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Yes. Aircraft registration is required within 31 days after the purchase date with the Indiana Department of Revenue. Late penalty and interest will be assessed on all late registrations.
Aircraft Registration forms can be obtained from these sources:
By Mail:Indiana Department of Revenue
P. O. Box 644
Mail Stop # 105
Indianapolis, IN 46206-0644
Telephone: (317) 232-1497
No. The FAA and the Indiana Department of Revenue are separate government agencies. They do not automatically exchange information. It is the aircraft owner’s responsibility to register the aircraft with the federal government—through the FAA—and with the State of Indiana—through the Indiana Department of Revenue.
If a non-resident bases an aircraft in Indiana for 60 days or more, the non-resident is required to register with the Indiana Department of Revenue and pay all applicable fees and taxes. The 60 days do not have to be consecutive days.
A detailed bill of sale, invoice, or sworn affidavit (Form 7669) signed by the seller must be submitted with your Application for Registration or Exemption, Form 7695. The FAA Bill of Sale, Form 8050-2, is not acceptable if there was an aircraft trade-in involved or if the bill of sale states “$1.00 and other valuable considerations” or “$1.00 & OVC”.
The following is a summary of the exemptions available. A complete detailed description of all exemptions is listed in Indiana Code 6-6-6.5-9.
- Aircraft owned and used exclusively by government.
- An aircraft owned by a non-resident and registered in another state, provided the non-resident does not establish a base in Indiana or use the base for 60 days or more. The 60 days do not have to be consecutive days.
- An aircraft prohibited from taxation by the laws of the United States.
- An aircraft owned or operated by a non-resident who is either an air carrier certificated under Federal Air Regulation Part 121 or a scheduled air taxi operator certified under the Federal Air Regulation Part 135.
- An aircraft which has been scrapped, dismantled, or destroyed and the FAA certificate of registration has been surrendered. (The FAA N# has been canceled.)
- An aircraft owned by an Indiana resident that is not an aircraft dealer and is not based in Indiana at any time. However, the owner is required to file Form AE-1 no later than 31 days after the date of purchase and is required to furnish the required documentation verifying where the aircraft is registered and based.
- An aircraft owned by a dealer for not more than 5 days that is part of an ultimate sale or transfer of an aircraft that will not be based in Indiana.
- An aircraft owned by a registered non-profit museum, if the museum provides documentation with its registration no later than 31 days after the purchase date. The Department will issue the registration for no charge.
- An aircraft owned by and used exclusively in the service of Indiana, a political subdivision of Indiana, or any university or college supported in part by state funds. The aircraft must be reported for registration, but the Department will issue the registration at no charge.
The following is a summary of the sales/use tax exemptions available.
- An aircraft purchased for resale by a registered Indiana Aircraft Dealer.
- An aircraft purchased by a registered Indiana Retail merchant for rental and lease to others. (The sales/use tax exemption for rental and lease to others is not sharing the cost of the aircraft with other entities, written in the form of a lease or rental agreement. An aircraft owner must demonstrate normal business practices and must prove motive to make a profit.)
- An aircraft purchased for public transportation. The aircraft must be operated exclusively under FAA Part 135, 125 or 121. A copy of the federal certificate issued for public transportation must be submitted with your application for aircraft registration. (Operation of an aircraft under FAA PART 91 is not public transportation.)
- An aircraft purchased by a registered non-profit organization for exempt use as described in IC 6-2.5-5-25.
- An aircraft purchased by a governmental entity for use for governmental purposes
- An aircraft purchased by a non-resident and taken out of state within 30 days after taking delivery either from an outright purchase, or repair, refurbishment or remanufacture is exempt from Indiana sales/use tax. The purchaser is required to supply the seller with a copy of the purchaser’s registration or title for the state where the aircraft is registered or titled within 60 days.
Aircraft registration and excise tax are in lieu of personal property tax. So if you own the aircraft, the registration and tax are due regardless of the condition of the aircraft. If you release or surrender the FAA Certificate of Registration (FAA N#) and the airworthiness certificate, it is no longer considered an aircraft by the FAA or the State of Indiana; registration and payment of the excise tax would not be required.
Aircraft registration and excise tax are due each year, the 1st day of January and are delinquent if not paid before the last day of February. Aircraft Renewal forms are mailed the last week of December to all previously registered owners. If you have not received an aircraft renewal by the second week of January, please contact the Indiana Department of Revenue at (317) 232-1497 or by e-mail.
The aircraft seller and the aircraft purchaser are required to report a sale or purchase of their aircraft to the Indiana Department of Revenue within 31 days of the transaction. Failure to register within 31 days will result in late penalty being charged to the purchaser and may result in tax liability not being transferred from the seller. (The FAA must be notified by both parties as well.)
If you sell your aircraft after payment of registration and excise tax, you are entitled to a tax credit but not a cash refund. The tax credit is the lesser of 90% of the excise tax paid or 10% times the number of months after the sale of the aircraft times the excise tax paid. The excise tax credit may be applied towards the excise tax due on another aircraft purchased in the same calendar year. The registration fee paid is not used in the computation.
Contact the Department of Revenue at (317) 232-1497 or by e-mail with the correct information. The Department will issue a revised “proposed assessment,” which must be returned with your purchase documentation signed by the seller to support the correction.
Yes. Effective July 1, 2007, an aircraft brought to Indiana to be repaired, re-modeled refurbished, remanufactured or subject to a pre-purchase evaluation is exempt from Indiana use and/or aircraft excise tax. A “repair station” is a person who holds a repair station certificate issued by the FAA. However, the aircraft must be properly titled or registered in another state. The purchase of parts used to repair the aircraft is subject to Indiana sales tax.