North Carolina: Aviation Gasoline and Jet Fuel Exemption

Nov 2, 2015 | Gail Cole

Commercial airlines win exemption from North Carolina sales tax on jet fuel.

Jet fuel and aviation gasoline is currently subject to North Carolina sales and use tax at the rate of 7%. As requested by certain commercial airlines, it will soon be exempt from North Carolina sales tax when sold to “an interstate air business for use in commercial aircraft.” The exemption takes effect January 1, 2016.

North Carolina law defines commercial aircraft (N.C. Gen. Stat. § 105-164.13(45a)) as “aircraft that has a certified maximum tax-off weight of more than 12,500 pounds and is regularly used to carry for compensation passengers, commercial freight, or individually addressed letters and packages.”

The North Carolina Department of Revenue will publish additional information about the new exemption prior to the end of the year.

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photo credit: American Airlines Boeing 737-823; N954AN@LAX;21.04.2007/466nz via photopin (license)

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.

Avalara Author

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.