Ducey vetoed late Tuesday a bill that would have exempted Papillon Airways Inc. from sales tax on aircraft purchases and leases, retroactive to 1998.
House Bill 2358 would also have exempted the owners of crop dusters from the tax. Ducey cited the unknown cost of a tax amnesty that would stretch back 17 years in his veto letter.
But Ducey also used his letter to state he doesn't want the Department of Revenue to pursue collection of sales tax from the operators of aircraft charters and crop dusters.
The GOP governor said the reprieve is needed because Papillon is still in court disputing a state Court of Appeals unanimous ruling that the business owes more than $700,000 in back sales taxes and fees. Until the legal case is resolved, or unless the Legislature rejects a bill that would give the company a tax break, it would be premature to collect on the bill, said Mike Liburdi,
Ducey's general counsel. The revenue department has said Papillon did not pay required sales taxes from 2003 through 2006. A state administrative law judge, as well as the state Tax Court and the state Court of Appeals, agreed with the agency. More AZ Central
