Posted on March 10, 2011
State Senator Rob Kane and State Representative David Labriola, who represent Oxford in the Connecticut General Assembly, said today that the governor’s proposed taxes on the aviation industry will result in the mass migration of aircraft from Connecticut and deal a huge financial blow to Oxford Airport.
The governor has proposed allowing municipalities to tax aircraft at a statewide rate of 20 mils. A mill equals $1 for every $1000 of assessed value. Governor Malloy has also proposed removing a sales tax exemption on repairs and services to aircraft and adding an annual registration fee to planes stored in the state. To base an aircraft in Connecticut, some owners will see $11,000 annual hikes in what they currently pay. Neighboring New York, for example, has no such fees.
A public hearing on these proposals was held today before the finance revenue and bonding committee.
“If the governor wanted to see Connecticut’s aviation industry crash and burn, this is a great way to go about it,” Senator Kane said. “Hundreds of local jobs are now in jeopardy. Because the administration does not have the will to cut spending and is in fact spending nearly five percent more over the next two years, it is seeking to penalize the aviation industry. This industry has brought jobs to Oxford and surrounding towns over the past several years. But actions result in reactions, and when you tax this very mobile industry, of course they will spread their wings and fly to neighboring states – places where they can do business at a cheaper cost.”
Rep. Labriola noted that several service industry businesses have sprouted up to serve the planes stationed at Oxford Airport. He also noted that the thousands of gallons of fuel purchased in Connecticut bring in revenue from the gas tax.
“The proposed taxes would be catastrophic for Oxford Airport,” Rep. Labriola said. “Why would pilots store and maintain planes in Connecticut if they could go across the border and save substantial amounts of money for similar services? This counterproductive tax hike will essentially shut down Connecticut’s airport industry.”
Kane and Labriola urged the public to contact the governor at Governor.Malloy@ct.gov to urge him to rethink the proposed tax hikes.