Air Transportation

Nontaxable charges

The amount an air transportation company charges to fly people or property isn’t taxable. Nontaxable services include:

  • Transporting freight from one point to another
  • Transporting passengers from one point to another
  • Aerial contracting services (e.g., applying farm chemicals or aerial logging)
  • Air ambulance services

Taxable purchases

Air transportation companies pay tax on items they buy to operate the business. This includes:

  • Sales and leases of aircraft and parts unless an exemption applies. See “Exemptions for air transportation companies” below.
  • Hangar equipment and supplies.
  • Safety equipment and supplies.
  • Food to give away to passengers. See Complimentary items for more information.
  • Logo merchandise and promotional items given away.
  • Office furniture and supplies.
  • Tools and equipment used in aircraft repair, remodeling and maintenance.

Exemptions for air transportation companies

Aircraft and parts are exempt for some transportation companies and aircraft maintenance companies including:

  • Aircraft that transport passengers or freight for hire for more than half their flight hours. The aircraft must:
    • Be operated under authority of Idaho, the United States or a foreign government
    • Be used to provide services to the public without discrimination
    • Transport people or property from one location to another on the ground or water
  • Aircraft used for air ambulance services
  • Fixed-wing aircraft that spend more than half their flight hours as an air tactical group supervisor platform under contract with a governmental entity for wildfire activity
  • Repair or replacement materials and parts installed, affixed or applied to these aircraft in connection with remodeling, repairing or maintaining them
  • Certain materials, parts and components installed on nonresident, privately owned aircraft at an FAA-approved repair station in Idaho