Let me be very honest and candid about this - when I first read about the proposed airplane tax cut, I was not happy (just say it, I was mad!). I thought that it was ludicrous to consider cutting tax revenue while counties are already struggling due to decreased sales and collections of local taxes.
However, unlike many people in today's culture, I didn't take to social media to start talking about how stupid the idea was and how much I disagreed with. Instead, I started doing some research. I looked up some information, asked some questions, had some conversations, and I learned some things.
This was important for me to understand because I own a boat (I consider planes and boats luxury items) and pay Union County property taxes. However, that boat hasn't been in Union for years. It's housed and operated in a neighboring county. There's not even anywhere that I can safely and legally operate my boat on public property in Union, yet I still have to pay a tax here. Now don't get my wrong, if I had the option of where to pay (tax dollars equal), since I'm a Union resident, I would prefer to see my tax dollars invested here rather than in Newberry. But is that fair to Newberry? It's their lake, their water, and their roads that the boat utilizes.
But back to the taxing aspect - how the tax code is written is a state level issue, not a county one. I don't like that airplanes are taxed at your residence OR where it's housed (seemingly at the owner's discretion). It seems to me that luxury/recreational vehicles should logically all be treated the same. Either tax them based on location or tax them based on residence. But again, that's a state rule and not county one so don't blame them for that. Talk to your Senate and House Members about adjusting that.
Now for the numbers. I'll try not to get too bogged down here but still share the information that was shared with me. The tax reduction on airplanes will cost Union County approximately $1,500. The increase in hangar rents will increase county revenue by approximately $6,500. The net result to Union County right now will actually be approximately a $5,000 increase in revenue. That's back of the envelope math and I trust that someone on council or with the County could help share more specifics if called upon.
The big win is in the potential. Our airport has expanded and become a hidden little gem for our County. From what I've researched, the government isn't approving or building anymore right now. Union has one, that means we have an asset that some counties will not be getting in the foreseeable future. This is where the potential comes in. If a corporation, let's a say Timken, Gestamp, Standard Textile, or any other company was to purchase a plane and house it here in Union, they would pay taxes on it here. That likely wouldn't have happened without the tax cut.
Let's think through this using my boat as an example. If I was given the option of paying $100 taxes in Union County or $40 taxes in Newberry County, which do you think I would choose? I love Union and all, but I have to provide my family first and I can save us $60 - here you go Newberry.
We've removed that obstacle now from companies investing in our County and actually figured out a way to do it that it wouldn't negatively impact the bottom line by increasing hangar rents to offset it.
While I was initially not a fan (more like a hater) of the tax cut, if it all plays out the way it appears to be structured now, I can get on board. As for the location of the taxes, I do think the state needs to address that issue but that's not under the county jurisdiction.
I hope this sheds some light on the airplane tax for others, as it did for me, and hope that the information that I have been provided is accurate. However, I do leave it open for anyone with official insight and information to correct me or share additional information if something I've stated is incorrect.
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