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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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L


330.0000 Leases of Tangible Personal Property—In General—Regulation 1660

Annotation 330.1860

(a) In General


330.1860 Aircraft—Student Flight Instruction. Student flight instruction is ordinarily considered to be a use of the aircraft by an owner-instructor. If the aircraft is never leased to a qualified pilot, and is used for instructional purposes only, the student is regarded as obtaining the service of in-air flight instruction. As such, the transaction is not a lease because true possession and control over the aircraft is not transferred to the student.

On the other hand, if the aircraft is available for lease to any qualified pilot, and the student is charged a rental fee in the same amount as that charged to any lessee with a separate charge added for instruction, then the transaction is regarded as a true lease plus flight instruction. 5/13/94.