Does a company that sells blank printed flight-plan forms to pilots have to collect sales tax on them?

Plain-English summary

Misholu, Inc., designs flight plans, has them printed, and sells them to pilots and other users in aviation. The flight plans are blank forms the customer fills in to record a course of flight. The company asked whether it must collect sales tax on these sales.

The Department held the sales are taxable — the company must collect tax.

• The forms are tangible personal property. Section § 1105(a) imposes tax on receipts from every retail sale of tangible personal property. Printed flight-plan forms are tangible personal property.
• No exemption or resale applies. The pilots are not buying the forms for resale, and the forms are not used for any exempt purpose. So the sales are taxable retail sales.
• State and local tax. The same conclusion applies to any applicable local sales tax.

What this means for you

Selling printed forms to end users is a taxable sale of goods. Blank forms, logs, and similar printed products are tangible personal property. Unless the buyer is purchasing for resale or the item qualifies for a specific exemption, the seller collects sales tax.

"It's used for record-keeping" doesn't create an exemption. What the customer does with a form after buying it doesn't change that the sale of the form itself is taxable.

Charge local tax too. The obligation covers both State and local sales tax on these retail sales.

Common questions

Q: I print and sell blank forms to professionals. Do I collect sales tax?
A: Yes. Blank printed forms are tangible personal property; unless sold for resale or specifically exempt, the retail sale is taxable under § 1105(a).

Q: Does it matter that pilots use the forms for official flight records?
A: No. The use the buyer makes of the form doesn't exempt the sale. The sale of the tangible form is taxable.

Citations and references

Statutes:

• Tax Law § 1105(a) — imposes sales tax on receipts from every retail sale of tangible personal property

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1982.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a82_42s.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-A-82(42)S
Sales Tax
November 24, 1982

Taxpayer Services Division
Technical Services Bureau
STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. S811016A

On October 16, 1981, a Petition for Advisory Opinion was received from Misholu, Inc., 16
Sundial Lane, Bellport, New York 11713.
The issue raised is whether Petitioner is required to collect sales tax on its sales of flight
plans to pilots and other users in the aviation field.
Petitioner designs flight plans, has the plans manufactured, and then sells them to pilots and
other users in the aviation field. The flight plans are blank forms, to be filled in by the customer. The
customer would use such a flight plan to prepare a written record of his course of flight.
Section 1105(a) of the Tax Law imposes the State sales tax on "The receipts from every retail
sale of tangible personal property, except as otherwise provided in this article . . . . "
The flight plans sold by Petitioner are tangible personal property. They are not purchased for
resale by Petitioner's customers, nor are they used for any exempt purposes. The flight plans are
therefore subject to sales tax under section 1105(a) of the Tax Law. Petitioner, accordingly, must
collect sales tax on its sales of flight plans. The same conclusion would apply to any applicable
locally imposed sales tax.

DATED: April 2, 1982

s/LOUIS ETLINGER
Deputy Director
Technical Services Bureau

ROBERT W. BOUCHARD, ACTING COMMISSIONER
GABRIEL B. DiCERBO , DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR
TP-8 (8/82)