Please ensure Javascript is enabled for purposes of website accessibility

Blog

I recently purchased an aircraft. What state tax laws should I be aware of?


 

Transcript:

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.

Advocate Covers:

Our Results

Service Agreements

Piston Aircraft Comprehensive Service Agreement

For Piston Aircraft  – $5,000 per year

Small Turboprop Comprehensive Service Agreement

For a single Turboprop Aircraft costing less than $2,000,000 – $7,500 per year

Large Turboprop Comprehensive Service Agreement

For Turboprop Aircraft costing more than $2,000,000 – $10,000 per year

Our Team

Meet the Attorneys

Jonathan Levy

Shareholder

Suzanne Meiners-Levy

Shareholder

Joseph Quackenbush

Managing Attorney

Letisha Bivins

Managing Attorney

Do you love aircraft? Work with our team of professionals!

Contact Us

Get in Touch
With Us

Get in Touch