Approved tax exemption to benefit Winner Aviation
By CHRISTOPHER KROMER Tribune ChronicleArticle Photos
VIENNA - Becoming more competitive and providing opportunities for job growth are two key advantages of a state tax exemption for general aviation parts and repairs, a local aviation maintenance service company said Thursday.
The exemption is a provision of a $1.3 billion capital appropriations bill signed June 24 by Ohio Gov. Ted Strickland.
Effective Aug. 1, the tax exemption will bolster Ohio's aviation businesses, said Rick Hale, owner, president and chief executive officer of Winner Aviation Corp.
''It means that I can continue to operate my maintenance facility in Ohio and be competitive,'' said Hale, whose company operates at the Youngstown-Warren Regional Airport in Vienna. ''I have the benefit of not having to charge sales tax on parts and labor.''
In a news conference held at the airport to explain the exemption, Hale said his company of about 65 employees can focus on growth rather than competitiveness.
''We're already looking for three more mechanics,'' Hale said.
Overturning the sales tax also will help reverse the flow of plane owners taking their aircraft out of state to receive repairs, a local lawmaker said.
''The tax was hurting the state. These owner-operators were taking their planes to other states and saving between $20,000 and $40,000 per repair,'' said state Rep. Sandra Stabile Harwood, D-Niles.
The exemption helps Ohio create and retain jobs at its 113 FAA-certified aircraft repair stations, Christopher Litton, president of the Youngstown Warren Regional Chamber of Commerce Foundation, said.
''In Ohio, there are over 17,000 jobs in general aviation,'' Litton said. ''The savings will be between $12 (million) and $15 million annually for the state's facilities.''
State Sen. Capri Cafaro, D-Hubbard, said by telephone Thursday, ''I'm very, very pleased that the administration and the Department of Development realized the importance of removing the aviation maintenance tax as a way of creating economic opportunities.''
The Ohio Department of Taxation said the sales tax exemptions will amount to an estimated $5.5 million per year, according to Keith Dailey, press secretary for Strickland.
Tribune Chronicle reporter Ron Selak Jr. contributed to this report.
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VoiceOfReason
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07-18-08 11:24 PM
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Smart move. That's about the only way you can spark business at the Youngstown airport.
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