Tax on Aviation Sales Questioned

The general manager of Garrett Aviation is making it his mission to repeal Georgia’s sales tax on aviation sales and services.

Chris Swan spoke Tuesday to members of the Aviation Commission’s economic development subcommittee, hoping to get the commission’s support on the proposal as he moves up the chain of governmental agencies.

Georgia is losing business to Florida, Arkansas and other tax- free states by charging 7 percent sales tax on labor or parts for private aviation businesses, Mr. Swan said.

“I’ll take them on any day,” he told the commissioners and Augusta Regional Airport Director Buster Boshears, “but that’s a tough one to get over … The fact that we have these taxes puts us at a competitive disadvantage.”

Aircraft sales are not taxed in 28 states, including South Carolina and Tennessee, Mr. Swan said. and his research shows the revenue the state generates is less than revenue lost when aviation business shifts out of state.

“So it’s not like we’re trying to take away the tax and not pay back the money,” he said. “We want to replace revenue from the sales tax with revenue from growth.”

Supporting the idea could reap rewards for the airport, too, Mr. Swan said. Because a large percentage of his clients fill up on gasoline sold by Augusta Regional, Mr. Swan anticipates increased fuel sales for the airport.

He also said he thinks Augusta Aviation Inc., the Daniel Field- based company that sells aircraft and offers charter air service, also could benefit from the sales tax repeal.

After his presentation, Mr. Boshears said he strongly agrees with Mr. Swan’s points.

“His competition is in Florida, out in Kansas, Arkansas – which are all tax free,” he said. “And a typical job could easily bring in several hundred thousand dollars.”

WHAT’S NEXT Chris Swan will present his idea of repealing Georgia’s aviation sales tax to the full Aviation Commission in August and then to the Augusta Commission, whose members will hopefully pass it on to the legislative delegation in Atlanta for consideration, he said.