A bill has been introduced in the Massachusetts legislature that would remove the existing sales and use tax exemption for aircraft. The bill was introduced by Representative Cory Atkins of Concord. Massachusetts does have sale and use taxes – but provides an exemption for aircraft (Massachusetts General Laws, Chapter 64H, §6(vv)). Per the bill, that exemption would be limited, effective August 1, 2011, to sales of aircraft “to certificated or licensed carriers of persons or property, for compensation or hire, in interstate or foreign commerce under authority of the laws of the United States or any foreign government, or sold to any foreign government for use by such government outside of this state, or sold to persons who are not residents of this state and who will not use such aircraft in this state otherwise than in the removal of such aircraft from this state.” In addition, there is language in the bill that seems to imply that the Massachusetts Department of Revenue will adopt rules imposing tax on transfers of fractional interests in aircraft. A hearing on the bill is scheduled for May 12 (Thursday) from 10:30 AM to 2:30. This bill was introduced in January 2011, but, until now, it had not generated much attention. That likely will change with increasing scrutiny of “tax expenditures” of all kinds in Massachusetts.