Kansas legislature considers E/AB tax exemption bill

[Jonathan Harger]

Hello everyone,

There is a bill in the Kansas legislature that would significantly benefit the homebuilding community in that state, and I'd like to get the message out. Please see the article below (which will be up on the website tomorrow) for information:

"EAA is encouraging all Kansas EAA members to contact their state representatives and request support for H.B. 2542, which would exempt homebuilt aircraft from annual property tax assessment in the state. The bill recently passed through the House Committee on Taxation and will soon go to a vote on the House floor. If the bill passes the House, it will then move to the Senate for a vote.
Homebuilt aircraft owners in Kansas are at a financial disadvantage in comparison to other aircraft owners. Currently, Kansas state law exempts “business aircraft” and aircraft older than 30 years from property tax. Because the average age of the GA fleet is older than 30 years—and newer, more expensive aircraft are most often owned by businesses—Kansan homebuilders find themselves in the uncomfortable position of being amongst the very few in the state paying property taxes to own an aircraft.
“The rate of taxation varies from county to county, but some EAA members have told us that they are taxed at a rate of 4.5 percent of the aircraft’s value every year,” said Jonathan Harger, EAA government advocacy specialist. “That means a Sonex builder/owner with an aircraft worth $30,000 must pay $1,350 every year in property tax, while a pilot who owns a 1980 model Baron worth $150,000 pays nothing. This legislation seeks to correct this inequality.”
While there is not yet a date scheduled for the bill to go to a vote on the House floor, EAA expects a vote within two weeks. Kansas EAA members can find their representatives’ contact information here."

If anyone has any questions regrading this legislation and/or how to contact representatives, please don't hesitate to call me at 920-426-6103. Thank you!

[Floatsflyer]

Jonathan,

Please excuse the benevolent ignorance of this Canadian. Airplanes are taxed as property!!?? in some of your states? In this particular case, did a very large steel building fall on the heads of those legislators during a Kansas tornado causing serious, beyond repair cranial damage. How else to explain the diverse concepts of airplane and property tax which are mutually exclusive, coming together. I'm certainly glad that I, like Dorthy, are not in Kansas anymore.

What was the rationale for this?....it goes well beyond my ability to comprehend. Then again, I'm luckily devoid of the politician gene. Good luck with the reversal of thought(?) for the E-AB community.

[Jonathan Harger]

Sir-
Your "benevolent ignorance" is completely excused. Most Americans don't live in states where cars and airplanes are taxed annually, and they are in for an unpleasant surprise when they move to a state that demands a percentage of their vehicle's value, annually, for the privilege of owning a vehicle for which they have already paid sales tax. (Most states simply charge a flat annual fee, like an automobile registration.)
We would like as many of our Kansan members as possible to reach out to their representatives in support of this legislation so that homebuilders are not left out in the open paying annual property taxes while the vast majority of other aircraft owners are exempted. We believe that this would be a more even and fair application of the tax code.

[Floatsflyer]

Jonathan, thanks and don't call me "sir", that was my father's name. :-) The irony is not wasted on me, that this absurd cash grab property tax occurs in the cradle of GA. I would have thought that the politically influencial and well connected Wichita members of GAMA would heve been vehemently opposed to such a tax and their voice would have been heard. Do you know if they lobbied against it?

[Jonathan Harger]

I would have thought that the politically influencial and well connected Wichita members of GAMA would have been vehemently opposed to such a tax and their voice would have been heard. Do you know if they lobbied against it?

I'm sure they did, and that is more likely than not why business aircraft and "vintage aircraft," meaning aircraft more than 30 years old, are exempt from the property tax. With those two categories covered, the vast majority of the GA fleet is exempted. However, neither "business" nor "more than 30 years old" applies to the majority of homebuilts--hence this legislation.

[Jonathan Harger]

UPDATE: Good news! This bill passed the Legislature and was signed into law by Governor Brownback last week. You can find a copy of the enrolled Act at http://www.kslegislature.org/li/b201...easures/sb266/.
Many thanks to all of you who contacted your representatives in support of this bill, which now goes into effect July 1.
Thank you!