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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.
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.
27 wrz 2013 · One thing that many are not aware of in Tennessee is that if you own a plane for purposes of leasing it, you don't have to pay use tax, but you do have to collect and pay sales tax each time the plane is rented, even to yourself.
Sales or use tax are usually assessed in the state where an aircraft is primarily based. If you purchase it in state, you pay sales tax. If you purchase out of state in a tax exempt sale there, you pay use tax in the state the aircraft if primarily based.
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.
You can use our Tennessee Sales Tax Calculator to look up sales tax rates in Tennessee by address / zip code. The calculator will show you the total sales tax amount, as well as the county, city, and special district tax rates in the selected location.
