Avalara Taxrates > Blog > Sales Tax News > New Sales Tax Exemption for Aircraft in New York - Avalara

New Sales Tax Exemption for Aircraft in New York

  • Sep 11, 2015 | Gail Cole

 Would this be exempt under New York's new aviation aircraft exemption?

General aviation aircraft and machinery and equipment installed on general aviation aircraft is exempt from New York state and local sales tax, effective September 1, 2015.


General aviation aircraft is “aircraft that is used in civil aviation.” The sales tax exemption applies to receipts for the following:

  • Eligible aircraft
  • Property affixed to the aircraft (built in appliances, entertainment systems, furniture, climate control systems, window coverings, etc.)
  • Property contained in or on the aircraft at the time of sale “that is necessary for its normal operation” (avionics, emergency lighting, radios, navigation, weather radar systems)

Also exempt is machinery or equipment installed on a general aviation aircraft subsequent to its purchase, provided it is necessary for the aircraft’s normal operation or equipping.

Form ST-121, Exempt Use Certificate must be used to claim the exemption.

Not exempt

General aviation aircraft is not the following:

  • Commercial aircraft
  • Military aircraft
  • Unmanned aerial vehicle or drone

Accessories added to the purchase price of the aircraft are not exempt. These include, but are not limited to, the following:

  • Decorative items (art, paintings)
  • Linens, pillows, towels
  • Small appliances
  • Tableware, glassware, cookware

Is the aircraft I’ve ordered exempt?

The exemption took effect September 1, 2015, and applies to sales made on and after that date.

However, qualifying items ordered (under contract) prior to September 1 are exempt “provided that the purchaser takes delivery of the aircraft or the machinery or equipment on or after September 1, 2015.” Please see New York Department of Taxation and Finance TSB-M-15(3) for additional information and examples.

Remember, the exemption is not valid without a valid Exempt Use Certificate. Learn how to manage exemption certificates in the cloud.


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.