Berkshire Hathaway’s NetJets will lose tax breaks for fractionally owned aircraft if a provision in the Ohio’s state budget proposal becomes law.
The tax breaks also benefits its Cleveland-based competitor, Flexjets.
The repeal proposal, which was included in the latest House budget package, removes the cap on sales taxes of fractionally owned aircraft that was enacted in 2003 that is currently set at $800.
Also repealed would be a tax exemption for sales of property and services to maintain and repair fractionally owned aircraft.
According to the State Department of Taxation’s Tax Expenditure Report, the repeal of the $800 sales tax cap would bring in an additional $14 million a year.
© 2019 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.