NetJets To Lawmakers: Restore Tax Exemptions Or The Firm May Relocate
Aviation companies, including Columbus-based NetJets, are asking the Ohio Senate to restore tax exemptions they say help them compete.
And NetJets has also threatened to relocate. At issue are exemptions related to the sales of planes where multiple owners share the purchase and maintenance costs. The House version of the two-year state budget proposal removed the exemptions. Ohio Public Radio's Jo Ingles reports.
The Executive Vice President of NetJets, Bradley Ferrell, urged senators to think twice.
“NetJets would either have to pass this tax obligation through to its customers which would adversely affect NetJets competitiveness by increasing the price of its products or alternatively, it would have to incur the tax impact itself thereby negatively affecting its profitability. Neither of these options would be palatable to NetJets long term. Instead, NetJets would be forced to consider other states with more favorable sales tax environments. And there are plenty.”
But Democratic Sen. Nickie Antonio noted Ohioans pay more than 7% sales tax.
“So why is it that NetJets shouldn’t pay almost as much as everyday Ohioans pay for their sales tax?”
Ferrell says NetJets pays other taxes and has 2400 good paying jobs and could take its business to any one of 14 other states that exempt or greatly reduce sales taxes.