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Sales and Use Tax - Aircraft. Aircraft-1 - Aircraft Generally Subject to Sales Tax; Aircraft-2 - How to Register Aircraft in Tennessee; Aircraft-3 - How to Pay Tennessee Tax on New Aircraft Purchase; Aircraft-4 - How to Calculate Sales or Use Tax on Aircraft Purchase ; Aircraft-5 - How to Determine Tax Base of Imported Aircraft
13 kwi 2021 · Aircraft-4 - How to Calculate Sales or Use Tax on Aircraft Purchase. Tennessee applies a 7% state tax on the total amount of consideration, a local tax on the first $1,600, and a State single article tax rate of 2.75% on the following $1,600.
13 kwi 2021 · The purchase, use, or importation of an aircraft is subject to sales or use tax in Tennessee, even if the purchase, use, or importation of an aircraft is exempt in another state. It is up to each state to enact its own set of tax laws. Reference: Tenn. Code Ann. §§ 67-6-202, 67-6-203.
Tennessee law requires that sales or use tax be paid on aircraft domiciled in Tennessee. If your purchase was from an aircraft dealer in Tennessee, tax was probably collected by the dealer.
Additional information regarding the sale or transfer of aircraft and helicopters in the state may be found in the Tennessee Sales and Use Tax Guide or on the Tennessee Department of Revenue Sales and Use Tax webpage.
So if you buy an aircraft in a state that imposes a sales tax--and the vast majority do--you will be subject to the tax unless you qualify for an exemption. If you take the aircraft to another state, you may be faced with a use tax.
Aircraft are typically subject to sales or use taxes (or other transfer taxes) in most states. The sales tax will generally apply when the aircraft buyer purchases the aircraft in the state; use taxes typically apply when an aircraft is purchased in one state but is based in or used in another.
