STATE TAX CHANGES NEL STUBBS, VP CONKLIN & DE DECKER, A JSSI COMPANY E very year, various states make changes to their tax laws that can affect general aviation aircraft. These changes can occur very quickly, as most of the state legislatures are only in session for a few months each year. Staying on top of these changes can be very challenging. The following are some of the changes. LOUISIANA Effective July 1, 2018, the state sales/use tax increased from 4% to 4.45%. MISSISSIPPI Effective July 1, 2018, rotary-wing aircraft are exempt from the state sales and use tax if delivered in state and removed within 48 hours, and first used in another state. NEW HAMPSHIRE Effective January 1, 2019, the aircraft registration fees will be repealed and replaced with an Operating Fee that is based on the weight of the aircraft. The amount of the fee for an antique aircraft, glider or experimental aircraft shall be $100. NEW JERSEY Effective January 1, 2018, the state sales/use tax rate decreased from 6.875% to 6.625%. NORTH DAKOTA Effective calendar year 2018, aircraft registration fees are determined based on the maximum permissible take- off weight only, and not based upon the aircraft age. OKLAHOMA Effective May 10, 2018, the existing common carrier exemption from the aircraft excise tax has been modi- fied to apply only to aircraft that are operated greater than 50% under Part 135 for unrelated parties. VIRGINIA Effective July 1, 2018 to July 1, 2022, there is an exemp- tion from retail sales and use tax for parts, engines and supplies used for maintaining, repairing or recondition- ing aircraft, including unmanned aerial systems. The exemption does not apply to tools and other equip- ment that does not become a part of the aircraft. WEST VIRGINIA Effective September 1, 2018, there is now an exemp- tion from the consumer sales and service tax and use tax for certain services and tangible personal property sold for the repair, remodeling and maintenance of aircraft operated under a fractional ownership program. Nel Stubbs is a Vice President of Conklin & de Decker, which is one of the world’s foremost lead- ers in aviation research, consulting and education. Nel has been in the business aviation industry for more than thirty years. She has consulted with numerous Fortune 500 companies and high net worth individuals on aviation tax related matters at both the federal and state levels and she is considered one of the foremost tax experts in the industry. Nel also has extensive experience in the areas of tax planning, cost and financial analysis, budgeting, air- craft ownership, operating structures and tax audits. Over the course of the last twenty-eight years Nel has worked with the Internal Revenue Service and various state departments of revenue and taxation regarding tax issues associated with general aviation aircraft and she is also an active participant in industry related tax activi- ties. She is a frequent speaker at seminars and industry forums and is widely published in the aviation trade press. Conklin & de Decker, founded in 1984, is a JSSI Company and its primary focus is providing fixed-wing and rotary-wing aircraft operating cost, performance and specification databases, main- tenance management software, financial management, fleet planning, market research, aviation tax issues and manage- ment seminars. The company also consults with and serves numerous high net worth individuals, corporations and govern- ment agencies worldwide. Nel is currently responsible for the management of Conklin & de Decker’s State Aviation Tax Guide for General Aviation, and oversight of the seminar program. Aviation Business Journal | 3rd Quarter 2018 75
