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BTLG Table of Contents > Sales and Use Tax Annotations > A > 105.0000 Aircraft > Annotation 105.0155

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105.0000 Aircraft—Regulation 1593

Annotation 105.0155

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105.0155 Lease to Common Carrier After Private Lease. As set forth in Regulation 1593(b)(1), whether a purchaser or lessee of an aircraft is using that aircraft as a common carrier of person or property, only the use of the aircraft during the first 12 consecutive months commencing with the first operational use of the aircraft will be considered. Thus, a lessor of an aircraft leasing the aircraft to private individuals and reporting tax based upon fair rental value for the first two years from the date of purchase must continue to report tax based upon fair rental value on a subsequent lease to a common carrier. In order for the common carrier exemption to apply, the aircraft must be used in common carriage for more than half of the twelve month test period. The test period commences with the first "operational use" of the aircraft. 11/21/89.