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In most states, the sales and use tax rates are the same, so your purchases of in-state and out-of-state goods will usually wind up taking the same tax bite. Sometimes it isn't easy to determine whether your use of an aircraft in a particular state will trigger use tax liability.
In short, sales tax is a tax imposed when the sale occurs in the state. A use tax occurs when sales tax is not paid in the state or when the aircraft is imported into a state. As the states become hyper-aggressive with relentlessly pursuing the tax from new aircraft owners, purchasers must be cognizant of potential sales and use tax considerations.
States typically impose sales and use tax for the sale, purchase, and use of aircraft. However, the amount of imposed sales and use taxes vary from state to state. Each state enforces specific tax laws that aircraft owners must adhere to.
Whether you use your plane for business or just for personal pleasure, there are state taxes that may apply to your plane in one or more forms. Forty-four states impose sales and use tax on planes. In addition, 42 states impose annual personal property tax and/or registration tax on planes.
However, some states that charge sales tax on business jet purchases have exemptions that apply even when the aircraft is in the state at closing. Probably the most typical exemption is the “fly away.” The idea is simple: you avoid the tax by flying out of the state within a prescribed period allowed under state law.
Because aircraft are easily transportable, sales tax can be eliminated by transacting the transfer in a state such as Oregon or Massachusetts, which have no sales tax. Other states have little or no sales tax and use tax on aircraft purchases, including North and South Carolina.
1 lis 2019 · Sales and use tax is quite convoluted because it’s a state tax (as opposed to federal tax). In other words, every state has a different opinion on how, when, and why to charge taxes on the purchase and use of aircraft.
