Tax Type
Aircraft Sales and Use Tax
Description
Transfer of aircraft for stock of corporation
Topic
Taxability of Persons and Transactions
Date Issued
06-29-1988
June 29, 1988
Re: Ruling Request/ Aircraft Sales and Use Tax
Dear*****************
This will reply to your letter of April 28, 1988 seeking a ruling on the application of the aircraft sales and use tax to the transfer of an aircraft for stock of a corporation.
According to your letter you are one of two sole shareholders of the********** (taxpayer). In exchange for an aircraft owned by the other shareholder, plus $1,500 cash, the taxpayer issued 58% of its common shares outstanding to the shareholder. In addition, you received 42% of such shares outstanding in exchange for payment of the sum of to the taxpayer. The taxpayer has only one class of stock which is the common mentioned above. Accordingly, you ask whether the taxpayer's acquisition of the aircraft from the other shareholder makes the taxpayer liable for any aircraft sales and use tax.
Based on the facts presented, I find no basis in the Virginia aircraft sales and use tax law or regulations to exempt the transfer of aircraft described above. In this connection, please refer to a ruling recently issued by the department involving facts analogous to those presented in this case, a copy of which is enclosed.
I hope that the foregoing has responded to your question, but let the department know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner