Breaking News
Home » Around Town » New Economic Development Initiative Measures Announced
Del. Richard Anderson

New Economic Development Initiative Measures Announced

Provided by Del. Richard Anderson’s Office

Del. Richard Anderson

This morning at Manassas Regional Airport, a group of stakeholders highlighted the estimated $1 billion
impact of Delegate Rich Anderson’s (R-51) HB1732, which passed the Virginia General Assembly in February with overwhelming bi-partisan support in both houses.

The bill, passed unanimously in the Senate, and by a 91-5 vote in the House of Delegates, creates an exemption from the retail sales and use tax for parts, engines, and supplies used for maintaining and repairing aircraft, including unmanned aerial systems. The exemption does not apply to tools and other equipment not attached to the aircraft, and is effective starting July 1, 2018.

On the economic impact of the bill, Delegate Anderson stated: “I am very proud to have worked with my partners in the General Assembly, the Virginia Aviation Business Association, and Aircraft Owners and Pilots Association in crafting this legislation. Virginia is home to several thousand general aviation aircraft, but has few major maintenance and repair operations. Many large aircraft owners fly their aircraft to other states for maintenance. Because of this, the Commonwealth is losing millions of
dollars in economic activity every year. This exemption will make Virginia more attractive for major maintenance, repair, and overhaul shops to set up and expand here in the Commonwealth. The international accounting firm of Pricewaterhouse Coopers estimates that over $1.05 billion could result from this common sense reform.”

Virginia Aviation Business Association Executive Director Daniel “Bud” Oakey said: “The mobility of general aviation aircraft allows great flexibility in moving aircraft for major maintenance. Often multiple tasks – paint, engine overhaul, and avionics upgrades – are all being performed at the same time. These
combined tasks often cost six and seven digits, making it financially advantageous to seek maintenance in
Wisconsin, Georgia, or Colorado, to name a few locations. The options are endless, and the one key  ingredient taking Virginia out of the competition is that all competing states have exempted aviation parts and supplies from their state and local sales taxes. Delegate Anderson’s legislation simply made Virginia competitive and we thank him for it.”

Check Also

Compton & Duling, 50 years

50 Years in the Making, Prince William Law Firm Compton & Duling Celebrates

By Katherine Gotthardt Sponsored by Compton & Duling, LC Fifty years ago, the Prince William …