President's Message
Matt Fitch, TAAA 2010 President
TAAA – Implications of Legislation Passed During 81st Texas Legislature
The 81st session of the Texas Legislature was an overwhelming success for agricultural aviation operators in this state. TAAA’s top priority for the legislative session was accomplished with the passage of S.B. 958 by Senator Glenn Hegar and Rep. Joe Heflin, which clarifies the application of the sales tax exemption for airplanes and equipment used in spray plane operations. Rep. Yvonne Gonzalez Toureilles also passed legislation containing the language supported by TAAA. Texas law has long exempted machinery and equipment used exclusively in the production of agricultural products from the state sales and use tax. The comptroller’s office has long held that such an exemption extends to airplanes used in spray operations. However, there was some concern that the federal definition of agricultural aviation operation was broader in scope than the state’s definition used in the Tax Code. As a result, some activities that could have been considered within the scope of an agricultural aviation operation in the eyes of the FAA could have resulted in the forfeiture of the agricultural exemption for sales tax purposes, resulting in tens of thousands of dollars owed in back taxes for airplanes and equipment purchases.
TAAA worked with legislators to develop language that would clarify the agricultural exemption by tying the exemption to the federal definition of “agricultural aircraft operation” used by the FAA. The federal definition defines the term as “the operation of an aircraft for the purpose of (1) dispensing any economic poison, (2) dispensing any other substance intended for plant nourishment, soil treatment, propagation of plant life, or pest control, or (3) engaging in dispensing activities directly affecting agriculture, horticulture, or forest preservation, but not including the dispensing of live insects.” Federal law further provides that “economic poison means (1) any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any insects, rodents, nematodes, fungi, weeds, and other forms of plant or animal life or viruses, except viruses on or in living man or other animals, which the Secretary of Agriculture shall declare to be a pest, and (2) any substance or mixture of substances intended for use as a plant regulator, defoliant or desiccant.”
S.B. 958, which takes effect September 1, 2009, amends the Texas Tax Code to provide that any activity described under the federal definition is an exempt use for state sales tax purposes. As a result, any questions regarding the tax status of activities such as spraying on grass or forest fires, as well as applications for mosquito control, are resolved. Under the new law, such activities will clearly be entitled to the agricultural exemption, as they fall within the federal definition of agricultural aviation operation. The legislation eliminates any lingering confusion about the agricultural exemption as it applies to agricultural aircraft operations, and its passage is a tremendous success for TAAA and its members.
New CEU Guidelines
The Texas Department of Agriculture recently revised its CEU requirements for aerial applicators seeking to renew their license. Effective on January 1, 2009, three of the five required CEU’s must be associated with aerial application operations, and must include one hour each in laws and regulations, drift minimization, and pesticide safety activities addressing human factors. (Rule 7.24(t) in the Agriculture section on the Texas Administrative Code). TAAA strongly supports this rule change. We believe that this change will help save lives and reduce property damage from accidents.
NAAREF offers PAASS in Texas
The National Agricultural Aviation Research & Education Foundation (NAAREF) has agreed to offer its pilots safety and training program two additional times in Texas in 2010. This is the identical program that is offered at the annual TAAA Convention, and is about in 30 other States around the country each year. You can register online or download a pdf registration form for the next Texas PAASS presentation that will be held in College Station on March 5th by clicking here. Please visit www.agaviation.org/paasspage.htm for more details on the PAASS Program.
TAAA Ag Air PAC endorses Gov. Rick Perry for re-election
AUSTIN – Gov. Rick Perry today received the endorsement of Ag Air PAC, the political action committee of the Texas Agricultural Aviation Association, for re-election in 2010.
“Throughout his tenure as our state’s Agriculture Commissioner, Lt. Governor and now Governor, Rick Perry has been an unwavering advocate for rural Texas,” said Matt Fitch, President of the Texas Agricultural Aviation Association. “He understands and supports the role that our industry plays in producing the food we eat, and has consistently supported our efforts to ensure the safety of consumers as well as pilots who fly spray planes. Ag Air PAC is proud to endorse Gov. Perry for re-election.”
The Texas Agricultural Aviation Association is the state’s leading trade association for pilots and operators of agricultural aircraft operations.
“I’m honored to receive the endorsement of the Ag Air PAC and proud of the work that has been achieved to keep our agriculture industry at the forefront of the nation,” said Gov. Perry. “The agriculture industry is a foundational component of our state’s heritage and economy, and I am particularly proud of recent efforts to pass unprecedented protection for Texas property owners, which was approved by voters through Proposition 11 last year. I remain committed to ensuring stakeholders in this industry have the necessary tools to thrive and provide Texans the food and goods they depend upon every day.”
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TAAA Members Promotion
For every gallon of surfactant purchaced, AgPro Systems and The Soil Man will donate $1.00 to the WTAAA Scholarship Fund. Please click here for further company and product information
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