Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
General rule.
Sales of airflight equipment to, and the storage, use, or
other consumption of such property by airline companies which are subject to
tax under Minnesota Statutes, sections
270.071 to
270.079
(hereinafter airflight property tax), are exempt. This part identifies the
airflight equipment that is exempted from tax imposed by Minnesota Statutes,
section
297A.62.
Subp. 2.
Definitions.
The definitions in this subpart apply to this part.
A. "Aircraft" means a contrivance used or
designed for the navigation of or flight in the air.
B. "Airflight equipment" means airplanes,
aircraft communications and navigational equipment, flight crew equipment,
flight simulators, hydraulics equipment, and all parts that are affixed and
become component parts including hydraulic fluid, parts necessary for the
repair and maintenance of the listed equipment, and any other property subject
to assessment under Minnesota airflight property tax. Airflight equipment does
not include airplanes with a gross weight of less than 30,000 pounds that are
used on intermittent or irregularly timed flights, lubricants, repair equipment
and tools, ramp equipment, or other equipment such as broilers, dishes, food
boxes, thermos jugs, blankets, and other equipment not subject to assessment
under Minnesota airflight property tax.
C. "Airline company" means a person who
undertakes, directly or indirectly, to:
(1)
engage in the business of transportation by aircraft of persons or property for
hire in interstate, intrastate, or international transportation on regularly
scheduled flights or on intermittent or irregularly timed flights;
(2) engage in the business of intermittent or
irregularly timed flights, flights arranged at the convenience of an airline
and a person contracting for transportation, or charter flights making three or
more flights into or out of Minnesota in a year; or
(3) hold out to the public that it will
undertake to transport property or persons as an air carrier, and enter into
contracts wherein it binds itself to so transport property or persons.
Airline company does not include a person who furnishes
casual transportation for hire by aircraft commonly owned and used for private
airflight purposes if the person furnishing the transportation does not hold
itself out to be engaged regularly in air transportation for
hire.
D.
"Indirectly" means to hold out to the public that a person will undertake to
transport persons or property by air and enter into contracts with shippers
wherein the person binds itself to discharge such undertakings with regard to
particular shipments. Indirect air carriers include travel agents, tour
operators, and social clubs which sell tours or air transportation, air freight
forwarders and others who were subject to rate regulation, or others who
operate very much like an air carrier.
Subp. 3.
Exemptions.
An airline company is exempt from sales and use tax when it
purchases airflight equipment if it is subject to Minnesota airflight property
tax on those purchases. The purchase of flight simulators is specifically
exempted in Minnesota Statutes, section
297A.82,
subdivision 4, paragraph (d). If an airline company is exempt from airflight
property tax, its purchases of airflight property are subject to sales and use
tax.
