Importing an aircraft and/or aircraft parts into Tennessee is a taxable event in Tennessee. The tax base is the fair market value of the aircraft that is determined using the best information available to the Department in accordance with Tennessee law (see Aircraft-5 – How to Determine Tax Base of Imported Aircraft for more information).
Sales tax paid to another state does not eliminate the tax liability in Tennessee. However, Tennessee law allows a credit against the Tennessee liability. A credit does not eliminate tax liability in Tennessee. If the sales and use tax liability is higher in Tennessee, there could still be a liability due after applying the credit.
Please provide the Affidavit of Transfer of Aircraft that can be found here. Please complete applicable schedules on the form. If you have questions about the affidavit, please contact the Audit Division’s Discovery Unit at (615) 532-6409.
Please include the following with the affidavit:
- Proof of sales tax previously paid directly to the seller or paid to another state.
- Insurance policy to show the current value.
- Original purchase agreement or invoice.
- Most recent tax base in another state.
- Photos to show the condition of the aircraft.
Reference: Tenn. Code Ann. §§ 67-1-113, 67-6-203, 67-6-313(f).