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Wed, Dec 03, 2003

Rhode Island Issues Revised Aircraft Use Tax Regs

The Rhode Island Division of Taxation has issued a revised Regulation regarding the application of the use tax to noncommercial aircraft in Rhode Island. Due in large part to the efforts of NBAA and interested Rhode Island aviation groups, the new Regulation clarifies many of the uncertainties created by the issuance of the previous Emergency Regulation.

The new Regulation makes it clear that the Rhode Island use tax applies only to noncommercial aircraft exceeding specified operating limits within the State of Rhode Island. The revised Regulation also makes it clear that it applies only to "residents" of Rhode Island.

Thus, nonresidents of Rhode Island should feel free to operate their aircraft within the State. However, companies or individuals with "significant contacts" with or "significant operations" in Rhode Island should continue to exercise caution in their operations and are advised to consult with their tax advisers to determine if they could be considered residents. The new Regulation is effective December 11, 2004.

FMI: http://web.nbaa.org/member/ops/taxes/state/ri

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