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Encourage Arizona State Legislature To Vote On Aircraft Exemption Bill

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The aviation industry offers many economic benefits in the state of Arizona.  In addition to wages and benefits to nearly 7,000 workers, the industry generates nearly $609 million in economic activity on an annual basis.  The Arizona legislature will soon vote on House Bill 2358 making clear aircraft used in commercial service, including aircraft operated under Part 135 of the Federal Aviation Regulations (FAR), exempt from transaction privilege and use tax.  The National Business Aviation Association (NBAA) encourages all members to support the measure which has already passed the House.

According to “Arizona Legislature Passes Commercial Aircraft Exemption,” posted on, this key Arizona law was originally intended to exempt all carriers of passengers and property, including Part 135 operators, from the transaction privilege and use tax.  Many Arizona charter operators have already indicated that they may need to relocate business operations from Arizona into other states that offer commercial aircraft exemptions that cover those specific Part 135 operations.  In addition, a 2012 report indicates that general aviation supports 6,890 jobs in the state of Arizona, which sustains a payroll of $261 million annually.  These Part 135 operators provide critical services, including air ambulance flights and fire-fighting support, all necessary public services to the local communities.

Aviation businesses can also find support with the deployment of a powerful enterprise resource planning (ERP) solution, such as Microsoft Dynamics® GP.  You can manage all of your business operations from a single, integrated solution including financials, inventory and supply chain, service and other maintenance activities, and other core business processes.  When combined with CORRIDOR, an aviation industry software solution, you can streamline data entry and be confident that you have reliable information at your fingertips when making the decisions that drive growth.

The aviation industry connects communities and businesses, provides commercial and critical services, and is an important part of the state of Arizona economy.  We encourage Arizonians to support the Aircraft Exemption Bill.  Contact Sherwood Systems for more information about the aviation industry and how to manage a successful operation with the support of an ERP solution.

By Sherwood Systems, Arizona Microsoft ERP and CRM Partner

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