SALT Report 2771 – The Minnesota Department of Revenue updated its sales tax fact sheet regarding aircraft. The fact sheet provides that, effective July 1, 2013, parts and equipment needed to repair or maintain aircraft are exempt from sales tax, this includes related installation charges to upgrade or improve the aircraft. However, the exemption does not apply to tools or equipment used to perform the repair. To qualify for this exemption, the aircraft must be operated under Federal Aviation Regulations 91 or 135.
The fact sheet also discusses taxable and nontaxable sales, aircraft registration, tax payments, aircraft trades, aircraft dealers and lessors, nonprofit incorporated flying clubs, nonresidents, lease-backs between owners and fixed-base operators, and nonresident sales.
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