Bill
HB 4120
Overview: HB 4120, "Use tax: exemptions; purchase of certain aircraft and aviation equipment; exempt", was placed on third reading. The bill amends Section 4k of the Use Tax Act of
Overview: HB 4120, "Use tax: exemptions; purchase of certain aircraft and aviation equipment; exempt", was placed on third reading. The bill amends Section 4k of the Use Tax Act of 1937 to provide a sales and use tax exemption for the purchase of certain aircraft and aviation equipment.
Purpose and Intent: The primary goal of HB 4120 is to incentivize investment in the aviation industry by exempting the purchase of certain aircraft and related equipment from state use tax. This is intended to support the growth and competitiveness of the state's aviation sector.
Key Provisions:
- Exempts the sale and use of the following from the state's 6% use tax:
- Aircraft over 6,000 pounds for use in the transport of passengers or cargo for hire
- Parts and materials used in the repair, replacement, or maintenance of qualified aircraft
- Equipment used primarily for the navigation, guidance, and control of qualified aircraft
Affected Parties and Impacts: The bill would benefit aircraft owners, operators, and maintenance providers by reducing their tax burden and operating costs. This could lead to increased investment, job creation, and economic activity in the state's aviation industry.
Procedural and Timeline Considerations: HB 4120 has been placed on third reading, indicating it is nearing final passage in the state legislature. If approved, the tax exemptions would take effect immediately upon the governor's signature.
Compiled from official sources — confirm details with the bill’s official record.
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