Do you know your state’s aircraft tax legislation?

Aircraft owners should be alert to state taxes, the National Business Aviation Association recently warned its members in a webinar.

Webinar presenters Phil Crowther, an attorney, and consultant Nel Stubbs discussed the types of taxes that pilots and business aviation operators might find themselves hit with, including sales tax, use tax, personal property tax, aircraft registration fees, income tax, and fuel tax.

Depending on what state the aircraft is based and operated in, taxes can apply to aircraft, aircraft parts and labor, and operating costs.

For example, if delivery of an aircraft is taken in Montana or New Hampshire, there would be no sales tax, but if the new airplane owner is in Arizona or Indiana, both property and registration taxes would have to be paid.

The NBAA webinar dealt primarily with business owned and operated aircraft. Many personally owned aircraft are frequently flown by their owners for business purposes, which makes knowledge of tax legislation in different states important issues. (See related story on an Illinois aircraft use tax amnesty program here).

 

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