By: Letisha D. Bivins
State taxes are often overlooked in general aviation. 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.
I often hear, “I took delivery in Oregon,
» Read more about: Overlooked & Misunderstood – The Basics of State Aircraft Taxes »
During past budget shortfalls, aircraft have been the target of securing additional revenues through the aggressive collection of sales, use, and property tax.
The portability of aircraft can make it easy to avoid sales tax on the purchase by closing in a jurisdiction with little or no tax, or an applicable exemption, but that is only the first step. Use tax generally becomes a significant hurdle in the state or states in which the aircraft is based.
Suzanne Meiners-Levy provides a comprehensive presentation on current Updates and Emerging Issues in Aircraft Sales Use Tax.
» Read more about: Updates and Emerging Issues in Aircraft Sales Use Tax »
On April 12, 2013, the Illinois Senate passed SB2326, which at the time of this writing is now being considered by the Revenue and Finance Committee of the Illinois House. Included in the bill is a significant change to the Illinois Common Carrier Tax Exemption (referred to as Illinois “Rolling Stock”) that should be of significant concern to the general aviation community. The change would directly affect the following Illinois taxes: Use Tax; Service Use Tax;
» Read more about: PROPOSED LIMITATION OF ILLINOIS COMMON CARRIER TAX EXEMPTION »
Sales & Use Taxes, State and Local Taxation