NYAMA: Unleash the Job Creating Power of the Aviation Industry!

ALBANY, NY (03/01/2011)(readMedia)-- The State's aviation industry, represented by the New York Aviation Management Association (NYAMA), this week called on State legislators to provide adequate funding levels in the State budget to help airports and made an urgent request for aircraft tax reform in order to bring more business jets and jobs to New York.

NYAMA President Carl Beardsley was in Albany to testify before legislators at a joint Senate and Assembly hearing on the 2011-2012 Executive Budget proposal.

NYAMA is concerned about the absence of capital funding in the transportation budget for airports. "Without this critical State financial investment, important projects that increase safety, strengthen security, enhance customer convenience and generate revenues to sustain airport service cannot go forward," said Beardsley, who is also the Broome County Commissioner of Aviation for the Greater Binghamton Airport. Underfunding aviation "will cost the State dearly in the short and long term in lost economic growth, job loss and in some cases, threatening the availability of air service in some regions of the State," Beardsley warned.

In addition to advocating for important airport infrastructure funding, NYAMA urged lawmakers to adopt the Aviation Jobs Act-legislation to reform the State taxation of aircraft so that New York can better compete for aviation business with neighboring states.

"A number of neighboring and nearby states, including Massachusetts, Connecticut, New Hampshire, Rhode Island, New Jersey and Delaware currently provide sales tax relief or more-favorable tax treatment for the purchase of aircraft," NYAMA reported. "A real winning strategy to bring in new, sustainable jobs and enhance revenue to the State is to extend the proven job-stimulus effort that was enacted for general aviation maintenance and repair services to include the purchase of aircraft," Beardsley argued.

NYAMA proposes that the legislature allow the industry to demonstrate the ability to create jobs for the State by suspending the sales tax on the purchase of general aviation aircraft for the next five years in order to eliminate the financial penalty for locating these planes at New York airports. "This will position the State to take full advantage of the national recovery in business aviation that is just now getting underway," said Beardsley. Each plane or business jet represents on average four jobs and $1 million of annual economic impact, according to a recent study.

After the exemption period, the State Tax Department would report on the result. "If the temporary tax exemption performs as we expect, the Legislature can make the exemption permanent. If not, the exemption could be allowed to expire," Beardsley suggested. "Considering our experience with a similar tax reform on maintenance and repair," NYAMA believes success is a safe bet. The basing of more of these aircraft here will mean more high-quality permanent jobs for New Yorkers and more revenue for the State.

"New York should adopt a strategy to fully exploit the potential of New York's airports and aviation industries as drivers of new, high-quality and sustainable jobs, and to attract greater private sector investment," Beardsley concluded.

NYAMA has been the Voice of Aviation in New York for 34 years and represents over 120 airports and aviation organizations across New York. Its diverse membership includes small general aviation airports as well as large hub airports and professionals supporting every part of the aviation industry.