Alabama Gov. Bob Riley says that aviation businesses operating in Dothan, Mobile, Birmingham and Andalusia are threatened by a state tax law.
The House Education Appropriations Committee held a public hearing today on House Bill 468, which is supported by Gov. Riley and is sponsored by Representative Terry Spicer. It would change current state law to exempt from sales and use tax the commercial aircraft that enter the state for maintenance and repair.
In a press release, Riley said, "creating and keeping jobs should be the Legislature's top priority. We've been trying to get this bill passed for at least two years now. Delaying it does nothing but hurt Alabama's ability to protect these jobs and create new jobs in the growing aviation field."
Alabama is home to several businesses that perform maintenance, repair and refurbishing for commercial aircraft.
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Neal Wade, director of the Alabama Development Office, told committee members passage of the bill could help the state retain about 2,000 jobs in the aerospace industry and be in a better position to compete for new jobs.