St. Louis, MO – July 29, 2008 – The Spirit of St. Louis Airport (SUS) is proud to announce that Governor Matt Blunt has signed a bill that will eliminate sales tax on aircraft repair parts, making Missouri more competitive with neighboring states that have already eliminated the tax.
The bill would expand the current exemption that applies only to aircraft used as common carriers of people and property. The exemption will now apply to purchases of materials, replacement parts and equipment purchased for use directly upon, and for the modification, repair, replacement and maintenance of aircraft, aircraft power plants, and aircraft accessories from January 1, 2009, to January 1, 2015. This would give all aircraft the same advantages and put Missouri on the same playing field as many surrounding states.
“This bill allows aircraft maintenance providers in Missouri the ability to compete with those in surrounding states and provides an excellent opportunity for job creation and economic development ” said John Bales, director of aviation at Spirit of St. Louis Airport. “This is huge for aviation in Missouri and would not have been possible without the help of numerous Spirit of St. St Louis tenants and aviation supporters across the state.”
Additionally, the bill includes an act that increases the cap on the amount of jet fuels sales taxes that can be deposited into the State Aviation Trust Fund. Under current law, only $6 million generated from jet fuel sales taxes may be deposited to the credit of the Aviation Trust Fund. This act increases the cap to $10 million with the funds used to support aviation infrastructure projects across the state.
The bill also includes an act that modifies the definition of “commercial aircraft” for aircraft taxation purposes. Under the current statute, aircraft with a weight threshold of greater than 7,000 pounds are taxed, on a pro rata share, on the amount of time actually flown in Missouri. Under the new act, the term “commercial aircraft” is now any aircraft fully equipped for flight and of more than 3,000 pounds maximum certified gross take-off weight. This law will benefit aircraft in this class by lessening their personal property tax burden and encouraging them to remain based in Missouri.
Spirit of St. Louis Airport is the busiest General Aviation airport in the FAA’s Central Region and is St. Louis’ prime general aviation reliever airport. The airport is unique because the revenue generated from wholesale fuel sales, land development and real estate rental allows it to be one of the few profitable airports of it kind and operates without public subsidy. By applying profits back into its operations, Spirit of St. Louis Airport has become one of the premier General Aviation airports in the country and is considered the Business Aviation Center of the Midwest.
For more information on the Spirit of St. Louis Airport or the new bill, contact John Bales, Director of Aviation, Spirit of St. Louis Airport or visit www.spiritairport.com.