Indiana Aircraft Registration

During the 2017 session of the Indiana General Assembly, the legislature added a provision into SB 515 that creates a three month window that ends on September 30, 2017 for aircraft based outside of the state to be registered in Indiana and not pay sales/use tax that is required. As a result of Indiana’s tax law, many aircraft are not based here because the tax laws/registration requirements in other states are more favorable. These aircraft are legally registered in states that do not require the sales/use tax or have a lower rate. We know of aircraft based out of state for this reason. That is why we asked the legislature for their help in creating an opportunity for planes to be registered in Indiana where they are paying hangar fees and purchasing fuel and other services.

Example
A King Air 200 (purchase price of $1 million) is registered in a state that did not require sales/use tax to be paid. If the owner would want to register the plane in Indiana, the State would require $70,000 (7% sales/use tax rate multiplied by the $1 million purchase price) to be paid in order to be registered. With the passed legislation, this plane could now be registered in Indiana without paying the $70,000 tax. In addition, if a state did require sales tax that was less than Indiana’s, the difference in the rate times the purchase price of the aircraft would be required to be paid at registration.

Who is Eligible
(1) aircraft that are registered in another state as of January 1, 2017, and any sales/use tax due (if any) in the registration state was paid and ownership of the aircraft has not changed after December 31, 2016;
(2) there is no outstanding tax liability in the registration state that directly relates to the aircraft; and
(3) an application for the registration of the aircraft is filed after June 30, 2017, and on or before September 30, 2017, and the Indiana registration fee and the aircraft excise are paid.

We are asking you to help get the word out about this legislation as we believe it will create more activity in the state benefiting airports and FBO’s. If your airport or business knows of anyone who can take advantage of this window, we encourage you to pass on the word. There is a small window from July – September to make application with the state.

If you have any questions or need more detail, please contact Bart at (317) 916-4184 or bgiesler@wswi.com.