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)
