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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