Tax Type
Aircraft Sales and Use Tax
Description
Aircraft purchased out-of-state; Destroyed after first use in Virginia
Topic
Property Subject to Tax
Date Issued
01-18-1984
January 18, 1984
Re: Aircraft Sales and Use Tax
Dear ****
This is in reply to your letter dated September 23, 1983 and subsequent information submitted in regard to the aircraft sales and use tax on your aircraft.
FACTS
On August 5, 1983, you paid $****** for an aircraft in Maryland. The aircraft was delivered to *****, Virginia on August 10, 1983. On August 13, 1983, after you operated the aircraft one time, you destroyed the plane while landing. Following the accident, you registered the aircraft with the Department of Aviation and also released the plane to your insurance company.
Because of the extenuating circumstances, you take the position that your aircraft should not be subject to the Virginia aircraft sales and use tax.
DETERMINATION
Virginia Code § 58-685.29 imposes a tax of two percent of the sales price of each aircraft sold in this state. If the aircraft was not sold in this state but is required to be licensed for use in this state, the same code § requires a tax of two percent of the sale price; provided that if the aircraft is first required to be licensed in this state six months or more after its acquisition, the tax shall be two percent of its market value.
For your information, § 58-685.37, Code of Virginia, provides a credit to the Virginia aircraft sales and use tax for similar tax paid to another state on the aircraft. No information has been provided showing such a tax was paid in Maryland.
Based on the information provided, I must deny any relief from the Virginia aircraft sales and use tax and the two percent tax must be applied to your purchase price of
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner