Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 58 - MISCELLANEOUS › Section 58.8 - Commercial airport and aircraft operators

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Definitions.
The
					 following words and terms, when used in this chapter, have the following
					 meanings, unless the context clearly indicates otherwise:
Casual sales
-A sale of an aircraft by a
						person not engaged in the business of selling aircraft.
Commercial aircraft operator
-A person,
						excluding scheduled airlines, who is engaged in any of the following activities
						as a business for compensation:
(i)
					 Transporting persons or property as a common carrier.
(ii) Selling or leasing of
					 aircraft.
(iii) Providing flight
					 instruction.
Common carrier
-An air carrier who has
						obtained a Certificate of Convenience from the Civil Aeronautics Board, or its
						successor, for the purpose of transporting persons or property.
Fair rental value
-The rental price which
						the owner, lessor or other operator of an aircraft normally charges for the
						rental of the aircraft; or the rental price which would be charged on the open
						market for the rental of a similar aircraft for a similar period of time under
						similar circumstances. When the fair rental value is unknown, the Department
						will recognize 2.0 % of the purchase price as a monthly fair rental value of an
						aircraft provided the purchase price represents the fair market value of such
						aircraft.
Flight instruction
-Instruction provided
						in connection with obtaining a student license, private rating, commercial
						rating, instrument rating, instructor rating, transport rating, jet rating,
						instrument instructor rating or any rating or course approved by the Federal
						Aviation Administration.
Prevailing market price
-The amount which
						would be charged for an aircraft on the open market at the time and place of
						transfer; or the amount which would be charged on the open market for a similar
						aircraft under similar circumstances.
Purchase price
-The total value paid or
						delivered, or promised to be paid or delivered, whether it be money or
						otherwise in the complete performance of a sale or purchase including delivery
						charges paid to the seller. The following items may be excluded from purchase
						price provided they are separately stated:
(i) Tangible personal property taken in trade
					 or exchange.
(ii) Reasonable
					 interest and finance charges in connection with an installment sale.
Rental or lease
-The transfer of
						possession or custody of an aircraft, including an aircraft provided or used in
						connection with flight instruction, but the term does not include the service
						of a common carrier.
Rental or lease payment
-The total value
						paid or delivered, or promised to be paid or delivered, whether it be money or
						otherwise, for any period under a rental or lease arrangement:
(i) Including payments for
					 maintenance, insurance or repair paid by the lessee to the lessor, or directly
					 to a repairman or insurance carrier.
(ii) Excluding separately stated charges for
					 aircraft fuel sold by the lessor or purchased by the lessee and reimbursed by
					 the lessor. To qualify for exemption, the charges for fuel shall:
(A) Be separately stated on the rental or
					 lease invoice and reflect the quantity and total charge.
(B) Not exceed 110% of the manufacturers
					 consumption rate for the aircraft leased.
(iii) Excluding separately stated charges for
					 instructor fees if such fees are identified.
Resident
-
(i) A natural person who is domiciled in this
					 Commonwealth, or who maintains a permanent place of abode within this
					 Commonwealth and spends in the aggregate more than 60 days of the year within
					 this Commonwealth.
(ii) A
					 corporation incorporated under the statutes of this Commonwealth, or authorized
					 to do business or doing business within this Commonwealth, or maintaining a
					 place of business within this Commonwealth.
(iii) An association, fiduciary, partnership
					 or other entity domiciled in this Commonwealth, or authorized to do business or
					 doing business within this Commonwealth, or maintaining a place of business
					 within this Commonwealth.
Use
-The exercise of any right or power
						incidental to the ownership, custody or possession of tangible personal
						property including but not limited to the transportation, storage and
						consumption.