MANASSAS — Airplane owners and repair shops will get a tax break.
Small airplane small repair shops and larger maintenance, repair, and overhaul aircraft facilities commonly referred to as MROs will get a break when they purchase parts, supplies, or engines to maintain an aircraft. Delegate Richard Anderson, an Air Force Colonel and former head of the Civil Air Patrol introduced the legislation during this year’s General Assembly.
The new law is expected to have an impact on economic development in the state and our region. Many airplane owners traditionally fly out of state to places like North Carolina for regular aircraft maintenance or repair.
“I am very proud to have worked with my partners in the General Assembly, the Virginia Aviation Business Association, and Aircraft Owners and Pilots Association in crafting this legislation. Virginia is home to several thousand general aviation aircraft, but has few major maintenance and repair operations,” said Anderson.
The state could see more than $1 billion in new business, stated Anderson, citing a PricewaterhouseCoopers report.
The new law will bolster efforts by Manassas Regional Airport to attract new repair facilities to the municipal airfield, the largest in the state.
“Now I have a better story to tell,” said airport director Juan Rivera. “When I travel out of state and talk about bringing business to the airport, the first question I get is “what is your tax rate?”
The sales tax rate in Northern Virginia is 6%. The tax break begins July 1, 2018, and lasts until July 1, 2022.
Manassas Regional Airport is home to two fix-based flight operators, the APP Jet Center and Dulles Aviation.