Ezel / Tax Rulings / TX
TX 9205L1167B13 Sales and/or Use Tax (State,Local,MTA) 1992-05-01

Were ultralight flight instruction and aircraft-repair labor taxable under Texas Letter Ruling 9205L1167B13?

Short answer: Actual flight instruction conducted under FAA Part 61 or Part 141 was not taxable, and labor to repair an ultralight aircraft was exempt. A noninstructional pilot flight that went nowhere was taxable as an amusement service. STAR warns that the cited aircraft rule was later repealed.

Apply this to your situation

This page answers the general question as of 1992. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1992
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 Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. STAR expressly warns that Rule 3.359, cited in this 1992 letter, has been repealed and directs readers to Rule 3.280 for aircraft issues. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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) is the authoritative source for any reliance.

Plain-English summary

The Comptroller divided the taxpayer's aviation services into three categories.

First, a student's charge for actual flight instruction was not taxable when the course was conducted under FAA regulations in 14 C.F.R. Part 61 or Part 141. Second, a flight with a pilot that was not instructional and did not transport the passenger to another location was a taxable amusement service. Third, labor to repair an ultralight aircraft was exempt from sales tax under the aircraft rule cited in the letter.

STAR now places an alert above the ruling: Rule 3.359, which the 1992 letter relied on for aircraft repair labor, has been repealed, and readers should consult Rule 3.280 for aircraft issues.

What this means for you

The letter distinguished genuine FAA-regulated instruction from a recreational flight experience. It also treated repair labor as exempt under the rule then in force, but STAR's repeal alert makes a current-law check essential before using that historical conclusion.

Common questions

Was actual flight instruction taxable? No, when conducted under FAA Part 61 or Part 141.

Was every flight with a pilot treated as instruction? No. A noninstructional flight that did not transport the passenger elsewhere was taxable as an amusement service.

Was ultralight-aircraft repair labor taxable? The letter said no under former Rule 3.359.

Is the cited aircraft rule still current? No. STAR says Rule 3.359 was repealed and points to Rule 3.280.

Citations and references

  • 14 C.F.R. Parts 61 and 141
  • Former 34 Tex. Admin. Code Rule 3.359
  • 34 Tex. Admin. Code Rule 3.280, identified in STAR's alert

Source

Original ruling text

ALERT: The cited rule, Rule 3.359 has been repealed. See Rule 3.280 for issues relating to Aircraft.

May 1, 1992

Dear **:

Your letter concerning the taxability of ultraflight flight

instructions and labor for repair work on ultraflights

has been assigned to me for review and response.

A charge to a student for actual flight instruction is not

taxable. Actual flight instruction means the course is conducted

under FAA Regulation, 14 CFR Part 61 or Part 141. Non-

instructional flights with a pilot that do not transport the

person or persons to another location are taxable amusement

services.

Labor to repair an ultraflight aircraft is also exempt from sales

tax. See section (b)(1) and (c)(1) of the enclosed Rule 3.359,

Motor Vehicles and Private Aircraft.

This opinion is based on the facts that you presented. If there

are additional or different facts, this opinion may change.

If you have any questions or need more information, you may

call 512/463-4600, or 1-800-252-5555 from outside Austin. You

may write to Tax Administration Division.

Sincerely,

Gilbert Zamora

Tax Administration Division

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