Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.02 - IDAHO SALES AND USE TAX ADMINISTRATIVE RULES › Section 35.01.02.037 - AIRCRAFT AND FLYING SERVICES

Current through August 31, 2023
Sections
				63-3607A, 63-3612,
				63-3613,
				63-3622C,
				63-3622GG, Idaho Code
01.
Definitions
. For the
			 purposes of this rule, the following terms have the following meanings:
			 (3-31-22)
a. Aircraft. The term aircraft means
			 any contrivance now known or hereafter invented, used, or designed, for
			 navigation of or flight in the air. (3-31-22)
b. Recreational Flight. The hiring on demand
			 of an aircraft with a pilot to transport passengers for a recreational purpose.
			 Examples are a pleasure ride, sightseeing, wildlife viewing, hot air balloon
			 rides, or other similar activities. (3-31-22)
c. Freight. Goods transported by a carrier
			 between two (2) points. Freight does not include goods which are being
			 transported for the purpose of aerial spraying or dumping. See Subsection
			 037.06 of this rule.
			 (3-31-22)
d. Transportation of
			 Passengers. The transportation of passengers means the service of transporting
			 passengers from one (1) point to another. It does not include survey flights,
			 recreational or sightseeing flights, nor does it include any flight that begins
			 and ends at the same point. (3-31-22)
e. Nonresident Individual. An individual as
			 defined by Section
			 63-3014, Idaho Code.
			 (3-31-22)
f. Nonresident Businesses
			 and Other Organizations. A corporation, partnership, limited liability company,
			 or other organization will be considered a nonresident if it is not formed
			 under the laws of the state of Idaho, is not required to be registered to do
			 business with the Idaho Secretary of State, does not have significant contacts
			 with this state, and does not have consistent operations in this state. A
			 limited liability company (LLC) or other legal entity formed by an Idaho
			 resident under the laws of another state primarily for the purpose of
			 purchasing and owning one (1) or more aircraft is not a nonresident. The use of
			 an aircraft owned by such an entity will be subject to use tax upon its first
			 use in Idaho. (3-31-22)
g. Day. For
			 the purpose of this rule any part of a day is a day. (3-31-22)
h. Transportation of freight or passengers
			 for hire. "Transportation of freight or passengers for hire" means the business
			 of transporting persons or property for compensation from one (1) location on
			 the ground or water to another. (3-31-22)
i. Common Carrier. The operation of an
			 aircraft in the transportation of freight or passengers for hire by members of
			 the public. When operating as a common carrier, the operator or owner of an
			 aircraft usually charges a rate that will generate a profit. For flights in
			 which federal regulations limit or minimize this profit, the aircraft is likely
			 not operating as a common carrier. (3-31-22)
j. Public. The public does not include:
			 (3-31-22)
i. Owners or operators of the
			 aircraft; (3-31-22)
ii. Employees
			 of the aircraft owner or operator; (3-31-22)
iii. Guests of the aircraft owner or
			 operator; (3-31-22)
iv. Any of the
			 above with the same relationship to a parent of the aircraft owner, a
			 subsidiary of that parent, or a subsidiary of the aircraft owner;
			 (3-31-22)
v. An individual or
			 entity flying under a time sharing agreement which is an arrangement where an
			 aircraft owner leases his aircraft with flight crew to another individual or
			 entity and the aircraft owner limits the amount charged in accordance with
			 federal regulations; or (3-31-22)
vi. An individual or entity flying under an
			 interchange agreement which is an arrangement where an aircraft owner leases
			 his aircraft to another aircraft owner in exchange for equal time on the other
			 owner's aircraft and any fees charged may not exceed the difference between the
			 costs of owning, operating, and maintaining the two (2) aircraft.
			 (3-31-22)