The bill S.246, introduced by Senator Collamore, aims to amend the current sales and use tax laws in Vermont by extending the tax exemption for aircraft to include noncommercial aircraft. Specifically, it removes the requirement that aircraft must be sold to a person engaged in air commerce for compensation or hire to qualify for the exemption. Additionally, the bill introduces a new provision that establishes a business personal property tax for noncommercial aircraft, while ensuring that aircraft not primarily used for commercial operations are exempt from property taxation.

Furthermore, the bill mandates a study by the Commissioner of Taxes, in collaboration with the Agency of Transportation, to assess the feasibility of sharing revenue generated from air commerce with Vermont airports. This study will evaluate the capacity to identify and share sales and use tax revenue, property tax revenue from airport-related businesses, and the potential for creating dedicated funds for specific airports. The findings of this study are to be reported to relevant legislative committees by December 15, 2026, and the act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 32-9741