Generally, use tax based is based on the purchase price of tangible personal property as provided on the bill of sale. However, because FAA bills of sale commonly contain a purchase price of $1 or $1 + OVC (other valuable consideration), the Department will generally request the purchase contract, insurance documents, photographs, or any additional relevant documentation to establish the taxable base.
If the purchaser is unable or unwilling to provide any relevant documentation to establish aircraft’s taxable base, the Department will use the best information available about the average retail value at the time of importation in accordance with Tenn. Code Ann. § 67-1-113. The average retail value is available for many aircraft in the Aircraft Bluebook. If the aircraft is not in the Aircraft Bluebook, the Department will look at the average retail value for similar aircraft.