Missouri – Aircraft Parts and Accessories Not Taxable

SALT Report 1415 – The Missouri Department of Revenue issued a letter ruling regarding a taxpayer’s sales of aircraft parts and accessories. The taxpayer operates an aircraft repair station that is certified by the Federal Aviation Administration (FAA).  The taxpayer is authorized to repair aircraft and install and repair aircraft accessories however, due to the FAA certification the taxpayer is restricted by its federal license to performing strictly defined installations and repairs.
Section 144.030.2(40), RSMo, exempts from sales tax “beginning January 1, 2009, but not after January 1, 2015, materials, replacement parts, and equipment purchased for use directly upon, and for the modification, replacement, repair, and maintenance of aircraft, aircraft power plants, and aircraft accessories…”
Therefore, based on the above regulation the Department determined that the taxpayer is exempt from collecting and remitting Missouri sales tax on its sales of aircraft parts and accessories that are used in the repair and modification of its customer’s aircraft.
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