State Taxes

NBAA State Aviation Tax Report

The NBAA State Aviation Tax Report is designed to function as an introduction to the vast body of law that governs the taxation of general aviation among the fifty states. This report is developed and maintained by the volunteer members of the NBAA Tax Committee.

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

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 links within the report provide access to the version of the statutes and 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.

News

Groups Urge New York Governor to Maintain Pro-General Aviation Tax Program March 21, 2024: NBAA has joined with other aviation and state economic groups in an appeal to New York Gov. Kathleen Hochul to preserve a vital incentive package that has been "an unqualified success" in bringing new aviation jobs and economic contributions, and greater regional competitiveness, to the Empire State.
NBAA Call to Action Urges Support for Florida Sales and Use Tax Reform March 8, 2022: NBAA issued a call to action to its Florida-based members to support legislation being considered by the state legislature that would boost the local economy, generate new jobs and make Florida more competitive with neighboring states.
NBAA, Industry Coalition Supports Florida Aircraft Sales Tax Exemption Bill Jan. 25, 2022: A coalition of leading aviation advocates, including NBAA is championing new legislation being considered in Florida that would generate new jobs and economic opportunities for the state by eliminating its 6% sales and use tax on aircraft.
NBAA Opposes Effort to Repeal MA Aircraft Sales Tax Exemption Dec. 17, 2021: NBAA is opposing a bill introduced in the Massachusetts legislature that calls for the repeal of the commonwealth’s sales and use tax exemption on aircraft sales and parts used in repairs.
Massachusetts Legislature Shelves Landing Fee Legislation Targeting General Aviation Sept. 17, 2021: NBAA welcomed news that the Massachusetts legislature has effectively terminated legislation that would have imposed a $1,000 landing fee on virtually all general aviation operations.
NBAA to Represent Industry at Hearing Opposing Massachusetts Landing Fee Bill June 23, 2021: NBAA is urging Massachusetts legislators to reject a bill that would impose a $1,000 landing fee on virtually all general aviation operations, warning that the legislation would be devastating to the general aviation industry in the commonwealth.
SC Dedicates More Aircraft Property Tax Revenue to State Aviation Fund May 26, 2021: A new South Carolina law will allow more future revenue from aircraft property taxes to be used to bolster the state aviation fund and obtain or develop certain facilities.
NBAA Issues Call to Action Urging Opposition to MA Bills That Would Harm Industry May 20, 2021: NBAA issued a call to action urging its Massachusetts-based members to oppose three pieces of legislation pending before the commonwealth legislature, citing the harmful impact they would have on general aviation.
NBAA Opposes Massachusetts Bills That Would be Harmful to General Aviation May 12, 2021: NBAA is opposing three bills under consideration by the Massachusetts legislature that would negatively impact general aviation in the commonwealth.
NBAA Urges New York to Protect Aviation Jobs Feb. 12, 2021: NBAA has joined local business and transportation leaders in urging New York policymakers to reject any efforts that would threaten thousands of jobs across the state.
Massachusetts Aviation Sales Tax Exemption Continues to Fuel Economy March 29, 2019: A study found that aviation airports provide more than 5,000 jobs in the commonwealth of Massachusetts, with a total output of over $630 million.
Manufacturers Embraer, Piper Voice Support for Pending Florida Tax Reform March 28, 2019: Florida-based manufacturers Embraer and Piper have voiced their support of the state’s pending sales-and-use tax reform.
Florida Legislature Considering Aircraft Sales Tax Reduction Feb. 21, 2019: Florida state legislators are currently considering a bill that would reduce the sales-and-use tax rate on aircraft from 6 percent to 4 percent.
NBAA-Supported Virginia Tax Policy Designed to Attract Aviation Businesses July 13, 2018: On July 1, 2018, a new bill went into effect in Virginia that will encourage companies to purchase aircraft parts and conduct maintenance in Virginia by exempting such spending from sales and use tax.
New Hampshire Law Ensures Equitable Aircraft Registration Fees July 11, 2018: A new New Hampshire law addresses the discrepancy that existed between aircraft registration fees in the state, and those in neighboring Massachusetts.
Call to Action: Michigan Sales and Use Tax Bills Heading to House for Vote April 19, 2017: The Michigan House of Representatives will soon vote on two critical sales and use tax bills related to aircraft parts and maintenance services. The Michigan Business Aviation Association (MBAA) and NBAA encourage Michigan-based members to contact their state representatives and urge them to vote for the bills.
California State Tax News March 24, 2017: Information on sales and use tax policies in the State of California.
Texas GA Caucus Calls for Maintenance Tax Reform March 7, 2017: With its reputation as a pro-growth, low-tax state, Texas should be a favorable place to work on aircraft. But it’s one of a shrinking minority of states that tax repair parts for general aviation (GA) aircraft.
As California Case Shows, For-Sale Aircraft May Be Exempt from Property Tax Dec. 20, 2016: In California, signing an aircraft listing agreement may allow the aircraft to qualify as business inventory during the time it is for sale.
Florida NBAA Members Encouraged to Stay Engaged on State Aviation Tax Reform Oct. 24, 2016: NBAA, the Florida Aviation Business Association and other stakeholders continue to advocate for legislation that would exempt aircraft sales and leases from the state’s 6 percent sales tax.
State Tax Planning Continues After Aircraft Acquisition Oct. 17, 2016: Read about what state tax planning is needed after a business aircraft acquisition, as well as how NBAA can help aircraft buyers, in the September/October 2016 issue of NBAA's Business Aviation Insider magazine.
NBAA Responds to State Tax Challenges On Both Sides of the U.S. June 30, 2016: Business aircraft owners and operators in New Jersey and Nevada should join with NBAA in opposing potentially onerous proposed state tax changes.
Arizona Governor Signs Charter Tax Exemption Into Law May 27, 2016: Arizona Gov. Doug Ducey signs law exempting aircraft used for charter flights from the state's transaction privilege tax and use tax.
Idaho Solidifies Aircraft Parts Sales Tax Exemption March 18, 2016: Idaho Gov. Butch Otter has signed into law HB 361, which makes permanent a sales tax exemption on aircraft parts for out of state aircraft.
NBAA Supports Aviation Tax Exemption in Maryland Feb. 5, 2016: NBAA strongly supports a Maryland bill that would exempt aircraft repair and upgrade parts from sales tax, saying that without the repair exemption.
Business Aviation Sees Immediate Benefits of Tax Reform in New York Dec. 23, 2015: NBAA member Sheltair Aviation is already benefitting from New York’s new sales-and-use tax exemption on general aviation aircraft and related equipment, a measure that NBAA pushed for to lower the cost of doing business in the state.
Florida Could Gain Jobs, Revenue Through Elimination of Sales Tax on Aircraft Nov. 30, 2015: Florida could gain almost 300 jobs and millions in economic growth by reducing or eliminating the sales tax on aircraft, according to a study commissioned by the Florida Aviation Business Association.
NBAA Applauds Complete Allocation of Aviation Tax Revenue to Airport Projects in Washington State Aug. 7, 2015: Washington state Gov. Jay Inslee signed the Transportation Appropriations Bill, which reallocated 100 percent of aircraft excise tax revenue to aviation without raising the tax itself.
New York Sales and Use Tax Exemption for GA Aircraft July 30, 2015: Learn about the general aviation sales and use tax exemption in New York.
Oregon Dedicates $20 Million to Aviation Infrastructure July 27, 2015: Oregon has dedicated $20 million to aviation infrastructure needs over the next six years, with the passage of House Bill 2075, which was signed by Gov. Kate Brown on July 20, 2015.
State Tax Wins Are Good News for Business Aviation, Jobs, Communities Alike June 18, 2015: Success on aviation tax matters in state legislatures across the country have given aircraft owners and operators something to celebrate.
NBAA Led Effort in Texas Levels State Tax Playing Field for Business Aircraft Owners June 17, 2015: Senate Bill 1396 in Texas addresses issues related to leasing strucutres in Texas
Nevada Passes Partial Tax Abatement on Aircraft Sales and Services June 15, 2015: Nevada's Gov. Brian Sandoval signing a bill on June 8, 2015, which would abate certain tax liabilities for those who own, operate, manufacture and service general aviation aircraft in the state.
South Carolina Adopts General Aviation Maintenance Sales Tax Exemption June 4, 2015: South Carolina lawmakers have passed a sales tax exemption on parts and supplies used in repairing or reconditioning aircraft. In May 2015, NBAA sent a letter to each of the state’s senators pointing out the benefits of the policy.
Arkansas Passes Flyaway and Maintenance Tax Exemption April 24, 2015: Arkansas' legislature on April 7, 2015, passed a sales and use-tax exemption for aircraft maintenance, as well as a flyaway exemption for aircraft sales.
Washington State Issues Final “Tax Avoidance” Rule April 17, 2015: The Washington State DOR issued a final tax avoidance rule that can limit the sale for resale exemption on leasing structures.
Arizona Legislature Passes Commercial Aircraft Exemption April 6, 2015: Members in Arizona should support Senate bill 1174 in Arizona that will reform the aviation tax system.
In Texas, NBAA Advocates in Defense of Workable Aircraft Leasing Structures April 2, 2015: A coalition of operators, led by NBAA, is advocating for legislation in Texas to preserve the long-accepted 'sale for resale' exemption for aircraft leasing, and other exemptions.

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