The state of Rhode Island has issued a revised aircraft-use-tax regulation, after an emergency regulation issued in April raised concerns among aviation advocates when it apparently tried to impose a 7-percent “use tax” on transient aircraft, which the state Tax Division said was not its intent. After some discussion with aviation groups about the rule’s lack of clarity, the state agreed to revise it. The new regulation, which takes effect Dec. 11, tries to make it clear that nonresidents of Rhode Island are not affected by the rule. However, residents of the state who buy aircraft outside the state and hangar them at out-of-state airports will be subject to the tax if they fly into Rhode Island and stay overnight.
Rhode Island Revises Aviation Tax
Key Takeaways:
- Rhode Island has issued a revised aircraft-use-tax regulation, replacing an emergency rule that caused confusion among aviation advocates.
- The previous emergency regulation had raised concerns it might apply a 7-percent use tax to transient aircraft, which the state clarified was not its intent.
- The new regulation, effective December 11, clarifies that nonresidents of Rhode Island are not affected by the tax.
- However, Rhode Island residents who purchase aircraft out-of-state and hangar them elsewhere will be subject to the tax if they fly into Rhode Island and stay overnight.
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