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 from state and local property taxes.
Passage of the bill would eliminate approximately $2.55 million in annual tax revenue, with the majority (around $2.5 million) currently going to local schools, cities, and other entities.
The proposed tax break for private aircraft owners has generated controversy, coming shortly after the House voted to significantly reduce unemployment insurance benefits for state 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.