200902318L



February 20, 2009

Subject: 09029946-Sales Taxes for Aircraft

Dear **************: 

This is in response to your e-mail request to confirm that the scenario set out 
below will not trigger any sales taxes. 

SCENARIO: 

The sale and delivery of an aircraft will take place in Texas. Then, for the 
next few weeks (approximately 4 weeks) the buyer’s pilots will train in 
**************, while at the same time, the aircraft will go through some 
inspections required for the FAA to issue an Export Certificate of 
Airworthiness (ECofA). Within a few days, the buyer should receive the FAA 
ECofA, and then the buyer will export the aircraft to Mexico where it will be 
registered and based.

Response: Section 151.328(a)(4) of the Texas Tax Code exempts the sale of an 
aircraft in Texas to a person for use and registration in another state or 
nation before any use in Texas. Flight training in the aircraft in Texas and 
flying the aircraft out of Texas does not constitute a use of the aircraft in 
Texas. In addition, any time spent in Texas for FAA inspections required for an 
Export Certificate of Airworthiness, including any necessary repairs or 
maintenance performed on the aircraft and any necessary test or maintenance 
flights taken while the aircraft is in Texas will not cause the loss of the 
above exemption, provided the aircraft is flown out of Texas immediately after 
the Export Certificate of Airworthiness is issued.

In order to claim the exemption, the purchaser must give the seller a properly 
completed Texas Aircraft Exemption Certification Out-of-State Registration and 
Use (Form 01-907) signed by both the seller and the purchaser at the time of 
the sale. The seller must retain the completed certificate in its records to 
show why no sales tax was collected on the sale of the aircraft and provide a 
copy to the purchaser and to the Texas Comptroller of Public Accounts, Business 
Activity Research Team, P. O. Box 13003, Austin, Texas, 78711-3003.

A copy of Form 01-907 is available online at: 
www.window.state.tx.us/taxinfo/taxforms/01-forms.html

This opinion is based on the facts you provided. Other facts, though similar, 
may yield different results. I hope this information helps. If you have further 
questions, please e-mail them to tax.help@cpa.state.tx.us, or you may reach me 
by phone at (800) 531-5441, ext. 3-4986. 

Join an e-mail group online at: http://www.window.state.tx.us/subscribe

Our goal is to provide you with prompt, professional service. Please take a 
moment to complete our on-line survey at 
http://aixtcp.cpa.state.tx.us/surveys/tpsurv2/index.html

Sincerely,


Ken Koch
Tax Policy Division
Comptroller of Public Accounts




ACCESSSION NUMBER: 200902318L
SUPERSEDED: N
DOCUMENT TYPE: L
DATE: 02/20/2009
TAX TYPE: SALES