As my colleagues pointed out in an overview of the 2015-2016 budget bill, somehow this exemption has generated less fanfare than the new use tax rules on yachts, but these aircraft rules actually go beyond what the new yacht rules will accomplish.
On September 1, 2015, when the new rules and exemption for “general aviation aircraft” go into effect, maybe the level of excitement will change. Air traffic controllers should be ready, because the skies and—more importantly—runways and tarmacs in New York will be truly friendly. This new rule, like me, is kind of a big deal. A bigger deal, though, is the potential for new jobs and revenue associated with folks and companies hangaring, servicing, and selling general aviation aircraft in New York, and the influx of employees based in and new jobs moved to New York, where in the past people and companies may have been afraid to land a plane on a New York runway. Indeed the aviation industry appeared to be a driving force behind lobbying for the exemption.
If you’re considering bringing one of these planes into New York for the first time in the next few weeks or purchasing one of these planes in New York in the near future, consider another plan. By landing in New York, we don’t think you should automatically incur New York use tax on the plane, but you can probably avoid a shocking audit or assessment notice from the New York Tax Department if you can hold out just a bit longer.
