State Taxes

Bookmark and Share

NBAA State Aviation Tax Report

The NBAA State Aviation Tax Report is designed to function as an introduction to the vast body of law which constitutes the rules and regulations governing the taxation of general aviation among the fifty states. This report is developed and maintained by the volunteer Members of the NBAA Tax Committee.

For an overview of the information provided in the Report, review the introduction to NBAA’s State Aviation Tax Report.

 

Disclaimer:
This report is being provided to NBAA Members for their general information and should not be construed as legal or tax advice on any specific facts or circumstances. You are urged to consult your attorney, accountant or other advisor concerning your own situation and for any specific legal or tax questions you may have.

The web links within the report provide access the version of the statutes and/or regulations that are available on the State’s website, which may not be the official versions. It is important that you consult the official versions of the statutes and regulations, relevant case law and rulings before engaging in any aircraft transaction.

State Tax News

Wisconsin Passes Sales-Tax Exemption for Aircraft Parts and Labor
April 9, 2014
Wisconsin Gov. Scott Walker earlier this month signed new legislation that exempts sales tax on aircraft parts, maintenance and repairs for aircraft used in non-commercial operations. The new exemption becomes effective on July 1, 2014. "This new exemption provides Wisconsin aviation businesses a level playing field with aviation businesses in nearby states that already have a similar exemption," said Bob Quinn, NBAA’s central regional representative. "NBAA applauds the Wisconsin legislature and Gov. Walker for their commitment to a thriving aviation industry in their state. This bill will help create more jobs, which tend to be highly skilled and well compensated, for general aviation businesses in Wisconsin." Read more about the new exemption in Wisconsin.
Call to Action: Support Arizona Aviation Tax Reform
February 24, 2014
NBAA strongly encourages Members in Arizona to support a proposed amendment to Senate Bill 1174, which would reform the aviation tax system in the Grand Canyon State and promote economic growth. The legislation would simplify aircraft licensing fees in Arizona by replacing a tax of 0.5 percent on aircraft market values with a flat rate structure. Under the proposal, the license tax would only apply to aircraft based in the state for more than 90 days. Finally, all purchases of aircraft in Arizona would be exempt from sales and use tax. Learn how to support the legislation.
New Mexico Aviation Tax Exemptions Headed to Governor
February 24, 2014
Last week the New Mexico state legislature passed two measures designed to attract business aviation to the state, both bills are now awaiting the Governor’s signature. House bill 14 would exempt aircraft parts and maintenance services from the gross receipts tax which can range from 5.125 percent to 8.6875 percent depending on the location of the business. The legislature also passed House bill 24, which would provide an exemption from the gross receipts tax for aircraft more than 10,000 pounds sold to commercial or military carriers. NBAA applauds the efforts of members in New Mexico to advocate for this important legislation. Learn more about the legislation.
Call to Action: Support New York GA Aircraft Tax Exemption
February 5, 2014
NBAA strongly encourages Members in New York to support Assembly bill 3677 and Senate bill 273 that would exempt general aviation aircraft purchased in the state from sales and use tax. Last year, a similar bill passed the Senate but failed in the Assembly. Currently, the legislation is being considered by the Ways and Means Committee of the State Assembly so now is the time to contact those committee members and express support for the legislation. Learn more and contact your legislators.
Nevada Bill Aims to Reduce Taxes on Aviation Businesses
April 25, 2013
Arguing that Nevada's aviation industry is losing business to neighboring states, the Nevada Business Aviation Association (NVBAA) is pushing state lawmakers to approve a bill that would reduce taxes on a variety of aviation companies, including manufacturers, retailers, aircraft owners and operators, and FBOs. Sponsored by a bipartisan group of Nevada senators, the bill was introduced on March 18. It was approved in early April by the Senate Committee on Revenue & Economic Development. Learn more about the proposed legislation in Nevada.
Pennsylvania Legislature Considering Aircraft Tax Exemption
April 1, 2013
Legislators in Pennsylvania are considering Senate Bill 593 and House Bill 1100, which would provide a sales tax exemption for fixed wing aircraft, parts and maintenance. The state already offers a sales tax exemption that applies to helicopters, and businesses have reported hiring additional employees as a direct result of the helicopter exemption. Operators in Pennsylvania should contact their state elected officials to express support for both bills. Learn More.
Podcast: Improved NBAA State Aviation Tax Report Now Available
August 20, 2012
The NBAA State Aviation Tax Report has been revamped to make it easier for Members to compare tax rates and policies between all 50 states. “For each of the states every year, our accountants and lawyers on the Tax Committee research the taxability of aircraft ownership in that state,” said NBAA Senior Manager of Finance and Tax Policy Scott O’Brien. “In the newly revised Report, we created a standard list of exemptions and evaluated them in each state. We also provide a link to the statute for exemptions in each state.” Learn about this aviation tax resource.
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. Leaders of NBAA’s Tax Committee presented a webinar, “State Taxes Impacting Business Aviation,” now available online. 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.
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. 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.