Tax Type
Aircraft Sales and Use Tax
Retail Sales and Use Tax
Description
Aircraft at Washington National Airport
Topic
Property Subject to Tax
Date Issued
08-05-1992
August 5, 1992
Re: Request for Ruling: Sales and Use Tax
Dear**************
This will reply to your letter of January 30, 1991 in which you request a ruling as to whether Virginia has the jurisdiction to impose the sales and use tax on aircraft based at Washington National Airport ("National").
Virginia's authority to levy the retail sales and use taxes at National is well established under the Airport and Airways Development Act ("AADA"), see Commonwealth v. United Airlines, 219 Va. 374, 248 S.E.2d 124 (1978), copy enclosed.
Under Va. Code §58.1-1502 (copy enclosed), the Virginia Aircraft Sales and Use Tax is imposed on, "the retail sale of every aircraft sold in the Commonwealth and upon the use in the Commonwealth of any aircraft required to be licensed by the [Virginia] Department of Aviation" (Emphasis added). The exemptions from the tax are set out in Va. Code §58.1-1505 and include aircraft purchased by certain airlines that provide scheduled common carrier service on a continuing basis to one or more Virginia airports.
Sale of Aircraft
As Virginia has authority to levy and collect sales and use taxes at National under the AADA, it clearly possesses the authority to levy the 2% aircraft tax on aircraft sold at National under Va. Code §58.1-1502.
Aircraft Required to be Licensed
As National is under the jurisdiction of the Federal government, the Virginia Department of Aviation has not traditionally required the licensure of planes based there. However, based on the recent opinion of the Office of the Attorney General dated April 30, 1992 (copy enclosed), the Department of Aviation clearly has the authority as provided under the Metropolitan Washington Airport Act to license aircraft in accordance with Va. Code §5.1-5.
I hope this has answered any questions you may have. If you should have any further questions, please feel free to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner