The time for tax planning is before you complete a transaction. Nearly all states have sales tax and nearly all impose tax on aircraft the same as they would on any other merchandise. This means tax of 6% – 10% depending on location can easily apply. Fortunately, many states have so-called “fly away exemptions” that avoid sales tax for planes purchased just to be removed from the state. With advanced planning, most transactions can be tailored to meet such an exemption. Use tax, which mirrors sales tax, must also be planned for and applies in the state where the plane is used as opposed to where it was purchased. Use tax planning happens on a case-by-case and state-by-state basis requiring the matching up of the particular facts of a given aircraft with the exact state laws. There is no one size fits all solution.