Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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105.0000 AIRCRAFT—Regulation 1593

Annotation 105.0069

105.0069 Common Carrier Use. A taxpayer purchased an aircraft for use in common carrier operations. The first operational use of the aircraft occurred on July 30, 1987. However, the FAA did not give the taxpayer authorization to use the aircraft as a common carrier until May 16, 1988. Therefore, any operational use prior to May 16, 1988, would not qualify as common carrier use.

Under regulations pertaining to common carrier operations, Part 135, subchapter (G) of Title 14 of the Code of Federal Regulations (CFR), each carrier can only operate a particular type of aircraft if it obtains authority for the specific category and class of aircraft. Accordingly, only the common carrier operations between May 16, 1988 to July 30, 1988, qualify in determining if more than one half of the 12 month test period was for use in common carrier operations. 1/7/94.