BKD, a national certified public accounting and advisory firm, has released a study showing Indianapolis International’s (IND) local and state contributions.
According the report, airport-associated business activity brings more than $56.5M in direct tax revenues each year to local tax jurisdictions and the state, including more than $7.4M to local school districts.
The study also analyzed the economics of nearby businesses that probably would not be operating without the airport’s existence, such as rental car companies, airlines and logistics companies.
Additional tax revenue generated by the Indianapolis Airport Authority’s significant capital and operating expenditures, or the multiplier effect created by the investments of the IAA and associated businesses, were not included in the study.
“With U.S. airports linked to more than 10 million American jobs and an annual payroll of $365B, it’s no surprise that IND plays a significant role in our local economy,” says Bob Duncan, executive director of the IAA. “As we work with all of our stakeholders to maximize and expand the value IND produces for our community, it’s important to understand the positive impact that IND has locally.
“Although IND’s budget is not funded by local or state taxes, we play a significant role in creating economic activity and tax revenue in Central Indiana, producing more than $50M in tax revenues for our region each year,” Duncan continues.
Greg Principato, president of Airports Council International-North America, says the findings confirm “America’s airports are economic hubs that drive our local, state and national economies, both inside and outside the airport fenceline.”
“Airports are bright spots in a time of economic uncertainty, especially for the 10.5 million American workers who depend on airports for good jobs across the USA,” Principato says, “IND is an economic engine for the Indianapolis region and will be as vital to job creation and economic growth for the Indianapolis economy over the next ten years as it has been over the last decade.”
The full report can be reviewed at www.aci-na.org/sites/default/files/iia-tax-impact-study.pdf
