Stol wrote:Congrats on getting it 1/2 way there... Hopefully you have a good sponsor to the bill on the senate side...
Ben.
Ben, thanks for your words of support. I just returned from the state capital. It did not go well in the Senate tax committee. Here is the short email I am sending out to those who supported our effort.
HB 1209 exempting homebuilt aircraft from taxation on the parts to build them, went down in the senate tax committee this morning with a motion from those opposed to the tax exemption making a motion to defer to the 41st day, then passing that motion 4 to 1 (two members absent) which effectively kills the bill as South Dakota has a 40 day legislative session.
The mood of the senate committee was supportive to the governors tax division argument that there should be no exemption to sales tax as funds are short. They need money, no exception and no reason is good enough to get an exemption. Under laws already on the books, had the aircraft builders built a hot rod from scratch instead and applied for a new vehicle title (just as an aircraft homebuilder would do) , they would have gotten credit for sales tax they paid on the parts used to build it and that amount would have been deducted from their vehicle registration fees. That one has been on the books for a long time, they just aren't going to give homebuilt aircraft the same thing. They want the money.
Those currently building aircraft and those with registered and flying homebuilts, regardless for how long, should get ready to be hunted down like dogs in the coming years as the state tax division doesn't know yet how far back they will go to start collecting tax on those aircraft.
The bill sponsor of the exemption has said he will try again next year when the struggle for tax revenue might not be so desperate.
We fought the good fight.
