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Sales Tax Exemption on Liftoffs May Be Lifted

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From Times Staff and Wire Reports

A sales tax on launches could hurt commercial space launches from Vandenberg Air Force Base.

Exemption from the tax for satellite and other commercial launches may fall victim to the state’s budget troubles. The California Space Authority notified its members of the “threat” to the exemption for commercial space missions, and it urged them to contact elected officials.

Eric Daniels, director of state and local government relations for the California Space Authority, said the commercial space incentive was among sales-tax exemptions cited by lawmakers looking to balance California’s budget.

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A launch sales tax would add about $8 million annually to state coffers, or about $1 million per liftoff.

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