Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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105.0000 AIRCRAFT—Regulation 1593

Annotation 105.0160

105.0160 Lease of Part of Aircraft. To facilitate the financing of a purchase of an aircraft by an airline, the engine and propeller equipment of the aircraft are titled in a third party who will concurrently lease the engine and propeller equipment to the airline. The airline takes title to the balance of the aircraft and takes delivery of the complete aircraft. The lease contains an option permitting the airline to acquire title to the equipment from the lessor in due course. The exemption in section 6366 is unaffected by this arrangement. The airline has the beneficial ownership of the entire aircraft as well as actual title to all but the engine and propeller equipment, and will ultimately secure title to this property. 5/14/58.