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Aviation Tax Change Makes Indiana Skies Friendlier

Last updated on Monday, July 8, 2013

(INDIANAPOLIS) - Corporate pilots could find Indiana a friendlier place to refuel under a change in state tax rules that could save them hundreds of dollars.

Indiana began exempting aviation fuel and maintenance and service work on planes from its 7 percent state sales tax this month. It has substituted a flat 10 cents-per-gallon excise tax for fuel purchases.

Tom McCord of Tom Wood Aviation tells The Indianapolis Star the changes could increase business for the 68 airplane maintenance shops around the state.

McCord says the tax change gives Indiana a competitive advantage for fuel sales and repairs.

Airplane owners say they welcome the tax relief.

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