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Last Updated: 9/26/2017

General Information for Aircraft Owners

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Sales and Use Tax

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​Do I need to register my aircraft in Minnesota?

You must register in Minnesota if you are

  • a Minnesota resident or business; or
  • a non-Minnesota resident, or a non-resident business, and the aircraft is operated in Minnesota:
    • for 60 days or more during the registration year; or
    • before 1 day of commercial operation in Minnesota.

You must register your aircraft through the Minnesota Department of Transportation (DOT), Office of Aeronautics.

What do I need to register my aircraft in Minnesota?

You need proof that:

  • the correct sales or use tax was paid; or
  • the purchase is exempt from sales tax

If the correct sales tax was not paid, you must pay it at the time of registration.

How do I pay sales or use tax on my aircraft?

Complete Section 3 of the Aircraft Registration form to pay any tax that is due. Minnesota use tax is due when you purchase your aircraft from a private party or an out-of-state dealer, unless the purchase is exempt from sales tax.

Also Complete Section 3 of the Aircraft Registration form to show proof that sales or use tax was paid or to claim an exemption from the tax.

Minnesota aircraft dealers

Dealers that are located or operate in Minnesota should charge Minnesota sales tax and list the tax amount on the invoice. They are required to inform the Minnesota Department of Transportation Office of Aeronautics that sales tax was paid so the aircraft registration can be completed.

Adding Aircraft Tax Lines to your Sales and Use Tax Account

Starting July 1, 2015, you must report taxes on the sale or purchase of an aircraft (including leases and rentals) on a new tax line of your sales and use tax return.

This is not a new tax. But a recent law change requires the Minnesota Department of Revenue to deposit sales and use taxes collected on aircraft registration into the State Airports Fund. (Minnesota Statutes 297A.82, subd. 4a).

How to add the new tax lines

Log in to your Minnesota e-Services account and follow the instructions to add the tax lines “Aircraft Sales” and “Aircraft Use.”

To learn more about adding the Aircraft Sales or Aircraft Purchases tax lines, see Adding Local Tax and Other Taxes to a Sales and Use Tax Account 

Returns filed after July 1, 2015

Starting July 1, 2015, you will report:

  • sales tax collected on the sale or lease of aircraft on the “Aircraft Sales” tax line,

  • use tax accrued on the purchase or lease of aircraft on the “Aircraft Use” tax line, and

  • any local sales or use taxes paid or accrued on the appropriate local tax line.

You will no longer use the “General Rate Sales Tax” or “Use Tax Purchases” tax lines to report sales or use tax on aircraft.

When you submit the return in e-Services, you will get an error message stating that you need to provide an explanation. The error occurs because no information is being reported in the General Rate Taxes line, which is correct. To correct the error, enter an explanation in the explanation field. For example, “I have remitted Minnesota taxable sales or purchases related to aircraft on the Aircraft sales or use tax line.” See this sample screenshot.

Note: If you are an annual filer, report any sales or use tax on aircraft for the entire year (January 1 – December 31, 2015) on the new aircraft tax lines.

If you need a Minnesota tax ID number or sales and use tax account

You may register for a Minnesota tax ID number or sales and use tax account

References

Adding Aircraft Tax Lines to your Sales and Use Tax Account

Aircraft Industry Guide

Questions?