JEFFERSON, Mo. – It’s rare when there’s a bill directly related to economic development and receives no opposition.
SB 777, sponsored by Sen. Brian Nieves, R-Washington, renews the tax exemption for replacement parts and equipment used on aircraft set to expire Jan. 1, 2015. The bill expands the exemption indefinitely. It also creates a sales and use tax exemption for airplanes sold to non-Missouri residents. The bill was heard in the Senate Ways and Means Committee on Thursday.
Aviation Technical Services spokesperson Brian Grace said the Seattle-based company only looked at states with equipment exemption when looking to place a plant. They chose Kansas City International Airport for its new location. ATS is set to bring 600 jobs to the state at about a $60,000 annual average. Without the exemption, ATS would consider another location, Grace said.
Eight people testified in favor of the bill including representatives from Kansas City and small airplane parts companies in both St. Louis and Kansas City. Jeremy Cox, the owner of Jet Brokers located at Spirit of St. Louis Airport said there is no downside to the second piece of the bill with the sales and use tax exemption.
Nieves was not concerned about losing tax dollars because the customers who would take advantage of this bill would not conduct business in Missouri without it.
