Aircraft purchase and sales tax exemption?

[cbmontgo]

Hi,

I am a student pilot (21 hours) looking to buy an airplane. I just read something regarding the Texas tax policy that states that students are exempt from sales taxes if they are in an FAA-approved flight school and are diligently pursuing a pilot certificate. Anyone know if this is a clear-cut as it seems?

I am looking at a $ 56,000 airplane and this would save me the 8.25% texas sales tax.

Here is what it says:

"Students
A student enrolled in an FAA-approved program may claim a tax exemption when renting aircraft for flight training, including solo flights that are approved (as evidenced by written endorsement in the student's logbook) by an appropriately rated flight instructor. An instructor's endorsement may cover a series of flights.
The student must include the following information when completing an exemption certificate claiming sales tax exemption:
The student must identify the flight school (name and address), or
If the student is not enrolled in a flight school, the student must list his or her primary flight instructor with the instructor's address.
The student must maintain evidence that he or she is in pursuit of flight rating. Evidence may include a logbook endorsement for simulator training, receipts and scores for tests administered by a flight school or instructor, or an instructor's endorsement as documented in the student's and instructor's flight logbook. Without evidence that the student is in pursuit of flight rating, tax will be due on aircraft rentals."

Thoughts? Anyone have experience with this?

[tdfuller]

I just bought a plane a month ago here in NC. First, after reading your text, it seems as if the sales tax exemption is for rental, not purchase, of an aircraft as a student at an FAA approved school.

My plane sold for more than your list price, and my tax, all NC states sales tax was $1,500. NC caps aircraft sales tax at $1,500, as do many states. Local property tax is another issue.

In NC, the buyer only has to pay the tax if they buy it through a dealer or broker (a business that sells aircraft), but not required if buying from an individual or business that only on occasion sells aircraft.

I know this is NC and won't help much for Texas, but try searching Google, for the Texas Department of Revenue, then "aircraft sales" under the Texas DOR website.

[cbmontgo]

Thanks for the reply, tdfuller. You're right; I did quote an exemption in regards to renting in Texas. Here's the reference to purchasing:

Exemptions
No sales and use tax is due if the aircraft is purchased, leased, or rented by a:

licensed and certificated carrier. The carrier must be authorized by the Federal Aviation Administration (FAA) to operate as a common or contract carrier, and use the aircraft exclusively to transport persons or property for hire in the regular course of business.


flight school, flight instructor, or student. The school, instructor, or student must use the aircraft exclusively for FAA-approved flight instruction.

I hope that this means I am exempt. I'll just see what happens, but it would be nice not to have to pay that $$.

Thanks--