Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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105.0000 AIRCRAFT—Regulation 1593

Annotation 105.0125

105.0125 Helicopter Used for Medical Transportation. A taxpayer's contract with a hospital requires that the taxpayer provide air transportation services to patients of that hospital only and the hospital pays the taxpayer for those services. The hospital also has and exercises control over when and where the taxpayer will transport their patients.

When an aircraft is dedicated exclusively for use for a single client, it is not available "to the public" for carriage of persons or property and is not used as a common carrier of persons or property for purposes of Regulation 1593(a)(1). The fact that the taxpayer is authorized to operate as a common carrier under Federal Aviation Administration regulations does not mean the taxpayer's operations, in this case, are that of a common carrier. Thus, the taxpayer is not offering its services to the public or a portion of the public as required for the exemption from tax provided for aircraft leased and used in common carriage. 11/22/96.