Kentucky Considers Giving Some Aircraft Owners a Tax Break

Jonathan Welsh

Tuesday, February 15, 2022 at 06:48 PM ET

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State Reps. Jonathan Dixon, Daniel Fister, and DJ Johnson sponsored the proposed bill. [File Photo: Adobe Stock]

Key Takeaways:

The Kentucky House of Representatives is considering a bill to exempt personal aircraft, not used commercially, from state and local property taxes.
This proposed tax break would eliminate approximately $2.5 million in annual revenue for local entities (like schools and cities) and an additional $50,000 for the state treasury.
The bill has generated controversy as it comes on the heels of the House voting to reduce unemployment insurance benefits for jobless residents.

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The Kentucky House of Representatives is considering a bill that would make personal aircraft exempt from state and local property taxes.

Passage of the bill would result in a tax break for private airplanes and helicopters that are “not used in the business of transporting persons or property for compensation or hire,” according to language in the bill. Owners currently pay 1.5 cents per year for each $100 of the aircraft’s assessed value.