Massachusetts May End Five Percent Sales Tax Exemption For Aircraft And Parts

The Massachusetts House has voted to end a sales tax exemption for aircraft and parts but the State Senate is not similarly inclined. The House voted 87 to 67 against a budget amendment that would have preserved the exemption from the five percent tax that applies to almost everything else in Massachusetts. Cutting the exemption would add about $7 million a year to state coffers, assuming the same level of business activity was maintained, something opponents said wont happen. Senate President Therese Murray, a Democrat from Plymouth, favors maintaining the exemption, saying eliminating it would push aircraft business to the neighboring states of New Hampshire, Rhode Island, New York and Connecticut that all exempt aircraft and parts from tax.


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