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Massachusetts Statewide Airport Economic Impact Study Update TECHNICAL REPORT JANUARY 2019 MASSACHUSETTS

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Massachusetts Statewide Airport Economic Impact Study Update TECHNICAL REPORT JANUARY 2019 MASSACHUSETTS Massachusetts Statewide Airport Economic Impact Study Update TECHNICAL REPORT JANUARY 2019 MASSACHUSETTS MASSACHUSETTS STATEWIDE AIRPORT ECONOMIC IMPACT STUDY UPDATE JANUARY 2019 Prepared for: Prepared by: 8845 Governor’s Hill Drive, Suite 430 Cincinnati, Ohio 45249 513-583-9800 With assistance from: Table of Contents Chapter 1: Study Summary Introduction ............................................................................................................................................................ 1-1 Study Background ................................................................................................................................................ 1-2 Study Findings ....................................................................................................................................................... 1-5 Summary .................................................................................................................................................................. 1-8 Chapter 2: Socioeconomic Overview of Massachusetts Introduction ............................................................................................................................................................ 2-1 Population ............................................................................................................................................................... 2-1 Employment ........................................................................................................................................................... 2-2 Per Capita Personal Income ............................................................................................................................. 2-3 Gross Domestic Product .................................................................................................................................... 2-3 Summary .................................................................................................................................................................. 2-5 Chapter 3: The Economic Modeling Process Study Approach ..................................................................................................................................................... 3-1 Measures of Economic Impact .................................................................................................................. 3-1 Categories of Economic Impact ................................................................................................................ 3-1 Types of Economic Impact .......................................................................................................................... 3-3 Data Collection Methods .................................................................................................................................... 3-5 On-Airport Activity ........................................................................................................................................ 3-5 Capital Improvement Impacts .................................................................................................................. 3-6 Commercial Service Visitors ...................................................................................................................... 3-7 General Aviation Visitors ............................................................................................................................ 3-9 Multiplier Impacts ...................................................................................................................................... 3-12 Total Impacts ............................................................................................................................................... 3-13 Chapter 4: Economic Impacts of Massachusetts Airports Employment Impacts .......................................................................................................................................... 4-2 On-Airport Activity Employment ............................................................................................................. 4-2 Commercial Service Visitor-Related Employment ............................................................................. 4-3 General Aviation Visitor-Related Employment ................................................................................... 4-4 Total Employment ......................................................................................................................................... 4-5 Payroll Impacts ...................................................................................................................................................... 4-5 On-Airport Activity Payroll ........................................................................................................................ 4-5 Commercial Service Visitor-Related Payroll ........................................................................................ 4-6 General Aviation Visitor-Related Payroll .............................................................................................. 4-7 Total Payroll .................................................................................................................................................... 4-8 Output Impacts ...................................................................................................................................................... 4-9 On-Airport Activity Output ......................................................................................................................... 4-9 Massachusetts Statewide Airport Economic Impact Study Update i Table of Contents Commercial Service Visitor-Related Output ..................................................................................... 4-10 General Aviation Visitor-Related Output ........................................................................................... 4-11 Total Output ................................................................................................................................................. 4-11 Summary ............................................................................................................................................................... 4-12 Chapter 5: Tax Impacts State Sales Tax Rate ............................................................................................................................................. 5-1 Room Occupancy Excise Tax and Local Room Occupancy Excise Tax ............................................ 5-1 Convention Center Financing Surcharges .................................................................................................. 5-1 Local Option Meals Tax ...................................................................................................................................... 5-1 Rental Car Tax Rates ........................................................................................................................................... 5-2 State Income Taxes .............................................................................................................................................. 5-2 Aviation Fuel Taxes .............................................................................................................................................. 5-2 Sales Tax Estimation Methodology ............................................................................................................... 5-2 Sales Tax Generated by On-Airport Businesses ....................................................................................... 5-5 Sales Tax Generated by Commercial Service Visitors ........................................................................... 5-5 Sales Tax Generated by General Aviation Visitors .................................................................................. 5-6 Sales Taxes Paid by Employees of On-Airport Businesses .................................................................. 5-7 Sales Taxes Paid by Employees Supported by Visitor Spending ...................................................... 5-8 State Income Taxes Paid by Employees of On-Airport Businesses .................................................. 5-8 State Income Taxes Paid by Employees Supported by Visitor Spending ...................................... 5-8 Aviation Fuel Taxes Paid by Aircraft Operators ...................................................................................... 5-9 Total Airport-Related Taxes ............................................................................................................................. 5-9 Examples of Aviation Fuel Taxes Supporting Aviation in Other States .......................................... 5-9 Tax Summary ...................................................................................................................................................... 5-11 Chapter 6: Unmanned Aircraft Systems Case Study UAS Regulatory Environment ......................................................................................................................... 6-2 FAA Reauthorization Act ............................................................................................................................ 6-3 Where and When to Fly ..............................................................................................................................
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