Wisconsin Administrative Code › Department of Revenue › Chapter Tax 11 - Sales And Use Tax › Subchapter IX - Types of Tangible Personal Property and Items, Property, and Goods Under s. 77.52 (1) (b), (c), and (d), Stats › Section Tax 11.84 - Aircraft

Current through June 24, 2024
(1) GENERAL.
(a) The sales and use tax applies to the
				sales price from the sale, license, lease, or rental of aircraft. The sales and
				use tax also applies to the sales price from the sale of accessories,
				components, attachments, parts, supplies, and materials for aircraft, unless
				the item qualifies as a "part used to modify or repair an aircraft" as provided
				in sub. (3) (c).
(b) The occasional
				sale of an aircraft in Wisconsin is taxable unless one of the following
				applies:
1. The transfer is to the spouse,
				parent, stepparent, father-in-law, mother-in-law, child, stepchild, son-in-law,
				or daughter-in-law of the transferor; the aircraft was previously registered or
				titled in Wisconsin in the transferor's name, if required to be registered or
				titled; and the transferor is not engaged in the business of selling
				aircraft.
2. The sale is by a
				nonprofit organization meeting the requirements in s. Tax 11.35
				(4).
(c) Section
				77.61(1) (a),
				Stats., provides that no aircraft may be registered in Wisconsin unless the
				registrant presents proof that the sales tax has been paid or a valid exemption
				was claimed. If the registrant does not present proof that the tax has been
				paid, the registrant shall pay the tax to the department of transportation at
				the time the aircraft is registered or titled in Wisconsin. The tax applies to
				aircraft registered or customarily hangared or both in Wisconsin, even though
				the aircraft also may be used out-of-state. If the purchase of an aircraft
				subject to Wisconsin use taxes was subject to a sales or use tax in the state
				in which the purchase was made or in a state where the aircraft was stored,
				used, or consumed prior to being stored, used, or consumed in Wisconsin, the
				amount of the sales or use taxes paid to the other state or states shall be
				applied as a credit against and deducted from, to the extent thereof, the
				Wisconsin state and county use taxes imposed on the storage, use, or
				consumption of the aircraft in Wisconsin.
(d) The use tax does not apply to aircraft
				for an individual's personal use purchased by a nonresident outside this state
				90 days or more before bringing the aircraft into Wisconsin in connection with
				a change of domicile to this state.
(e) The use tax does not apply to aircraft
				registered in Wisconsin when all of the following requirements are fulfilled:
1. The aircraft is purchased in another
				state, as determined under s.
				77.522, Stats.
2. The aircraft's owner or lessee has paid
				all of the sales and use taxes imposed in respect to it by the state where it
				was purchased.
3. The owner or
				lessee is one of the following:
a. A
				corporation, and that corporation and all corporations with which that
				corporation may file a consolidated return for federal income tax purposes,
				neither is organized under the laws of Wisconsin nor has real property or other
				tangible personal property, except aircraft and property such as hangars,
				accessories, attachments, fuel, and parts required for operation of aircraft,
				in Wisconsin at the time the aircraft is registered in Wisconsin.
b. A partnership, and all the corporate
				partners fulfill the requirements in subd. 3. a., none of the general partners
				or limited partners who have management or control responsibilities is
				domiciled in Wisconsin and the partnership has no other tangible personal
				property and no real property, except aircraft and property such as hangars,
				accessories, attachments, fuel, and parts required for operation of aircraft,
				in Wisconsin at the time the aircraft is registered in Wisconsin.
bm. A limited liability company and all of
				the corporate members fulfill the requirements under subd. 3. a., and none of
				the managers and none of the members who has management or control
				responsibilities is domiciled in Wisconsin and the limited liability company
				has no other tangible personal property and no real property, except aircraft
				and property such as hangars, accessories, attachments, fuel, and parts
				required for operation of aircraft, in Wisconsin at the time the aircraft is
				registered in Wisconsin.
c. An
				individual not domiciled in Wisconsin.
d. An estate, trust, cooperative, or
				unincorporated cooperative association, and that estate, that trust and its
				grantor or that cooperative or association does not have real property or other
				tangible personal property, except aircraft and property such as hangars,
				accessories, attachments, fuel, and parts required for operation of aircraft,
				in Wisconsin at the time the aircraft is registered in
				Wisconsin.
4. The
				department has not determined that the owner, if the owner is a corporation,
				trust, partnership, or limited liability company, was formed to qualify for the
				exemption from Wisconsin use tax.