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Colorado Updates Sales and Use Tax on Aircraft


If you happen to own commercial or private aircraft purchased in the Rocky Mountain High state, you may be interested to know that Colorado recently updated its guidelines for sales and use tax on aircraft and aircraft parts.

According to Colorado Department of Revenue, aircraft “used in interstate commerce by a commercial airline and parts permanently affixed to aircraft are exempt from sales and use tax.” Interested parties are advised to contact home-rule cities for their specific regulations.

Commercial Aircraft

Commercial Aircraft used or purchased for use in interstate commerce by a commercial airline are exempt from sales and use tax. Commercial airline  is defined as “an airline carrying freight or passengers on regularly scheduled flights for a fee.”

Private Aircraft

Nonresidents of Colorado who purchase new or used aircraft in Colorado are also exempt from sales tax provided the following three conditions are met:

1. The aircraft is sold to a nonresident of Colorado;

2. The aircraft will be moved from the state within 120 days of the date of sale;

3. The aircraft will not be in Colorado more than 73 days in any of the three calendar years following the calendar year the aircraft is removed from Colorado.

Aircraft Parts

Aircraft parts are exempt from sales and use tax if they are permanently affixed to the aircraft. Examples include, but are not limited to, paint for the aircraft, seats, fuselage parts, and parts for the aircraft’s engine.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.