State Taxes

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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

Minnesota Aviation Groups Achieve Aviation Tax Reform
May 23, 2013
Minnesota recently passed an omnibus tax bill that makes the first substantive changes to the state’s aviation fees and taxes since they were conceived in 1945. While business aircraft will see the biggest changes, the new statutes benefit commercial and general aviation as well, and ensure steady revenue to the state’s airport fund. On July 1, 2014, a flat annual registration fee based on an aircraft’s list price will replace a formula of percentages and a seven-year depreciation schedule. Learn more about Minnesota’s new aviation tax laws.
NBAA Pushes Pro-Aviation Tax Policies in Three Eastern States
May 17, 2013
NBAA has redoubled its advocacy efforts in three Eastern states – Maine, Massachusetts and Pennsylvania – where lawmakers are considering tax legislation that would have a major impact on general aviation (GA). In its outreach activities, NBAA is teaming up with other industry advocates to highlight the economic benefits of tax policies that generate growth in the aviation sector. States that exempt aircraft from sales and use taxes attract more based aircraft and, therefore, create more jobs to maintain those aircraft. Learn more about NBAA‘s efforts with pro-aviation tax legislation
Oppose Proposal to Repeal Massachusetts Aircraft Tax Exemption
May 13, 2013
Legislators in Massachusetts are considering House Bill 2490, introduced by Rep. Cory Atkins (D-Concord) to repeal the sales tax exemption on aircraft. Similar legislation has been proposed in prior years, but NBAA and a coalition of general aviation groups have been able to preserve the exemption. It is critical that Members again take action this year. Learn More.
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.
Idaho Governor Signs Legislation to Modify Aircraft and Pilot Registration Fees
April 8, 2013
In an effort to secure funding for the important work done by the Idaho Aeronautics Division, the Governor has signed legislation restructuring the state’s aircraft and pilot registration fees. Effective July 1, the pilot registration fee of $6 per year will be eliminated. Also effective on July 1, the annual aircraft registration fee will increase from one cent per pound of aircraft gross weight to 3 cents per pound. The maximum aircraft registration fee will increase from $200 to $600.
Review Idaho House Bill 117.
Review Idaho House Bill 118.
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.
Maine Legislature Considering Bill to Extend Exemption for Aircraft, Parts
March 18, 2013
The Maine legislature is considering Bill LD279 that would make permanent the current exemption on aircraft, parts and maintenance which is set to expire in 2015. NBAA encourages as many businesses as possible to contact their elected officials in Maine to express support for this Bill LD279. The Maine Department of Economic and Community Development is endorsing the bill. 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.
New Article Provides New York State Sales and Use Tax Update
August 27, 2010
When making an investment in a business aircraft, understanding the potential costs of state and local taxes is very important. A new article for NBAA Members provides details on the specific sales and use taxes and potential exemptions available to aircraft owners in the State of New York. Review the complete article.
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.