MADISON, Wis. (AP) – Aviation companies in Wisconsin would be exempt from having to pay sales taxes on aircraft maintenance parts and labor under a bill that has passed the state Senate.
The Senate voted 24-8 on Tuesday to pass the bill.
It would benefit companies like Gulfstream in Appleton and Cessna in Milwaukee. Those companies and others say having to pay the sales tax puts them at a competitive disadvantage because aircraft owners are taking their business to other states that don’t charge the tax.
Bill sponsor Sen. Mike Ellis, a Republican from Neenah, says the tax cut would cost about $3 million a year in lost revenue, but it would generate more than twice that much in increased business for the aviation companies.