Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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105.0000 AIRCRAFT—Regulation 1593

Annotation 105.0005

105.0005 Aircraft and Gliders. A taxpayer, who operates a glide port, purchased two tow planes (single engine aircraft) and seven gliders. The aircraft and gliders will be used solely in the operation of the glide port. Members of the general public pay a fee for a glide ride.

The tow planes are not being used as common carriers of property or persons. The tow planes are being used to tow property owned by the taxpayer and are subject to tax. The gliders are not powered contrivances and, therefore, are not aircraft as defined in section 6274. Since the gliders are not aircraft, the exemption under section 6366 for aircraft sold to common carriers does not apply to the sales of the gliders. As such, the purchases of the gliders are also subject to tax. If purchased ex-tax by certifying in writing to the sellers that the aircraft and gliders would be used for exempt purposes, per section 6421 the purchaser must pay sales tax measured by his/her cost of the property, as if they were the retailer making a retail sale of the aircraft and gliders. 4/8/92.