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Motor Vehicle Taxability - Aircraft

Motor Vehicle Taxability - Aircraft

If the seller did not collect and remit Ohio sales or use tax on the purchase, they should complete a VP USE form and submit it with  use tax payment.  The VP USE Form can be found on our website at Tax Forms.  Mail the payment and the VP USE form to this address:

    Ohio Department of Taxation

    PO Box 182048

    Columbus OH 43218-2048.

Ohio use tax is due on the purchase price of the aircraft. The tax rate is determined by the tax rate in effect for the county in which the aircraft is hangared at that time of purchase. Use The Finder to calculate the amount of tax due.

Yes. Ohio Revised Code (R.C.”) 5741.12 requires “every person storing, using, or consuming tangible personal property” in Ohio who did not pay Ohio sales tax at the time of purchase to pay the use tax. There is no specific exemption for experimental aircraft.

Yes. Ohio Revised Code (R.C.) 5741.12 requires “every person storing, using, or consuming tangible personal property” in Ohio who did not pay Ohio sales tax at the time of purchase to pay the use tax. There is no specific exemption for the purchase of an aircraft that is not airworthy.

No, provided the seller was not in the business of selling, leasing or renting aircraft.

Yes, provided the seller was not in the business of selling, leasing or renting aircraft. R.C. 5739.01(L) defines “casual sale” as the “sale of an item of tangible personal property that was obtained by the person making the sale, through purchase or otherwise, for the person’s own use and was previously subject to any state’s taxing jurisdiction on its sale or use.”

Assuming it was not a casual sale, an aircraft purchased in another state is still subject to Ohio use tax.  To determine the use tax liability, multiply the purchase price of the aircraft by the tax rate in effect in the Ohio county where the aircraft was hangared when brought into Ohio.  From that amount, subtract the tax paid to the other state to arrive at the use tax due to Ohio.

Yes R.C. 5741.12, imposes use tax on the storage, use, or other consumption of tangible personal property in Ohio.  The use tax was due and payable at the time you brought the aircraft into Ohio.   The fact that you subsequently sold the aircraft does not make your prior use of the aircraft in Ohio nontaxable.

An aircraft assembled from a kit is subject to the same sales or use tax as other tangible personal property brought into, consumed, or used in Ohio.  The purchase of the kit and other parts is subject to Ohio use tax regardless of the place of origin.  Sales or use tax must be paid at the time of each purchase, either to the seller, if the seller is registered to collect and remit Ohio sales or use tax, or by the consumer using the VP USE form.  The VP-USE form can be found on our Web site at Tax Forms.

Yes, assuming no exemption applies. The “price” is the fair market value of the aircraft you traded.

Yes. The statute of limitations is four years from the date the return is filed. If no return is filed, there is no time limit on assessments of unpaid sales or use tax.

No. An aircraft which is primarily used to rent to others, without the owner’s pilot, may be purchased under the resale exception in R.C. 5739.01(E).  Note—the rental of aircraft without a pilot to others is subject to sales tax and the aircraft owner must have a vendor’s license and collect and remit sales tax on all rentals.

Generally, yes.  A company that provides an aircraft with a pilot and transports customers to the location of their choice is not ‘renting’ the aircraft to the customers, but providing a charter service.  If the flight is entirely within Ohio it is a taxable transportation service under R.C. 5739.01(B)(3)(r). If such transportation is provided, the aircraft owner must have a vendor’s license and collect and remit sales tax on all flights entirely within Ohio.

No. Under R.C. 5739.01(B)(3)(r), a taxable transportation service is one that originates, terminates, and at all times remains within Ohio.  If an aircraft is used primarily to provide taxable transportation services, the initial purchase of the aircraft is exempt under R.C. 5739.02(B)(41).

Generally, yes because the school is making a taxable use of the aircraft by using it to provide flight instruction.  The school is not reselling the aircraft because possession of the aircraft is not transferred to the student.

No.

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Additional Resources