Silverlode's industry study led to legislation that made Ohio more competitive in the aircraft industry.
The Ohio Commercial Airports Consortium (OCAC), an association that represents Ohio’s six commercial air carrier airports, was concerned that a proposed change in tax policy for aircraft repair and maintenance activities would place Ohio at a competitive disadvantage to surrounding states. OCAC engaged Silverlode to conduct an aircraft industry competitiveness study.
By conducting a thorough analysis and comparison of the aircraft industry tax structures in Ohio and surrounding states, Silverlode determined that while Ohio had established sales taxes on maintenance services and parts, other States had eliminated these taxes. We analyzed employment data and economic output and established that Ohio had seen a decline while surrounding states, which offered the tax exemption, had experienced growth. Further analysis concluded that the taxes arising from increased industry activity would more than offset the revenue lost by the tax exemption.
Silverlode's industry study was so compelling that within weeks of the release of our findings, the State of Ohio passed legislation that exempted both repair services and parts from the sales tax and placed the Ohio aircraft industry on equal footing with its competing states.