Aircraft Sales Tax

Any civil aircraft located in Utah must have a current certificate of registration to operate in the state. Aircraft subject to registration are considered vehicles, and are subject to sales and use tax. If the seller of the aircraft is a licensed vehicle dealer, the seller is responsible to collect the tax at purchase. Otherwise, the purchaser is responsible for paying sales and use tax directly to the Utah State Tax Commission using form TC-828, Aircraft Sales and Use Tax Remittance Form. Aircraft located in Utah are required to be registered through the Utah Department of Transportation, Division of Aeronautics. Additional information is available at udot.utah.gov/aeronautics.

Frequently Asked Questions

What is sales and use tax?

Sales and use tax is a transaction tax that applies to most purchases of tangible personal property. When a seller does not charge Utah sales tax, the purchaser is responsible for paying the tax using Tax Commission form TC-828, Aircraft Sales and Use Tax Remittance Form.

How do Utah tax laws, rules, and regulations require sales or use tax to be paid on aircraft?

Under Utah law, all vehicles (this includes aircraft) subject to titling or registration must show that sales tax was paid to the state. Any civil aircraft located in Utah must also have a current certificate of registration to operate in Utah. If the seller of the aircraft is a licensed vehicle dealer, the seller is to collect the tax at purchase. Otherwise, the purchaser is responsible for paying sales and use tax directly to the Utah State Tax Commission using form TC-828, Aircraft Sales and Use Tax Remittance Form. Aircraft are registered through Utah Department of Transportation, Division of Aeronautics. Additional information is available at udot.utah.gov/aeronautics.

What is my sales tax rate?

Your sales tax rate depends on where your aircraft is based. Rates are listed by location at Utah Sales & Use Tax Rates, or you can contact the Tax Commission at 801-297-2200 or 1-800-662-4335. Tax rates may change quarterly.

My aircraft is not registered in Utah, or is not subject to titling and registration in Utah. Do I owe Utah sales and use tax?

If the aircraft is airworthy and located or based in Utah (greater than six months, or the cumulative majority of a year), it must be registered in Utah to operate in the state. Utah sales and use tax is due at the time of the purchase. See What is sales and use tax? above for more information. If the aircraft is used, consumed, or stored in Utah, sales and use tax applies to the purchase. If the aircraft is not used, consumed, or stored in Utah, you can show that tax is not due by providing flight logs, a hanger rental agreement, or other documentation of the aircraft’s location.

If the aircraft is no longer airworthy, do I still have to pay sales tax?

Yes. Sales and use tax is a tax on the transaction, and the tax is based on the price of the aircraft when it was purchased, unlike a property tax, which is based on the current value of the property. The tax is due based on the purchase price of the aircraft, regardless of whether it is later damaged and loses value.

What if I already sold the aircraft in question?

Because sales and use tax is a tax on the purchase transaction, the tax is due on the transaction that occurred when you purchased the aircraft, regardless of whether you still own it.

If an airplane was purchased from a private individual, is it exempt from sales and use tax?

No. Although an exemption exists for “isolated or occasional sales,” that exemption does not apply to sales of vehicles that require registration, including aircraft. If an aircraft is purchased from a dealer who is licensed to collect Utah sales tax, the dealer should collect the sales tax. If tax is not collected when the aircraft is purchased, then the sales and use tax is due from the purchaser at the time of the aircraft’s registration.

How do I pay the tax at registration?

Aircraft must be registered annually with the Utah Department of Transportation, Division of Aeronautics. You should register your aircraft as soon as the registration with the FAA is complete.

How do I Calculate Sales Tax?

Calculate the sales tax by completing the bottom section of form TC-828, Aircraft Sales and Use Tax Remittance Form. Your sales tax rate depends on where your aircraft is based. See What is sales and use tax? above to find your rate. Verify the purchase price by providing a copy of the sales contract. If you have already paid the sales tax to a licensed aircraft dealer, provide a copy of your contract showing that sales tax has been collected. Write “Tax already paid” in the “Tax due” section of form TC-828.