Connecticut Governor Dannel P. Malloy wants to close the state deficit by ending tax exemptions on repairs and services to aircraft, and by adding a yearly registration fee to planes stored in the state. This is problematic for general aviation, and for Connecticut for that matter, for several reasons. First, Connecticut exempts the purchase and storage of aircraft exceeding 6,000 pounds CTW from sales and use tax, and exempts repairs and the associated parts sales from the same. This has been a boon for Connecticut when it comes to New Yorkers, among others, looking for an economical place to store and service their aircraft, which, of course, can be moved elsewhere much more easily than a yoga studio. The Governor might also consider revisiting the geography of the Northeast. Larger aircraft owners, weighing the costs and benefits of storing their planes in other states, have other alternatives within the same geographical area. A slightly higher inconvenience may outweigh the dramatically increased costs of doing business in Connecticut. The Governor should look beyond the next fiscal year in evaluating what might be the long term impact on the state of eliminating these popular and useful exemptions.
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