WPA State President Dave Lucke
Are “Flying Clubs” subject to sales tax?
Maybe. Several WPA
members that jointly own aircraft with other people have received
a letter from the Department of Revenue stating that they are
businesses that must collect sales tax on the revenue derived from
aircraft use and dues collected from members. Being your
humble servant, I have set out to research this situation.
all flying clubs are created equal. Many are commercial
business’s that “hold themselves out to the public”. These
flying clubs often will lease aircraft and then rent them to
pilots and students for travel and training. Purchases such
as the aircraft, fuel, avionics, maintenance, etc are tax exempt.
Sales tax is collected on the rental of the aircraft and dues
collected from the users group that may call itself a flying club.
In this case the “club” brings added value and added revenue to
the organization. These clubs are professionally managed and
have a place of business where the public can come and do