On Fri, 04 Jul 2003 19:59:25 GMT, "Richard Kaplan"
wrote:



"Paul Millner" wrote in message
...

What state offers that option, Richard?

Pennsylvania for sure and I believe lots of other states as well -- see the
"exemptions" on the back side of this form for an example:

http://www.revenue.state.pa.us/reven...ue/rev-832.pdf


Basically if you purchase an airplane for the purpose of renting it to
pilots then you are exempt from sales/use tax and instead all the renters
(including yourself) pay perpertual use tax on the fair rental value of the
airplane.

That is also the case in Maryland. Leaseback aircraft are exempt from
sales/use tax (on the purchase price) and also exempt from Personal
Property Tax.