Idaho Governor Signs Bill That Exempts Sales Tax on Installed Aircraft Parts

Western Aircraft, a Greenwich AeroGroup company, announced that Idaho Gov. Butch Otter has signed bill H.417, which exempts sales tax on aircraft parts installed on out-of-state aircraft. Because of the emergency clause included in this legislation, this bill becomes law immediately.


“This is an excellent piece of legislation that creates a net financial gain for the state of Idaho,” said President of Western Aircraft Jeff Mihalic. “It immediately levels the playing field and will create good paying aviation jobs at Western Aircraft and at many of the other FAA approved repair stations in Idaho.”


Western Aircraft has been trying for three years to influence this change in the state law as Western’s primary competitors currently operate in states that do not tax aircraft parts installed on aircraft during maintenance. Because of this legislation, Mihalic says Western Aircraft can attract business that is now performed in other states and perform that work in Idaho.


“Western Aircraft has committed to add 100 jobs over the next five years and make significant investments in our facilities as a result of this legislation. To meet the expected demand, we have already created 12 new positions to be filled by new full-time employees in the coming months.”


Rep. Frank Henderson, who introduced the bill this year, along with numerous other representatives and senators, were instrumental in gaining widespread support of this initiative. Before arriving at the governor’s desk for signature, the bill was passed by both the House and Senate with no opposition.


“This is a big win for our customers and it’s a big win for the state Idaho,” said Mihalic.


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