Sales and Use Tax: Most states levy sales tax when title to an aircraft transfers while the aircraft is located in that state. Without an exemption, tax is assessed at closing. Sales tax can be avoided when a state provides a “flyaway” exemption.
Transaction Tip: Save time, money and simplify an aircraft closing by selecting a pre-purchase inspection facility located in a state with a flyaway exemption.
Even if sales tax is avoided in the delivery state, use tax is generally due in the state where the aircraft resides or is heavily used. Careful use tax structuring can eliminate or defer use tax payments over the period of the aircraft ownership.
Property and Aircraft Registration Fees: States typically assess a registration fee or property tax on aircraft ownership. Annual registration fees may be calculated on the aircraft’s year of manufacture and the maximum gross weight.”. Property tax is assessed on a percentage of the market value of the aircraft. The taxable rates vary by county.