Aircraft Purchased by Nonresidents

Although Wisconsin use tax applies to property that is stored, used, or consumed in Wisconsin, an aircraft that is purchased in another state is exempt from Wisconsin use tax if the owner or lessee paid all of the sales and use taxes imposed in the state in which it was purchased and if the owner or lessee is:

  1. A corporation - Exemption applies if that corporation, and all corporations with which that corporation may file a consolidated return for federal income tax purposes, neither is organized under the laws of Wisconsin nor has real property or other tangible personal property (except aircraft and such property as hangars, accessories, attachments, fuel and parts required for operation of aircraft) in Wisconsin at the time the aircraft is registered in Wisconsin.
  2. A partnership - Exemption applies if all of the corporate partners fulfill the requirements in A., above, and none of the general partners and none of the limited partners who have management or control responsibilities are domiciled in Wisconsin and the partnership has no other tangible personal property and no real property (except aircraft and such property as hangars, accessories, attachments, fuel and parts required for operation of aircraft) in Wisconsin at the time the aircraft is registered in Wisconsin.
  3. A limited liability company - Exemption applies if all of the corporate members fulfill the requirements in A., above, and none of the managers and none of the members who have management or control responsibilities are domiciled in Wisconsin and the limited liability company has no other tangible personal property and no real property (except aircraft and such property as hangars, accessories, attachments, fuel and parts required for operation of aircraft) in Wisconsin at the time the aircraft is registered in Wisconsin.
  4. An individual - Exemption applies if the owner or lessee is not domiciled in Wisconsin.
  5. An estate, a trust, a cooperative, or an unincorporated cooperative association - Exemption applies if that estate, that trust and its grantor or that cooperative or association does not have real property or other tangible personal property (except aircraft and such property as hangars, accessories, attachments, fuel and parts required for operation of aircraft) in Wisconsin at the time the aircraft is registered in Wisconsin.

NOTE: For corporations, trusts, partnerships, and limited liability companies, the information above assumes the purchasing entity was not formed to qualify for this exemption.

Page last updated March 28, 2014