Reporting Tax and Recordkeeping

You must report taxes on the sale or purchase of an aircraft (including leases and rentals) on a the Aircraft Sales and Aircraft Use line of your sales and use tax return. You must report your aircraft sales and use taxes on these tax lines so that the money is correctly the deposited into the State Airports Fund.

To report sales or use tax on aircraft:

• Report Minnesota sales tax you collect on the sale or lease of aircraft on the Aircraft Sales line
• Report Minnesota use tax you owe on the purchase or lease of aircraft on the Aircraft Use line
• Report local sales or use taxes on aircraft on the appropriate Local Tax lines.

Note: You may need to add Aircraft Sales (line 712) and Aircraft Use (line 713) to your return. For instructions, see Add Local Tax and Other Taxes to a Sales and Use Tax Account.

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

When reporting aircraft sales or purchases, you may get an error message when you submit your sales and use tax return in our e-Services system. This can happen when you have nothing reported on the General Rate Sales Tax line.

If you get an error message, provide details in the Explanation field, such as “I reported taxable sales or purchases on the Aircraft tax lines.”

When filing your return, you must report all sales tax collected and use tax you owe.

If you are not registered for sales and use tax, you must contact the Minnesota Department of Revenue and register to collect and report taxes. Call Business Registration at 651-282-5225 or 1-800-657-3605 (toll-free).

It is important to keep good records to determine the correct amount of state and local tax you owe.

Your records should include:

• Bills, receipts, invoices, and any other documents that support the entries in your books
• Exemption certificates
• Shipping documents
• Worksheets used to prepare your tax returns
• Aircraft log books
• Lease agreements