State Taxes
This page is intended to serve as an introduction to the vast body of law governing the taxation of general aviation among the fifty states in the nation. Aircraft owners must consider sales and use taxes, fuel taxes, property taxes, and a host of additional state-specific issues when planning for the acquisition and operation of general aviation aircraft.
The NBAA State Aviation Tax Report, and the articles on this page provide summary-level information about a wide range of tax issues affecting general aviation at the state level. Since these materials are general in nature, Members are encouraged to obtain legal and tax advice on specific facts and circumstances regarding their acquisition and use of general aviation aircraft for business.
NBAA State Tax News From Across the Country
- Lawmaker Leads Effort to Repeal Pennsylvania's Aircraft Sales & Use Tax
- January 23, 2012
Peter Daley is a Pennsylvania state legislator who understands the business aviation industry's potential to create high-quality jobs and stimulate economic activity in his state. Daley has sponsored a bill, HB 1100, to exempt aircraft sales and maintenance from the state's sales-and-use tax. "This bill would put Pennsylvania in a competitive position in regards to neighboring states," said Daley, "Its biggest impact will be to create jobs here, in our state, in the aircraft maintenance industry." Read more about the proposed tax exemption in Pennsylvania. - Call to Action: Pennsylvania Considers Aircraft Tax Exemption
- January 6, 2012
NBAA is strongly encouraging Members based in Pennsylvania or doing business in the state to contact legislators and express their support for legislation (HB 1100) that would exempt fixed-wing aircraft from the 6 percent Pennsylvania sales and use tax. In addition, aircraft repair parts and installation would also be exempt from sales and use tax. Since implementing similar exemptions, states such as Massachusetts, Connecticut and New York have seen an increase in aviation activity and additional tax revenue. Massachusetts recently completed an economic impact study revealing that over 4,000 jobs and nearly $445 million in economic impact are tied to the state's 30 general aviation airports. Learn more about the proposed Pennsylvania tax exemption. - Maine Passes Tax Relief for Business Aviation
- June 27, 2011
The state budget passed by Maine last week includes a new exemption for aircraft and aircraft maintenance and repair parts from the state’s 5 percent sales tax. The budget also repeals the burdensome use tax on new aircraft owners from out of state who brought their airplanes to Maine for more than 20 days. NBAA supported the grassroots advocacy effort that pushed for the tax relief, which is expected to bring more business to Maine’s airports, FBOs and repair stations. Learn More. - Member Advocacy Defeats Tax Increase in Massachusetts
- June 3, 2011
A legislative proposal to eliminate the sales tax exemption on aircraft in Massachusetts has been defeated, thanks to NBAA Members’ decisive action. NBAA helped mobilize Members and ensure business aviation was well represented at a public hearing on the proposal. The aviation community's advocacy helped in shelving the initial bill and in defeating an amendment to the state budget that would also have eliminated the tax exemption. “Thanks to the work of local aviation advocates, general aviation will continue to be a major contributor to the Massachusetts economy,” said NBAA’s Dean Saucier. Learn more - State Taxes Impacting Business Aviation – Could Your Aircraft Be Affected?
- May 9, 2011
State tax rules can be confusing even to tax attorneys or accountants, because the rules vary among the states, and business aircraft are operated in multiple states. Misconceptions abound regarding the applicability of taxes to aircraft operated for business, and there is no prohibition against “double taxation,” so states can impose multiple taxes on aircraft. To help operators understand the rules for their own aircraft, leaders of NBAA’s Tax Committee presented a recent webinar, “State Taxes Impacting Business Aviation,” now available online. Learn more. - Virginia Leaders Say: ‘No Plane, No Gain'
- April 11, 2011
At a time when many states, faced with severe budget shortfalls, are considering raising taxes on aviation, Virginia has passed two aircraft sales tax exemptions to attract aviation business to the state. "Companies have the potential to create good, high-paying jobs, but the jobs follow the airplanes," reports NBAA's Scott O'Brien, project manager for the Association's Operations Service Group. "With this new law, Virginia legislators have demonstrated that they understand the value business aviation brings to the state." Learn More. - California Fractional Tax Ruled Unconstitutional
- December 13, 2010
An Orange County Superior Court judge has ruled that California’s controversial fractional aircraft property tax law is unconstitutional. On November 30, Judge William Monroe held that the imposition of property tax on the managers of fractionally owned aircraft by California Senate Bill 87 (SB 87) is unconstitutional and unlawful. Learn More. - New Florida Aircraft Sales Tax Legislative Initiative Launching
- November 22, 2010
Earlier this year, a coalition of aviation associations, including NBAA, successfully advocated for fair tax legislation in the state of Florida so that aircraft owned by non-residents could be used in Florida for a reasonable time period without being subject to the state’s use tax. Unfortunately, the Florida Department of Revenue (FDOR), has determined that leased aircraft are not subject to this new exemption. The FDOR has taken the position that leased aircraft, even by non-residents, are subject to sales tax payments if the aircraft is used in the state in the first six months of the lease. Learn More - New Article Provides New York State Sales and Use Tax Update
- August 27, 2010
When making an investment in a business aircraft, understanding the potential costs of state and local taxes is very important. A new article for NBAA Members provides details on the specific sales and use taxes and potential exemptions available to aircraft owners in the State of New York. Review the complete article. - Good News on Florida Use Tax Reform Legislation
- May 3, 2010
Florida use tax reform legislation approved by the state legislature is a win for Florida’s economy and for out-of-state aircraft owners. Newly purchased aircraft by non-residents living in another state will be able to fly to Florida and remain for up to 21 days during the first six months of ownership, and an aircraft may enter or remain in Florida exclusively for the purpose of flight training and repairs with no time constraints during the first six months of ownership without the potential liability of a Florida use tax. Learn More. - Massachusetts Issues Directive on Taxation of Non-Resident Flightcrew Members
- May 5, 2008
The Massachusetts Department of Revenue has issued a directive regarding the personal income taxation of non-residents who are employed as flightcrew members on aircraft based in the state. While there is a federal limitation on state personal income taxation that applies to flightcrew members who perform services on air carrier flights, this limitation does not apply to flights conducted under Part 91 of the Federal Aviation Regulations. State employers operating aircraft under Part 91 are required to withhold taxes for non-resident flightcrew members. Review the directive. - Update on Washington State Personal Property Tax Assessments
- April 30, 2007
NBAA has significant concerns regarding Washington State’s personal property tax regulation and has been working with local Members and the state to address those concerns. The State of Washington Department of Revenue (DOR) has taken the position that personal property tax is due on a percentage of the entire fleet of each Part 135 operator that flies into or out of Washington. The tax is based on the value of the fleet and apportioned based on the charter operator’s aircraft usage in Washington.
