Kentucky aircraft purchase and taxes

Supereri

Supereri

Pre-takeoff checklist
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Supereri
I'm in the process of, hopefully, buying an aircraft from an owner in Kentucky. I live in AZ. I notice on the AOPA site that Kentucky doesn't have the "fly away rule". So does this mean I'll end up paying Kentucky sales tax on the purchase? AOPA says they do have the casual sale "yard sale rule", but I can't seem to find what this means.

It's not a huge difference, but my state taxes are a bit cheaper (5.6% vs 6%). and the extra .4% doesn't get credited to my city sales tax.
 
I just bought a plane in Kentucky in November and I haven't heard anything from anybody.

Between me and my dad, we've purchased four airplanes in the last 10 years and never been taxed on any of them.
 
I believe Kentucky has a casual sale exemption, not a fly away exemption. My non paid for opinion is you are tax exempt in Kentucky. I'd have to look up Arizona to see if they will impose.

Just because @SixPapaCharlie has never paid tax doesn't mean he has been in compliance. But he doesn't live in taxtopia like I do. ;)
 
"Casual Sale Exemption – Some states exempt aircraft sales from sales tax if the aircraft seller is not an aircraft dealer and only occasionally sells an aircraft. However, in many cases when the seller is exempt from sales tax, the buyer may still be subject to the use tax provisions of the
sales and use tax regulations."

Kentucky state tax publication
 
I purchased an airplane in 2018 from a private seller in Utah, flew it to AZ and registered it.

answered a questionnaire and was determined to owe zero.

this was a few years ago.
 
Last edited:
Rgbeard said:
I purchased an airplane in 2018 from a private seller in Utah, flew it to AZ and registered it.

answered a questionnaire and wes determined to owe zero.

this was a few years ago.
Click to expand...
Ah, I found the casual exemption for Arizona.

"Casual sales between individuals are the exception and not subject to use tax. Items purchased for use in Arizona from people who make isolated or occasional sales, and who are not engaged in the business of selling tangible personal property at retail, are not subject to use tax."
 
It's crazy to think the number of times "someone" has been taxed for the purchase of the same item. My airplane is nearly 50 years old, how many times has it changed hands? If each sale of the aircraft required another "sales tax," when does it end? How many times can the government tax the same item? There has to be a logical limit that exists somewhere. Right?
 
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