The sales and use tax laws generally apply only to the purchase and use of property by the final consumer. To avoid taxing intermediate sales, almost all States have a resale exemption which allows resellers to purchase and use property tax-free. This exemption generally applies to lessors. Instead of paying tax on the purchase or use of the property, the lessor will charge sales tax on the lease payments. An aircraft investor can take advantage of this exemption by creating a captive aircraft leasing company to purchase the aircraft and to lease the aircraft to the users.