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 Tax News From Across The Country
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. If signed by the governor, the new rules will go into effect July 1, 2010. 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
NBAA Members and Others Defeat Onerous WA Tax Proposal
April 19, 2010
NBAA last week applauded the Washington State legislature's decision to set aside an onerous tax proposal for aircraft in the state's annual spending package. The tax proposal would have raised aircraft registration fees by as much as 1,400 percent. To oppose the tax hike, NBAA and its Members banded with others in a unified grassroots coalition, known as the Washington Aviation Coalition (WAC). Learn More.
Nevada's New Program Detects Sales and Use Tax Evasion
May 11, 2009
Nevada officials have implemented a program to determine if residents have evaded sales and use taxes by registering property in a state or jurisdiction which either does not levy sales and use taxes or does so at a lower rate than Nevada's. If the program determines that a Nevada resident is attempting to evade the tax, a 10-percent penalty on the amount owed plus 1 percent interest per month the tax is not paid could be assessed. In some cases, the penalty assessed could be 300 percent.
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. For additional information, 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. An article providing background on this property tax situation has been provided for NBAA Members:
