Registration and Licenses
Key Points On Excise Tax Due On Aircraft
»Remittance of Excise Tax (SFN11627)
Any excise tax due on an aircraft is to be paid to the North Dakota Aeronautics Commission, PO Box 5020, Bismarck, North Dakota 58502-5020.
When the sale of an aircraft is handled between two private individuals, the buyer is responsible for the excise tax. When the sale takes place between an aircraft dealer and an individual, the dealer notifies the N.D. Aeronautics Commission of the sale and commission collects the tax from the individual at the time of registration. There is a 30 day grace period for registration from time of transaction.
Excise tax is levied on every purchase transaction, with trade-in allowance of another aircraft or licensed motor vehicle allowed, at the rate of 5% on conventional aircraft & ultralight vehicles, and 3% on agricultural aircraft purchased after December 6, 1989. Non-residents who bring to the state aircraft for commercial use which have not been previously registered in North Dakota may be subject to the excise tax on the value of the aircraft. North Dakota has reciprocity with all States on sales or excise taxes except Alaska, Delaware, Montana, New Hampshire, Oregon and West Virginia.
A purchaser of airplanes who is licensed as a Dealer of airplanes, who uses such property solely for demonstration or display and for which no charge is made while holding it for sale in the regular course of business, is not subject to the excise tax. (See Dealer law).
Exemptions for sales tax are as follows;
- Aircraft acquired by disabled veterans as defined by the provisions of Public Law No. 79-663 [38 V.S.C. 1901]
- Aircraft owned by federal or state government or agencies or institutions thereof.
- Transfer by gift, inheritance or between husband and wife present and child or brothers and sisters; transfer of aircraft to reflect a new name by a business. Reorganization if ownership remains in the same person or person as prior to reorganization.
- Aircraft transferred between a lessee and lessor for one year or more and tax paid in full or credit for use tax paid.
- Aircraft acquired by any parochial or private nonprofit school.
All inquiries concerning the use tax or excise tax may be submitted to the ND Aeronautics Commission, PO Box 5020, Bismarck, North Dakota 58502-5020.