The COVID-19 pandemic has caused many airlines to temporarily ground aircraft. Due to its dry desert conditions, Arizona is a popular state for airlines and commercial aircraft lessors to park aircraft while not in active use. Airlines and commercial aircraft lessors should be aware, however, that Arizona’s annual aircraft license tax may apply to an aircraft owned by a nonresident of Arizona if the aircraft is based in the state for more than 90 days in a calendar year.[1] The annual license tax is administered and enforced by the Arizona Department of Transportation (“ADOT”).
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State tax developments in the aviation industry – Early 2019 update
We have published our semi-annual update on developments in state and local tax affecting the aviation industry. In this update, we will focus on some noteworthy sales and use tax law changes, cases, rulings, and guidance from the second half of 2018.
Click here for a copy of the client alert.