In Matter of John P. Reilly D/B/A Construction Concepts, DTA No. 823544 (N.Y.S. Div. of Tax App., May 24, 2012), an Administrative Law Judge held that a sole proprietor’s purchases of an airplane and a helicopter were subject to sales and use taxes because neither qualified as commercial aircraft primarily engaged in intrastate, interstate, or foreign commerce under Tax Law §§ 1115(a)(21) and 1101(b)(17). The sole proprietor alleged that he met the statutory definition for property used “by the purchaser of the aircraft primarily to transport such person’s tangible personal property in the conduct of such person’s business,” but admitted that he also used the aircraft for non-work-related trips. The ALJ concluded the sole proprietor did not sustain his burden of proof to establish that either the helicopter or the airplane was used primarily in his work so as to qualify as commercial aircraft.
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Airplane and helicopter did not qualify for sales tax exemption for commercial aircraft
- Morrison & Foerster LLP
- Hollis L. Hyans
- USA
- July 2 2012
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John Corcoran
Director, Legal Services
Cisco Systems, Inc