Bill Repeals State Tax Aircraft
Manufactured in Colorado
DENVER—Today the Senate Finance Committee passed HB08-1261, sponsored by Senator Bob Bacon (D-Fort Collins) to repeal state sales tax on an aircraft manufactured in Colorado and sold to buyers outside the state.
Colorado was formerly a leader in the aerospace industry, but in recent years aircraft manufacturers and their high-paying high-tech jobs have left the state in search of more favorable business environments.
“We want to reverse that trend in Colorado by creating incentives for the aerospace industry to grow,” Bacon said. “This bill is part of a package of bills aimed at revitalizing this sector of our economy.”
Currently, a newly-manufactured aircraft is subject to both sales and use taxes in Colorado. To avoid paying sales tax, some sellers would fly new planes out of Colorado to sell them, which proved too costly and cumbersome for aircraft manufacturers.
The bill next moves to the full Senate next for consideration.
