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Wednesday, 19 November, 2008

Aviation Tax Increase Possible In Loudoun County, Virginia


November 19, 2008

What’s at Issue
The Loudoun County Board of Supervisors, in Loudon County, Virginia, is considering raising the tax rate on aircraft to increase revenue for the Fiscal Year 2010 budget.  Loudon County Supervisor Kelly Burk advised the aviation community about the potential tax increase out of concern for the effect it would have on Leesburg Executive Airport as well as Dulles International Airport, both located in Loudoun County. 


Why It’s Important
Loudoun County is home to eight aerospace companies, including Rockwell Collins, AeroAstro, and Orbital Sciences Corp.  In 1994, the board of supervisors passed an Economic Development Plan and Growth Strategy that allowed the use of tax breaks to stimulate growth in a specific industry, such as aerospace.

This was not the first time the county used tax breaks for recruiting industry clusters.  The county had lowered the tax rate for aircraft and aircraft simulators to encourage activity around Dulles Airport.  Now that Loudoun County is flourishing, the county would like to gain revenue from profitable sources in the county.  The potential rate increase could be as much as $4.20 per $100.  The current tax rate is $.01 per $100. 


What to Do
Contact the Loudoun County Board of Supervisors to express your concern, highlighting the negative effects this significant tax increase would have on the general aviation industry.

Letters to the board of supervisors may be sent to:

Loudoun County Board of Supervisors
Harrison Street, S.E.
Fifth Floor
P.O. Box 7000
MSC #01
Leesburg, VA 20177-7000

The following list of supervisors is provided by county, if you wish to direct your correspondence by email:

Scott K. York (Chairman At-Large)  scott.york@loudoun.gov
Susan Kilmer Buckley (Sugarland Run)  susan.buckley@loudoun.gov
Kelly Burk (Leesburg)  supervisor.kelly.burk@loudoun.gov
Jim Burton (Blue Ridge)  jim.burton@loudoun.gov
Eugene Delgaudio (Sterling)  edelgaud@loudoun.gov
Sally R. Kurtz (Catoctin)  sally.kurtz@loudoun.gov
Andrea McGimsey (Potomac)  andrea.mcgimsey@loudoun.gov
Stevens Miller (Dulles)  stevens.miller@loudoun.gov
Lori Waters (Broad Run District)  lori.waters@loudoun.gov

County Web site - www.co.loudoun.va.us


NATA Position
NATA is concerned that a new personal property tax increase on aircraft would present an enormous financial strain for Leesburg Executive Airport and Dulles International Airport.  The association has received numerous calls from businesses in Loudoun County expressing their concern about the proposal and how it will surely force their customers to relocate their aircraft to airports outside of the county.


Status
The county tax rate options for aircraft will be published in February 2009, prior to the public budget hearing to be held in March. 


Staff Contact:
Kristen Moore
Director, Legislative Affairs
NATA
kmoore@nata.aero 

For general press inquiries, contact Shannon Chambers at 703-298-1347 or schambers@nata.aero

The National Air Transportation Association (NATA) has been the voice of aviation business for more than 80 years. Representing nearly 3,700 aviation businesses, NATA’s member companies provide a broad range of services to general aviation, the airlines and the military and NATA serves as the public policy group representing the interests of aviation businesses before Congress and the federal agencies.