As of July 1, the state of Indiana can no longer impose a use tax on the value of aircraft temporarily located in the state for refurbishment, maintenance and overhauls.
Working on behalf of interiors specialist Indianapolis Jet Center, the Boca Raton, Fla. law firm of Goldstein Lapayowker lobbied the state for “a fly-away” exemption provision to the old tax law. The change, which was approved earlier this year, took effect on July 1.
The new law allows out-of-state business jet owners to close on the purchase of aircraft in Indiana and remain there to complete inspection and overhaul work without incurring sales or use taxes, as long as the airplane leaves the state within 30 days of completion of the work. It also allows the owner to bring aircraft to Indiana and remain there without paying use tax as long as the aircraft is undergoing work at an approved repair station.