Wisconsin Administrative Code
Department of Revenue
Chapter Tax 11 - Sales And Use Tax
Subchapter IX - Types of Tangible Personal Property and Items, Property, and Goods Under s. 77.52 (1) (b), (c), and (d), Stats
Section Tax 11.84 - Aircraft
Universal Citation: WI Admin Code ยง Tax 11.84
Current through August 26, 2024
(1) GENERAL.
(a) The sales and use tax applies to the
sales price from the sale, license, lease, or rental of aircraft. The sales and
use tax also applies to the sales price from the sale of accessories,
components, attachments, parts, supplies, and materials for aircraft, unless
the item qualifies as a "part used to modify or repair an aircraft" as provided
in sub. (3) (c).
(b) The occasional
sale of an aircraft in Wisconsin is taxable unless one of the following
applies:
1. The transfer is to the spouse,
parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law,
or daughter-in-law of the transferor; the aircraft was previously registered or
titled in Wisconsin in the transferor's name, if required to be registered or
titled; and the transferor is not engaged in the business of selling
aircraft.
2. The sale is by a
nonprofit organization meeting the requirements in s. Tax 11.35(4).
(c) Section
77.61(1) (a),
Stats., provides that no aircraft may be registered in Wisconsin unless the
registrant presents proof that the sales tax has been paid or a valid exemption
was claimed. If the registrant does not present proof that the tax has been
paid, the registrant shall pay the tax to the department of transportation at
the time the aircraft is registered or titled in Wisconsin. The tax applies to
aircraft registered or customarily hangared or both in Wisconsin, even though
the aircraft also may be used out-of-state. If the purchase of an aircraft
subject to Wisconsin use taxes was subject to a sales or use tax in the state
in which the purchase was made or in a state where the aircraft was stored,
used, or consumed prior to being stored, used, or consumed in Wisconsin, the
amount of the sales or use taxes paid to the other state or states shall be
applied as a credit against and deducted from, to the extent thereof, the
Wisconsin state and county use taxes imposed on the storage, use, or
consumption of the aircraft in Wisconsin.
(d) The use tax does not apply to aircraft
for an individual's personal use purchased by a nonresident outside this state
90 days or more before bringing the aircraft into Wisconsin in connection with
a change of domicile to this state.
(e) The use tax does not apply to aircraft
registered in Wisconsin when all of the following requirements are fulfilled:
1. The aircraft is purchased in another
state, as determined under s.
77.522, Stats.
2. The aircraft's owner or lessee has paid
all of the sales and use taxes imposed in respect to it by the state where it
was purchased.
3. The owner or
lessee is one of the following:
a. A
corporation, and that corporation and all corporations with which that
corporation may file a consolidated return for federal income tax purposes,
neither is organized under the laws of Wisconsin nor has real property or other
tangible personal property, except aircraft and property such as hangars,
accessories, attachments, fuel, and parts required for operation of aircraft,
in Wisconsin at the time the aircraft is registered in Wisconsin.
b. A partnership, and all the corporate
partners fulfill the requirements in subd. 3. a., none of the general partners
or limited partners who have management or control responsibilities is
domiciled in Wisconsin and the partnership has no other tangible personal
property and no real property, except aircraft and property such as hangars,
accessories, attachments, fuel, and parts required for operation of aircraft,
in Wisconsin at the time the aircraft is registered in Wisconsin.
bm. A limited liability company and all of
the corporate members fulfill the requirements under subd. 3. a., and none of
the managers and none of the members who has management or control
responsibilities is domiciled in Wisconsin and the limited liability company
has no other tangible personal property and no real property, except aircraft
and property such as hangars, accessories, attachments, fuel, and parts
required for operation of aircraft, in Wisconsin at the time the aircraft is
registered in Wisconsin.
c. An
individual not domiciled in Wisconsin.
d. An estate, trust, cooperative, or
unincorporated cooperative association, and that estate, that trust and its
grantor or that cooperative or association does not have real property or other
tangible personal property, except aircraft and property such as hangars,
accessories, attachments, fuel, and parts required for operation of aircraft,
in Wisconsin at the time the aircraft is registered in
Wisconsin.
4. The
department has not determined that the owner, if the owner is a corporation,
trust, partnership, or limited liability company, was formed to qualify for the
exemption from Wisconsin use tax.
(2) TAXABLE SALES.
(a)
Aircraft, supplies, accessories,
and ground equipment. The sales price received from the following
shall be taxable:
1. The sale, license, lease,
or rental of aircraft by any retailer registered or required to be registered
to collect Wisconsin sales or use tax, regardless of whether the retailer is an
aircraft dealer.
2. The sale and
delivery in Wisconsin of oil and other supplies, accessories, and ground
equipment for aircraft, regardless of where the aircraft is flown or used.
Sales of general aviation fuel subject to taxation under ch. 78, Stats., are
exempt from the sales and use tax.
Examples:
1) Engine oil, gear lubricants, hydraulic
fluids, fuel additives, anti-seize coatings, deicing and anti-icing fluids,
oxygen, cleaners, and waxes and polishes are examples of supplies for
aircraft.
2) Pens, kneeboards,
maps, charts, logbooks, flashlights, flight bags, headsets, tools, first-aid
kits, life jackets, inflatable rafts, and items such as radios, avionics,
coolers, air conditioners, fire extinguishers, carbon monoxide detectors and
oxygen equipment, when such items are portable rather than built into the
aircraft, are examples of accessories for aircraft.
3) Equipment used to deice aircraft, aircraft
tugs, engine preheaters, wheel chocks, tie-down equipment, aircraft covers and
repair tools and diagnostic equipment are examples of ground equipment for
aircraft.
(b)
Parking.
1. Section
77.52(2) (a) 9,
Stats., imposes the tax on "Parking or providing parking space for
motor vehicles and aircraft for a consideration...." "Parking"
includes occupying space in a hangar when an aircraft is available for use
without requiring a substantial expenditure of time or effort to make it
operational.
Examples:
1) A ready-to-fly aircraft occupying space in
a hangar and available for immediate use is parked.
2) An aircraft occupying space in a hangar
with its wings off is not parked, since it would require a substantial
expenditure of time or effort to make it operational.
2. Indoor parking, such as single or multiple
"T" hangar parking, and outdoor, or "tie-down," parking are
taxable.
(c)
Other taxable receipts. The sales price from charges for the
following are taxable:
1. Aerial photographs
and maps.
4. Towing a banner that
is not provided by the person towing it.
(3) EXEMPT SALES OF AIRCRAFT AND PARTS USED TO MODIFY OR REPAIR AIRCRAFT.
(a) Section
77.54(5) (a) 1,
Stats., provides an exemption for the sale of aircraft, including accessories,
attachments, and fuel therefor, to persons using the aircraft as certified or
licensed carriers of persons or property in interstate or foreign commerce.
Scheduled air carriers and commuter carriers with air carrier operating
certificates shall qualify for this exemption. This exemption does not apply to
persons with air worthiness certificates which indicate certain safety
standards have been met, if they do not otherwise qualify.
(b) Section
77.54(5) (a) 2,
Stats., provides an exemption for sales of aircraft to persons who are not
residents of this state who will not use such aircraft in this state other than
to remove the aircraft from this state. The exemption also applies to repair or
other services performed on the aircraft.
(c) Section
77.54(5) (a) 3,
Stats., provides an exemption for sales of parts used to modify or repair
aircraft. For purposes of this exemption, the following definitions apply:
1. "Part" means a durable unit of definite,
fixed dimensions that is attached to the aircraft.
2. "Parts used to modify or repair aircraft"
include tires, oil filters, spark plugs, engine cowls, built-in radios and
avionics equipment, strobes, and flap cable. "Parts used to modify or repair
aircraft" does not include supplies, accessories, or ground equipment in sub.
(2) (a) 2., and does not include parts used in the original construction of an
aircraft as such parts are not used to modify or repair an aircraft.
(4) NONTAXABLE SERVICES. Amounts received from the following services are not taxable:
(a) Except as provided in sub. (2) (c),
transporting customers or property for hire when the customer only designates
the time of departure and destination while the owner retains control over the
aircraft in all other respects.
(b)
Flight instruction when the fees for the instruction are separately stated from
the charge for the rental of the aircraft.
(c) Advertising promotions such as skywriting
and banner towing if the person towing the banner also provides it, except when
the aircraft is leased to a person who provides the person's own
pilot.
(d) Emergency rescue
service, forest fire spotting, and pipeline inspection service, except where
the aircraft is leased to a company which provides its own pilot.
(e) Crop dusting, spraying, fertilizing, and
seeding a farmer's crops. A person in the business of crop dusting, spraying,
fertilizing, and seeding for farmers may purchase weed killers, fertilizer, and
seed without tax for resale, if these items are used in conjunction with but
not incidental to providing the service.
(f) Landing fees.
(g) Sightseeing flights.
(h) Carrying a skydiver.
(i) Towing a hang glider and pilot.
(j) Repair, service, alteration, fitting,
cleaning, painting, coating, towing, inspection, and maintenance of any
aircraft or any part used to modify or repair an aircraft.
Section Tax 11.84 interprets ss. 77.52(2) (a) 9 and 10., 77.53 (16), (17r), and (18), 77.54 (5) (a) and (7) and 77.61, Stats.
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