One of the most neglected considerations when purchasing an aircraft is how to properly plan for the sales tax and use tax implications of buying and owning your plane or helicopter. This can be a very costly mistake, as sales tax and use tax can be as high as ten percent of the aircraft’s purchase price, and sometimes even higher.
Even if an aircraft is purchased in a state with no sales tax, or one in which the purchaser has a valid exemption to sales tax, there may still be liability to one or more additional states for the payment of use tax if the aircraft spends even a minimal amount of time in those states.
Many aircraft purchasers rely on sales and use tax advice from a fellow owners or pilots, and too often this suggested tax solution is either outdated or was never a legally viable option. With more and more states aggressively pursuing sales and use tax on aircraft, it is critical to have valid exemptions in place before you close. In addition, each state’s tax laws are different, and therefore the available exemptions, and the requirements to meet qualify for those exemptions, differ from state to state.
Contact us today for a free consultation to learn how we can help you save on sales and use tax.