NM legislators propose sales tax on Virgin Galactic tourist flights
We’re here to help you: A bi-partisan proposal by two New Mexico legislators would create a 6% to 9% sales tax on any Virgin Galactic space tourist flights that take off from Spaceport America.
“If the flights really became regular, that could be a nice source of income, not only for the state but also from the GRT shared with the local communities,” [one of] the bill’s … sponsors, Democratic Rep. Matthew McQueen, said.
…”I can’t think of a particularly good reason why we wouldn’t tax this activity,” McQueen said.
McQueen might be too stupid to think of a reason, but I can think of dozens, and they are called the many other airport runways across the globe where Virgin Galactic can launch tourists and bypass this tax. The company already has agreements with several.
The stupidity of this legislative proposal at this time is compounded in that Virgin Galactic, the only customer Spaceport America presently has, is struggling badly. It has yet to fly any commercial flights, and is facing investor lawsuits and an aging fleet. Adding a tax on top of these problems could kill it, thus making this bill a perfect example of killing the goose that laid the golden egg, before the goose is even born. Moreover, it will certainly discourage anyone else from launching from New Mexico, especially as there are so many other spaceport options popping up worldwide with no such sales tax.
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We’re here to help you: A bi-partisan proposal by two New Mexico legislators would create a 6% to 9% sales tax on any Virgin Galactic space tourist flights that take off from Spaceport America.
“If the flights really became regular, that could be a nice source of income, not only for the state but also from the GRT shared with the local communities,” [one of] the bill’s … sponsors, Democratic Rep. Matthew McQueen, said.
…”I can’t think of a particularly good reason why we wouldn’t tax this activity,” McQueen said.
McQueen might be too stupid to think of a reason, but I can think of dozens, and they are called the many other airport runways across the globe where Virgin Galactic can launch tourists and bypass this tax. The company already has agreements with several.
The stupidity of this legislative proposal at this time is compounded in that Virgin Galactic, the only customer Spaceport America presently has, is struggling badly. It has yet to fly any commercial flights, and is facing investor lawsuits and an aging fleet. Adding a tax on top of these problems could kill it, thus making this bill a perfect example of killing the goose that laid the golden egg, before the goose is even born. Moreover, it will certainly discourage anyone else from launching from New Mexico, especially as there are so many other spaceport options popping up worldwide with no such sales tax.
In order to remain completely independent and honest in my writing, I accept no sponsorships from big space companies or any political organizations. Nor do I depend on ads.
Instead, I rely entirely on the generosity of readers to keep Behind the Black running. You can either make a one time donation for whatever amount you wish, or you sign up for a monthly subscription ranging from $2 to $15 through Paypal, or $3 to $50 through Patreon, or any amount through Zelle.
The best method to donate or subscribe is by using Zelle through your internet bank account, since it charges no fees to you or I. You will need to give my name and email address (found at the bottom of the "About" page). What you donate is what I get.
To use Patreon, go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
For PayPal click one of the following buttons:
If these electronic payment methods don't work for you, you can support Behind The Black directly by sending your donation by check, payable to Robert Zimmerman, to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
This will be another nail in the coffin of Spaceport America. V.G. is the anchor tenant at the spaceport. Last time I looked there were a few companies out there and a university leasing some space, but I believe those companies are startups so it is more like a business incubator.
V.G. could easily move their operations to Texas or Florida.
It is customary to wait until a new industry is actually flourishing before you try to tax it out of existence. Given the current status of Virgin Galactic, this is counting your chickens before you’ve even bought the original laying hen. At this rate, there may never be anything to tax. Reality can be such a buzz kill sometimes.
I could see a tax proposal if there was a robust, functioning enterprise here, putting folks up every week & raking in tons of cash, but taxing something that doesn‘t even exist yet is just plain crazy! The voters in this district need to put a pro-business person in this seat!
David M. Cook: This is a bi-partisan bill, with the two co-sponsors a Democrat and a Republican. I didn’t mention the Republican simply because he was at least not dumb enough to say something stupid.
Jay,
At least there is more happening at Spaceport America than the Oklahoma Spaceport. Both catered to a specific client and that has left both just a shell of the original plans.
The beat way for politicians to kill the blooming commercial space sector is to start heavily taxing it.
““If the flights really became regular, that could be a nice source of income,”
The politician’s eternal attitude, how can I steal more money from the citizens to fund my hare-brained schemes and line my pockets
Gladstone – “But Mr Faraday, of what use is this electricity of yours?”
Faraday – “I do not know, my lord, but I predict that someday you will tax it”
“No man’s life, liberty or property are safe while the legislature is in session” – Samuel Clemens
Goose? Golden Egg? More like a pigeon with loose bowels. I would be angry were it levied against Musk…but here? I think it’s wonderful.
As a New Mexican, I must disagree. The state government used $200 million stolen tax dollars to build this boondoggle, so they must continue the theft and graft. How else are us poor taxpayers going to get our money back? The amount of corruption associated with this project is epic!