The Senate Transportation Committee approved a bill sponsored by state Sen. Raj Mukherji, the committee’s vice chairman, on Nov. 10 that would impose a per-seat or per-flight tax on nonessential helicopter flights departing from, or arriving at, airports, heliports, and helistops licensed by the state, as well as impose sales tax on these flights and dedicate the revenue to NJ Transit.
Under the bill, S-4639, a tourist flight is defined as a flight on a non-essential helicopter or seaplane that operates for the purpose of providing sightseeing tours to patrons in areas like the Hudson River, the Statue of Liberty and Ellis Island. The tax would not be imposed on flights that operate for medical, military, governmental, journalistic, construction, infrastructure, charitable nonprofit, research, experimental, or educational purposes.
The bill imposes on the patron of a tourist flight a tax in an amount equal to $50 per seat or $200 per flight, whichever is greater, on a tourist flight departing from, or arriving at, any aviation facility licensed by the State including, but not limited to, airports, heliports, and helistops.
“Air traffic around New Jersey has skyrocketed, with helicopter-related noise complaints increasing nearly tenfold between 2019 and 2022,” said Mukherji (D-Hudson). “Noise pollution from low-flying, luxury tourism traffic is disruptive to the quality of life of the hundreds of thousands of us in Hudson County who live, work, learn, and watch our children play beneath their dangerous flight paths. Tourist flights pose a risk to our public safety and homeland security since they crisscross critical infrastructure daily and often with minimal scrutiny. Their carbon footprint is harmful to the environment and public health, and yet – inexplicably – they have enjoyed an exemption from sales tax.”
Finally, the measure imposes an assessment in an amount equal to 3% of the gross receipts that the owner or operator of a non-essential helicopter or seaplane receives for tourist flight service operations, as well as 3% of the gross receipts that an owner or operator of a heliport or helistop licensed by the State receives from departing and arriving tourist flights.
The bill requires the owner or operator of a non-essential helicopter or seaplane operating a tourist flight, and the owner of a heliport or helistop licensed by the state from which a tourist flight departs or arrives, to file the assessment with, and pay the assessment to, the State on a quarterly basis in a manner prescribed by the director.
According to data site Consegic Business Intelligence, the helicopter tourism market’s size in North America in 2024 was valued at $542.61 million and is expected to reach $719.96 million by 2032. In North America, the U.S. accounted for the highest share of 72.60% during the base year of 2024. No specific New Jersey data could be found.
Driving the interest in helicopter tourism is the presence of scenic destinations like the Grand Canyon and the Manhattan skyline. High disposable incomes and a preference for unique travel experiences contribute to the market’s growth.
Concerns about oversight of the industry were raised in April when a helicopter crash in the Hudson River killed people – a family of five and the pilot. The Bell 206 helicopter, operated by New York Helicopter Tours, was on an aerial sightseeing tour when it broke apart and plunged into the river.
