EDWARDSVILLE — Hundreds of good-paying Metro East jobs could be lost without an override of Gov. J.B. Pritzker’s veto of an aviation materials tax exemption, according to Leadership Council Southwestern Illinois Executive Director Ronda Sauget.
Sauget updated the Madison County Board’s Grants Committee Monday on HB 3902 that reinstates Illinois’ sales tax exemptions for aircraft materials. The exemption expired December 2014 but companies had not been informed about the expiration or required to collect the tax.
The bill passed overwhelmingly in both the House and Senate, but was vetoed by Pritzker Nov. 25.
Sauget said eliminating the tax exemptions could impact a large number of Metro East jobs, including more than 500 at West Star Aviation at St. Louis Regional Airport in East Alton.
“It’s a huge, large industry and it employs a lot of people,” Sauget said. Similar facilities are located at St. Louis Downtown Airport in Cahokia.
The bill is expected to be taken up in the General Assembly’s January session. Sauget said if the veto is not overridden, it puts hundreds of jobs at risk.
“It’s a huge, huge issue for companies,” she said, noting that 38 other states have similar tax exemptions. “Those aircraft companies can fly to any of them.”
In October West Star Aviation received a “Captain of the Riverbend” Award by the RiverBend Growth Association. The company was cited for its continued success and expansion, including new buildings. It operates out of 383,000 square feet of space and, in January, completed construction of a 60,000-square-foot hanger/office space.
Sauget on Monday also reported area construction projects are receiving a boost through the state’s new capital spending bill, although there are still major concerns about the announced closures of Interstate 255 next year. The highway will be closed in two sections, from Interstate 64 to Collinsville Road, and Illinois 15 to I-64.
Planners have cited a major time savings in a complete closure, but local officials say it will create a major burden on drivers, especially tractor-trailer drivers.
At Monday’s meeting, Sauget noted the interstate detour for the southern closure is primarily in Missouri while other alternative routes go through already heavily-traveled areas.
On a more positive note, she said Japanese business leaders have invited a group of St. Louis-area business and economic development officials to visit Japan next year.
This comes after officials with the U.S. contingent of Keidanren — also referred to as the Japan Business Federation; the Japan External Trade Organization Chicago, a nonprofit organization providing business support for Japanese companies — and the Japanese Consulate in Chicago visited the St. Louis region in early October.
The tour was put together by the Leadership Council and AllianceSTL after a series of meetings in Chicago and Washington, D.C. At the time Japanese officials talked about inviting local officials and business leaders to Japan.
Sauget said one of the exciting things is that the program, called the GEN-J Program, will pay the cost. She noted that indicates some serious consideration about development in this area. She said details, including exactly who would be attending the trip, have not been worked out yet.
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