Sales Tax Laws Could Affect Your Drone Purchase (and more)

In a recent article on The Hill, organizations are urging Congress to reject proposed legislation that would require out-of-state online retailers to collect sales tax. This comes as the online sales tax issue has come back into the spotlight due to a case before the Supreme Court.  Another proposed law could exempt certain drones from sales tax altogether.

Currently, if you make an online or phone purchase from a company that does not have a point of presence in your state, you are not required to pay sales tax. Supporters of the legislation say that the global sales tax measure is important because it provides a level playing field for brick-and-mortar retailers and allows states to collect sales tax that is owed to them. Further to this, State and Local governments have been pushing for a greater ability to collect sales taxes from internet purchases, as the growth of e-commerce has made it harder for governments to reach their revenue targets. They could cut their expenses, but that is unheard of in government budgets. Some online retailers that once fought to keep "no taxes" on their online sales have now come out in support of the online tax. Amazon is one example of this.

The company wants this new tax IMO because it has grown exponentially, with points of presence in most states and is now required to collect sales tax. For example, if you purchase something from Amazon and Amazon has a warehouse in your state, then you will pay your states sales tax on the purchase. If you purchase something on Amazon from a merchant that is selling on Amazon but does not have a point of presence in your state, then you do not pay sales tax. In this example, Amazon loses the sale, but gains commissions from the merchant using their systems. In the past, Amazon was against all sales tax but has since changed its position. The company negotiated with state governments to collect the sales tax in exchange for bigger tax incentives and to build and have a point of presence in their state.

Now that they have lost their online sales tax advantage, they want to regain that advantage over their online merchants and other small retailers not selling on Amazon by forcing all of the small retailers to collect the sales tax. Once accomplished, they can continue to dominate the small retailer with lower prices.

Submitted by Certified Training Institute Drone Instructor Greg McMaster

 


ARE YOU INTERESTED IN OBTAINING A REMOTE PILOT IN COMMAND CERTIFICATE?

Individuals piloting drones for commercial purposes must pass the FAA Remote Pilot in Command  Exam in order to obtain a certificate.
Certified Training Institute offers online video exam prep to ensure you pass the exam on your first try!

Attention Drone Operators – LAANC Goes Live In April

LAANC Goes Live In April

The Federal Aviation Administration (FAA) released a statement announcing its plans for expanding the drone airspace authorization program.

Under the current Part 107 drone rule, operators must secure approval from the agency to operate in any airspace controlled by an air traffic facility. In order to facilitate those approvals, the agency deployed the prototype Low Altitude Authorization and Notification Capability (LAANC) at several air traffic facilities last November. The purpose is to evaluate the feasibility of a fully automated solution enabled by data sharing.

Based on the success, the agency has announced that on April 30th it will be conducting a nationwide beta test. During this beta test, LAANC will be deployed incrementally at nearly 300 air traffic facilities covering approximately 500 airports. The final deployment will begin in September.

Drone operators using LAANC can receive near real-time airspace authorizations. This dramatically decreases the wait experienced using the manual authorization process and allows operators to quickly plan their flights. Air traffic controllers can also see where planned drone operations will take place. The release goes on to say that beginning April 16, the FAA will consider agreements with additional entities to provide LAANC services. Currently, there are four providers: AirMap, Project Wing, Rockwell Collins, and Skyward.

Applications must be made by May 16. This is no standard government acquisition; no Screening Information Request (SIR) or Request for Proposal (RFP) related to this effort.

LAANC uses airspace data provided through UAS facility maps. The maps show the maximum altitude around airports where the FAA may authorize operations under Part 107. LAANC gives drone operators the ability to interact with the maps and provide automatic notification and authorization requests to the FAA. It is an important step in developing the Unmanned Aircraft Systems Traffic Management System (UTM).

For more information, visit www.faa.gov/

Submitted by: Certified Training Institute Instructor Greg McMaster


ARE YOU INTERESTED IN OBTAINING A REMOTE PILOT IN COMMAND CERTIFICATE?

Individuals piloting drones for commercial purposes must pass the FAA Remote Pilot in Command  Exam in order to obtain a certificate.
Certified Training Institute offers online video exam prep to ensure you pass the exam on your first try!

The Perils of Civilian Drones in an Emergency

Well-intentioned, civilian drones often hinder search efforts during and after an emergency. This was perfectly illustrated in the aftermath of Hurricane Harvey.  Many civilians wanted to fly their drones over flooded areas to look for stranded people and send help. However, novice drone pilots are a danger to manned aircraft rescuing people from rooftops and searching for survivors.

The FAA authorized 43 specific drone operators for recovery efforts and prohibited all other private drones from flying within 100 miles of Houston or 30 miles of Rosenberg. Civilian drone pilots that do not adhere to these flight restrictions will face fines from the FAA. In California and Arizona, firefighting aircraft have been hindered and forced to land to avoid crashes with drones flying thousands of feet in the air. In this case, civilian drone pilots put the aircraft crew and any civilians trapped by the fire in greater danger despite their best intentions.


ARE YOU USING A DRONE FOR YOUR BUSINESS?

All commercial drone pilots must possess a Remote Pilot in Command Certificate which can be obtained by passing the FAA Remote Pilot in Command Exam.

Step 1: Pay the $5 fee and register any aircraft that weighs more than 0.55lbs.
Step 2:  Pass the $150 Small UAS Remote Pilot Exam – exam prep is available here.
Step 3: Pass a TSA background check
Step 4: File FAA Form 8710-13

Check out our Complete Guide to Commercial Drone Use for more information.


 

RECEIVE A 20% OFF COUPON CODE WHEN YOU SIGN UP FOR INDUSTRY UPDATES



Industry