Aviation Repair Facilities Left With Competitive Disadvantage After Veto

October 19, 2018

Governor Snyder last week vetoed legislation that would have eliminated the competitive disadvantage Michigan’s aviation repair facilities have with surrounding states, leaving the Michigan Chamber disappointed and puzzled. Every state in the region exempts aviation repair parts from sales tax. This makes repairing an airplane outside of Michigan six percent cheaper. Based purely on Michigan's tax code, aviation repair facilities are at a severe disadvantage.

The state was expected to lose about $4 million per year in revenues if House Bill 4350-1 was passed. This represents nothing more than a rounding error in Michigan's $56 billion state budget. Aviation repair facilities hire high-paid, skilled workers - the type of jobs Governor Snyder has prioritized for several years. 

Michigan businesses must be able to compete with surrounding states. If government inhibits fair competition, Michigan cannpt reach its full economic potential.

For more information on this issue, please contact Dan Papineau at dpapineau@michamber.com