General aviation aircraft and machinery and equipment installed on general aviation aircraft is exempt from New York state and local sales tax, effective September 1, 2015.
General aviation aircraft is “aircraft that is used in civil aviation.” The sales tax exemption applies to receipts for the following:
- Eligible aircraft
- Property affixed to the aircraft (built in appliances, entertainment systems, furniture, climate control systems, window coverings, etc.)
- Property contained in or on the aircraft at the time of sale “that is necessary for its normal operation” (avionics, emergency lighting, radios, navigation, weather radar systems)
Also exempt is machinery or equipment installed on a general aviation aircraft subsequent to its purchase, provided it is necessary for the aircraft’s normal operation or equipping.
Form ST-121, Exempt Use Certificate must be used to claim the exemption.
General aviation aircraft is not the following:
- Commercial aircraft
- Military aircraft
- Unmanned aerial vehicle or drone
Accessories added to the purchase price of the aircraft are not exempt. These include, but are not limited to, the following:
- Decorative items (art, paintings)
- Linens, pillows, towels
- Small appliances
- Tableware, glassware, cookware
Is the aircraft I’ve ordered exempt?
The exemption took effect September 1, 2015, and applies to sales made on and after that date.
However, qualifying items ordered (under contract) prior to September 1 are exempt “provided that the purchaser takes delivery of the aircraft or the machinery or equipment on or after September 1, 2015.” Please see New York Department of Taxation and Finance TSB-M-15(3) for additional information and examples.
Remember, the exemption is not valid without a valid Exempt Use Certificate. Learn how to manage exemption certificates in the cloud.