As is already well known, the aviation and aerospace industries contribute heavily to the state of New Mexico. The Alliance for Aviation Across America recently estimated that general aviation in New Mexico brings in an average revenue stream of more than $750 million (equaling more than $375 per capita) to the state’s economy.
During the most recent legislative session, two significant and favorable bills were passed by both chambers of the legislature and were recently signed by Governor Martinez.
House Bill 14 established the exemption from gross receipts tax for all aircraft parts and maintenance labor. Since these taxes ranged from 5.125% to 8.6875% (depending upon location), this exemption creates attractive opportunities for many companies within the aviation and aerospace industries. Since most neighboring states have already granted similar exemptions, this new law now place New Mexico on a level playing field, and when factoring in other benefits of relocating to New Mexico as compared to surrounding states, many group consider this as a major coup in attracting new businesses to the Land of Enchantment.
Both chambers also passed for approval House Bill 24, which provides a gross receipts tax exemption for aircraft exceeding 10,000 take off weight sold to either military or commercial carriers. Once more, this logical and business-positive approach indicates that New Mexico understands the importance of attracting new business to the state.
The board members of New Mexico Aviation Aerospace Association worked closely with groups and representatives to communicate the desire and will of the people and the legislative body listened and responded to the wishes of the majority of New Mexicans. We encourage any pro-business individual or organization to become a member of New Mexico Aviation Aerospace Association to help support our continuing efforts in improving both the economic and employment pictures in our state.