Close Call In Maryland

Wisely choosing not to further pressure private aviation businesses, the Maryland legislature defeated a measure that would have imposed a 1-percent luxury surtax on aircraft costing $36,000.00 or more, plus 2 percent of amounts above $90,000. This was a wise decision (as in other close-call states) on the Eastern Seaboard given the proximity to Maryland of states such as Massachusetts, which charge no sales tax on aircraft, or Connecticut, which charges no tax on larger aircraft and exempts all maintenance activity from sales tax as well.