Ezel / Tax Rulings / KS
KS Notice 04-06 Kansas Compensating Tax; Kansas Retailers' Sales Tax 2004-09-08

Are aircraft repair parts and services exempt from Kansas sales and use tax, and when do aircraft sales stay taxable?

Short answer: Beginning January 1, 2005, the sale of aircraft repair, modification, and replacement parts, and the services used in the remanufacture, modification, and repair of all aircraft, are exempt from Kansas state and local sales and compensating use tax under 2004 Senate Bill 147. But sales of aircraft themselves stay subject to Kansas sales tax unless the aircraft is used as a certified/licensed common carrier in interstate or foreign commerce, sold to a foreign government, or sold for use outside the United States -- with a limited fly-away exception where the aircraft is sold and delivered in Kansas to a resident of another state, is not registered or based in Kansas, and does not remain in Kansas more than 10 days. This is the amended version of the notice.

Apply this to your situation

This page answers the general question as of 2004. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2004
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Notice providing general public guidance, not a private ruling issued to one taxpayer. It is the amended version describing the aircraft exemption effective in 2005; later law may change the result, so verify the current statute before relying on it. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

This amended notice covers the Kansas sales/use tax treatment of aircraft parts, services, and sales:

  • Parts and services (exempt from January 1, 2005): the sale of aircraft repair, modification, and replacement parts, and the services employed in the remanufacture, modification, and repair of all aircraft, are exempt from Kansas state and local sales and compensating use tax under 2004 Senate Bill 147.
  • Aircraft sales (generally still taxable): the sale of an aircraft remains subject to Kansas state and local sales tax unless the aircraft is used as a certified or licensed common carrier in interstate or foreign commerce, is sold to a foreign government, or is sold for use outside the United States.
  • Fly-away exception: an otherwise-taxable aircraft sale is not taxed if the aircraft is sold and delivered in Kansas to a resident of another state, is not to be registered or based in Kansas, and does not remain in Kansas more than 10 days.

(Companion Notice 04-07 lists the aircraft parts/services exemption among the new January 1, 2005 exemptions.)

What this means for you

If you repair, remanufacture, or modify aircraft, parts and labor became exempt from Kansas sales/use tax on January 1, 2005. Selling a whole aircraft is different: expect Kansas sales tax unless the buyer is a qualifying common carrier, a foreign government, or a foreign user, or the narrow fly-away rule (out-of-state resident, not based in Kansas, gone within 10 days) applies.

Common questions

Q: Are aircraft repair parts taxable in Kansas?
A: No, from January 1, 2005. Aircraft repair, modification, and replacement parts, and related remanufacture/repair services, are exempt under 2004 SB 147.

Q: Is the sale of the aircraft itself exempt?
A: Not generally. An aircraft sale stays subject to Kansas sales tax unless the aircraft is a certified/licensed common carrier in interstate or foreign commerce, is sold to a foreign government, or is sold for use outside the U.S.

Q: What is the fly-away exception?
A: An otherwise-taxable aircraft sale is not taxed if it is sold and delivered in Kansas to a resident of another state, is not registered or based in Kansas, and does not remain in Kansas more than 10 days.

Q: Do the parts and services rules cover all aircraft?
A: Yes. The exemption applies to services in the remanufacture, modification, and repair of all aircraft.

Citations and references

  • 2004 Senate Bill 147 -- exemption for aircraft repair/modification/replacement parts and related services, effective January 1, 2005.
  • See also Notice 04-07 (item 2), which lists this aircraft exemption under K.S.A. 79-3606(g).

Subject

Sale of Aircraft Repair Parts and Services (Amended)

Source

Original ruling text

Notice

Notice Number: 04-06

Tax Type: Kansas Compensating Tax; Kansas Retailers' Sales Tax
Brief Description: Sales of Aircraft Repair Parts and Services.

Keywords:

Approval Date: 09/08/2004

Body:

                                Office of Policy & Research


                                 AMENDED NOTICE 04-06

                 SALE OF AIRCRAFT REPAIR PARTS AND SERVICES

Beginning January 1, 2005, the sale of aircraft repair, modification and replacement
parts and sales of services employed in the remanufacture, modification and repair
of all aircraft, will be exempt from Kansas state and local sales and compensating
use tax pursuant to 2004 Senate Bill 147.

However, sales of aircraft not being used as certified or licensed common carriers in
interstate or foreign commerce, not sold to a foreign government, or not sold for use
outside the United States will remain subject to Kansas state and local sales tax,
unless the aircraft is sold and delivered in this state to a resident of another state,
the aircraft is not to be registered or based in this state, and the aircraft does not
remain in this state more than 10 days.

Taxpayer Assistance. If you have questions about this notice, please contact the

department at (785) 368-8222. Copies of this notice are available on our web site,
www.ksrevenue.org, or may be ordered by voice mail at (785) 296-4937.

Date Composed: 09/09/2004 Date Modified: 11/02/2004

Get today's answer for your situation

You just read a 2004 ruling on this question. Ezel checks current Kansas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.