The service of providing parking or providing parking space for aircraft is subject to Wisconsin sales or use tax. "Parking" includes occupying space in a hangar when an aircraft is available for use without requiring a substantial expenditure of time or effort to make it operational.
For example, a ready-to-fly aircraft occupying space in a hangar when the aircraft is available for immediate use is "parked." However, an aircraft occupying space in a hangar with its wings off is not parked, since it would require a substantial expenditure of time or effort to make it operational.
Providing Space at Airports
An airport may provide space for an aircraft or an airline at the airport. These charges may or may not be taxable parking services.
"T" Hangar and "Tie-Down" Parking - Indoor parking, such as a single or multiple "T" hangar parking is taxable. Outdoor or "tie-down" parking is also a taxable parking service.
Apron Charge - The fee charged by an airport for use of the apron is not taxable when the fee includes use of gates and terminals and the airlines use the apron space typically to load and unload passengers and cargo, lavatory servicing, maintenance, cleaning, fueling, catering, replenishing potable water supply, deicing, and towing.
Storage After Repair - The charge for storing an aircraft that is not available for immediate use is not taxable. However, the charge for storing an aircraft after it has been repaired and is available for immediate use is taxable.
Example 1: Company repairs aircraft. Owner is unable to pick up the aircraft for a week. Company charges Owner $200 for "storing" Owner's aircraft until it can be picked up. Because the aircraft is available for immediate use upon repair of the aircraft, the $200 charge by Company is considered a charge for parking and is subject to Wisconsin sales tax.
Example 2: Company brings Owner's aircraft to its repair shop. The aircraft is damaged and cannot be used. Company charges Owner $300 for "storing" the aircraft until Owner's insurance company can estimate the cost of the damage and approve repairs. Because the aircraft is not available for immediate use, the $300 charge by Company is not considered a charge for parking and is not subject to Wisconsin sales tax.
Page last updated April 28, 2014