Aircraft operators in Illinois are responding to reports that their state is proposing a 5 percent luxury tax on aircraft valued at $500,000 and up. The tax would be in addition to state and local use taxes already in effect. Aviation advocacy groups have been quick to respond. The National Business Aviation Association, for example, wrote that the tax “fails to recognize the essential role of business airplanes to companies by treating them as a luxury for tax purposes.”
Illinois Proposes General Aviation Luxury Tax
