WeVote
Log In

Bill

Bill

SB 447

Exempt sales of aircraft to nonresidents from sales tax

136th Legislature (2025-2026) Introduced by Andrew Brenner

Ohio would exempt sales tax on aircraft sold to nonresidents if delivered in Ohio, not registered or based there, and moved out within 30 days.

Referred to committee
#airandrailtransport #taxation #transportation
0
WeVote Research Nonpartisan
Bill Summary · SB 447

Overview

SB 447, introduced in the 136th Ohio General Assembly, would amend Ohio’s sales and use tax statute to exempt the sale of aircraft to nonresidents from sales tax. The bill sets the specific conditions under which aircraft sales to nonresidents would be exempt and integrates this exemption into the broader framework of the state’s sales tax provisions.

Main purpose and intent

  • Provide an exemption from Ohio sales tax for sales of aircraft to nonresidents, under defined conditions.
  • Align aircraft sale tax treatment with the state’s broader exemptions framework while aiming to facilitate transactions with nonresidents who take delivery of the aircraft outside of Ohio.

Key provisions and changes

  • Section 5739.02 (as amended) establishes an excise tax on all retail sales in Ohio, with a general rate of 5.75%, and outlines the mechanics of collection (section 5739.025) and various rules for leases, sales measured by installments, etc.
  • The bill adds a specific exemption in subsection (B)(67):
    • Exemption for the sale of aircraft when all of the following are met:
    • The aircraft is sold and delivered in Ohio to a nonresident of Ohio.
    • The aircraft is not to be registered or based in Ohio after the sale.
    • The aircraft is removed from Ohio not more than 30 days after the later of:
      • The conveyance filing date with the FAA registry (49 U.S.C. 44107).
      • The date the aircraft receives return-to-service approval after maintenance/refurbishment (as per 14 C.F.R. 43.9).
  • The broader text of Section 5739.02 remains intact, continuing to define the sales tax framework (rate, coverage, exemptions, and administrative provisions for tax collection and compliance).
  • Section 2 repeals the existing Section 5739.02 and Section 3 notes the effective date of the amendment (the first day of the first month after the act’s effective date).

Who or what would be affected

  • Potential buyers and sellers of aircraft in Ohio, specifically nonresidents purchasing aircraft that are delivered in Ohio under the defined conditions.
  • Aircraft dealers, brokers, and financial arrangements tied to aircraft purchases, sales tax collections, and compliance activities in Ohio.
  • Ohio state and local revenue administration, which would implement and enforce the exemption consistent with other exemptions in the tax code.

Procedural and timeline aspects

  • The amendment applies on the first day of the first month after the act’s effective date (as stated in Section 3).
  • The exemption becomes operative only when the aircraft sale satisfies all conditions outlined in §5739.02(B)(67).
  • The bill’s action history shows introduction in May 2026, with sponsor and co-sponsor noted.

Notable details and considerations

  • The exemption is narrowly tailored to aircraft sold and delivered to nonresidents, with clear conditions about subsequent registration and location after sale.
  • The 30-day removal/window requirement provides a defined timeline for the nonresident purchaser to move the aircraft out of Ohio, which aids in tax administration and compliance.
  • The broader tax code provisions (rates, collection methods, and other exemptions) remain in place, preserving Ohio’s comprehensive framework for sales taxation.

If you’d like, I can provide a comparison to current exemptions in other vehicle types or summarize potential fiscal impact based on similar exemptions in past Ohio legislation.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.