Idaho Admin. Code r. 35.01.02.038 - FLYING CLUBS
Sections 63-3612, 63-3613, 63-3622, Idaho Code
01.
In General. A flying club is
an association of persons who have purchased or leased aircraft for the purpose
of renting the aircraft to club members. The aircraft rentals to the club
members are considered bare equipment rentals and are taxable at a reasonable
rental value. (3-31-22)
02.
Rental or Sale of Aircraft to Members. The flying club is a
retailer who is required to obtain a seller's permit and collect and remit
sales tax. The sales tax, at the prevailing tax rate, is to be collected by the
flying club and remitted to the Commission in the manner prescribed for other
retailers. The tax is applicable whether the aircraft is sold or is rented on
an hourly, daily, weekly, monthly, or any other basis. The flying club,
primarily engaged in the business of making bare equipment rentals to club
members, may purchase or lease the aircraft without paying sales tax by giving
to its vendor a valid resale certificate as required by Rule
128 of these rules.
(3-31-22)
03.
Other Charges
to Members. Charges for membership fees are generally taxable. If the
membership fee is in no way related to the rental of the aircraft, the fee is
not taxable. Charges for flight instruction, if such charges are separately
stated, are not taxable. However, charges for logbooks and flight instruction
manuals are taxable. (3-31-22)
04.
Aircraft Repair Parts. If the flying club is responsible for the
maintenance of the aircraft, the club may purchase the necessary repair and
replacement parts without paying tax by providing a valid resale certificate.
See Rule 128 of these rules.
(3-31-22)
05.
Cross-Reference. Aircraft and Flying Services see Rule
037 of these rules.
(3-31-22)
Notes
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