SB 1030 - Sales tax exemption for aircraft maintenance

SB 1030 expands a current sales tax exemption on aircraft parts by removing existing limits on who owns the aircraft. Today, only commercial carriers and flight schools get this tax break. This bill would extend the exemption to any aircraft—including private, corporate, or recreational planes—if parts are permanently installed or consumed in operation. While supporters claim it will boost aviation maintenance activity in Texas, it’s a broad giveaway with no clear accountability. The change would cost the state nearly $17 million over two years and over $45 million over five years, with millions more lost by cities and counties. From a fiscally conservative standpoint, this is a special interest carve-out that erodes the sales tax base without delivering relief to everyday Texans.