation and aeronautics industry.
“This legislation is not only about ensuring that Pennsylvania remains competitive with its neighboring states and regionally, but also about creating good-paying jobs,” Daley said. “When a similar measure was passed for helicopters, a company in West Chester added 412 jobs and now Pennsylvania collects six times more revenue in personal income and local wage taxes, as we were through the sales and use tax.
“And we know that there are far more fixed-wing aircraft than there are helicopters, which will need routine maintenance and repair. If we can just catch up to Ohio in terms of employment, the return to the General Fund could be $8.2 million, alone.”
Pennsylvania stands as the only northeastern state not to enact some form of meaningful tax reform on fixed-wing aviation. The SUT puts the Commonwealth at a distinct disadvantage over states like New York and Ohio. The industry employs about 9,400 people in New York and 8,300 in Ohio, to Pennsylvania’s 2,900.
“This is about jobs – from pilots to computer technicians, attendants and skilled aviation mechanics to maintain aircraft, to making Pennsylvania a competitive place to start or relocate a company that relies on aircraft in our global marketplace,” Daley said.
Earlier this year in Massachusetts, which doesn’t tax the industry, a deal was reached between the state and Gulfstream Aerospace to build a maintenance facility to service business jets, a move that will retain 130 local jobs, create 200 construction jobs and another 100 full-time positions when it is complete.
“We have the same opportunity to create jobs on this level in Pennsylvania,” Daley said. “With new jobs comes an uptick in wage tax, a healthier and more robust economy, and the wherewithal to address some of the budget cuts to important programs, such as education.”