The (State) Tax Man Cometh: So be sure to plan for state taxes when buying your airplane
Overview
While it’s tempting to focus only on federal tax issues when buying a personal or business-use aircraft, state taxes need to be considered as well, because many states impose various types of sales, use and property taxes that can be significant. And many states are becoming much more aggressive in tracking down these aircraft in order to assert those taxes against the owners. This article focuses on the importance of taking a closer look at the state tax ramifications before purchasing an airplane.