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"NM airport nixes tax on hangar rentals"



Thursday, August 2, 2012

Alamogordo airport nixes tax on hangar rentals
By John Bear
The Alamogordo (NM) Daily Sun-News


The city of Alamogordo discontinued a 2 percent tax on hangar rentals at
Alamogordo-White Sands Regional Airport that only one person was actually
paying. 

"This came out at the last two or three airport advisory board meetings, and
it's related to an inconsistency on how we are charging a 2 percent tax,"
airport coordinator Randy Hill said. 

According to city documents prepared by Hill, the issue came up for
discussion several times at an airport advisory board meeting. Discussion
revealed that the tax is not assessed on rental properties in the city other
than at the airport. 

It was unclear whether the city intended to assess the tax on any and all
hangar rentals or if it was supposed to be only for rentals of hangars owned
by commercial permit holders, documents show. 

Commercial permit holders are required to pay 2 percent of gross income
generated by their commercial activities at the airport. However, renting
hangar space is not currently considered a commercial activity and no
commercial permit is required from the city to rent a hangar, documents
show. 

Hill said that he was only able to confirm that one person was paying the
tax. 

The Alamogordo City Commission voted to repeal the tax in a unanimous vote.
District 3 Commissioner Robert Rentschler abstained from voting. 

In other airport-related news, the commisson approved a request by Tim
Rabon, owner of Trabon LLC, to acquire a piece of a hangar leased by another
person. The area in question is too small for airplane storage, and in the
past has been used for storage of personal items, which is not the intent of
the city ordinance, according to a city agenda report.

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