Section Tax 11.84 - Aircraft(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.(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.Wis. Admin. Code Department of Revenue Tax 11.84
Cr. Register, November, 1977, No. 263, eff. 12-1-77; am. (2) (b) 1. and 2., Register, January, 1983, No. 325, eff. 2-1-83; am. (2) (a) 2. and (3), Register, June, 1983, No. 330, eff. 7-1-83; am. (4) (e), Register, July, 1987, No. 379, eff. 8-1-87; am. (1) (b) 3., cr. (1) (d), Register, April, 1990, No. 412, eff. 5-1-90; am. (1) (c), cr. (1) (e) and (3) (b), renum. (3) (intro.) to be (3) (a), Register, June 1991, No. 426, eff. 7-1-91; am. (1) (b) 1., (c), (2) (b), (3), (4) (intro.) and (b), Register, April, 1993, No. 448, eff. 5-1-93; CR 02-128: am. (1) (b) 1. and 2., (c) and (4) (a) and (c), renum. (2) (c) to be (2) (c) (intro.) and am., cr. (2) (c) 1. to 4., Register July 2003 No. 571, eff. 8-1-03; EmR0924: emerg. am. (1) (a), (b) 1., (c), (e) 1., 3. a., b., d., 4., (2) (a), (c) (intro.), (3), (4) (intro.) and (c) to (e), cr. (1) (e) 3. bm., eff. 10-1-09; CR 09-090: am. (1) (a), (b) 1., (c), (e) 1., 3. a., b., d., 4., (2) (a), (c) (intro.), (3), (4) (intro.) and (c) to (e), cr. (1) (e) 3. bm. Register May 2010 No. 653, eff. 6-1-10; CR 12-014: r. and recr. (1) (b), r. (2) (c) 2., 3., am. (2) (c) 4., cr. (4) (g) to (i) Register August 2012 No. 680, eff. 9-1-12.Amended by, CR 16-053: am. (1) (a), (c), (2) (a) (title), 2., r. (2) (a) 3., am. (3) (title), (a), r. and recr. (3) (b), cr. (3) (c), (4) (j) Register June 2018 No. 750, eff. 7/1/2018Amended by, CR 22-044: am. (1) (c) Register June 2023 No. 810, eff. 7/1/2023Section 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.