If the aircraft is purchased exclusively for lease to a flight school, the purchasing entity may obtain the aircraft free from sales tax. However, to qualify for the exemption of resale the purchaser must be registered with the Department of Revenue with an active sales and use account. Please be advised that even if an owner of property is registered with an active sales and use account, the owner may not claim an exemption for resale if the tangible personal property is for personal use. Please contact the Department and provide your sales and use tax account number, copy of the insurance policy during ownership, copies of all lease agreements, copies of flight logs during ownership, and any other information that would support an exemption.
Reference: Tenn. Code Ann. § 67-6-329(a)(17).