Idaho Administrative Code
Title IDAPA 35 - Tax Commission, State
Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES
Section 35.01.02.038 - FLYING CLUBS
Current through August 31, 2023
Sections 63-3612, 63-3613, 63-3622, Idaho Code
01. In General. A flying club is an association of persons who have purchased or leased aircraft for the purpose of renting the aircraft to club members. The aircraft rentals to the club members are considered bare equipment rentals and are taxable at a reasonable rental value. (3-31-22)
02. Rental or Sale of Aircraft to Members. The flying club is a retailer who is required to obtain a seller's permit and collect and remit sales tax. The sales tax, at the prevailing tax rate, is to be collected by the flying club and remitted to the Commission in the manner prescribed for other retailers. The tax is applicable whether the aircraft is sold or is rented on an hourly, daily, weekly, monthly, or any other basis. The flying club, primarily engaged in the business of making bare equipment rentals to club members, may purchase or lease the aircraft without paying sales tax by giving to its vendor a valid resale certificate as required by Rule 128 of these rules. (3-31-22)
03. Other Charges to Members. Charges for membership fees are generally taxable. If the membership fee is in no way related to the rental of the aircraft, the fee is not taxable. Charges for flight instruction, if such charges are separately stated, are not taxable. However, charges for logbooks and flight instruction manuals are taxable. (3-31-22)
04. Aircraft Repair Parts. If the flying club is responsible for the maintenance of the aircraft, the club may purchase the necessary repair and replacement parts without paying tax by providing a valid resale certificate. See Rule 128 of these rules. (3-31-22)
05. Cross-Reference. Aircraft and Flying Services see Rule 037 of these rules. (3-31-22)
