Is There Sales Tax On Buying A Used Aircraft?

[GeneralT001]

Looking to buy an aircraft but not liking the idea of spending another $15,000 if there is sales tax on top of the purchase price.

If it is a private sale (person to person) is there tax?

If it is bought from a company then will you have to pay tax?

[ta2too]

1 minute ago, GeneralT001 said:

Looking to buy an aircraft but not liking the idea of spending another $15,000 if there is sales tax on top of the purchase price.

If it is a private sale (person to person) is there tax?

If it is bought from a company then will you have to pay tax?

It depends where you live. There are different rules in different states.

There is no sales tax on planes, parts, Avionics, etc.in Massachusetts. However, It's "Taxachusetts" for everything else

[toto]

Yep. You’ll want to check with your state tax authority or a tax professional in the state. 

[Ragsf15e]

If there is, you can count on paying it even if it’s a private, person to person deal.  The tax people will keep an eye on faa registry and aircraft locations.  They will eventually find you.

 Live in Washington and had to pay “use tax” when I moved here.  I did not have to pay sales tax when i bought it in Texas, so just moving can trigger a tax.  It’s very state dependent.

[GeneralT001]

Should have mentioned I'm in Canada (probably worse for taxes)

[toto]

Just now, GeneralT001 said:

Should have mentioned I'm in Canada (probably worse for taxes)

Ah. Then take my post above and replace “state” with “province”

 

[Danb]

I’d consult with an aviation tax attorney in your province, it most likely is quite an expense, especially if over $100,000 which I believe kicks in a luxury tax in combination with PST tax, you could be hit with federal, local tax and provincial tax. Ask some friends at your local airport prior to making your deal since the likelihood may be a dealbreaker.  We have loopholes in the states depending where we live in C I have no clue. Good luck I hope you can get your plane and enter into the joy of flight.

D

[Aerodon]

Yes, even if you buy it privately from out of province, the PST guys will eventually track you down and ask for 12%.  If you buy from a dealer they are supposed to collect GST/HST/PST.

Aerodon (BC)