Tue, Sep 02, 2003
State 'Clarifies' Who'll Get Screwed
The special aircraft tax
was meant only to go on new A/C purchased by Rhode Islanders, the
miniature state now seems to be saying, after receiving tons of
negative feedback from pilots and operators whom the Rhode Island
legislature cannot control. The work of pilots' groups, notably the
NBAA and AOPA, was additionally influential, it seems.
NBAA, in fact, reported last month on that issuance of an
emergency regulation that could subject certain aircraft traveling
to Rhode Island to the state's use tax.
After the organization
mobilized the publicity against the tax, the Rhode Island Division
of Taxation (RIDT) has verbally confirmed to NBAA that the state's
use tax generally does not apply to property purchased by
nonresidents and used outside of Rhode Island prior to its use in
the state. The RIDT also has verbally stated that the emergency
regulation will not be applied to "nonresidents" of Rhode
Are you in or out?
However, the NBAA reports, the manner in which residency has
been judicially defined in Rhode Island raises concerns regarding
whether or not a company or individual domiciled elsewhere, but
with contacts in Rhode Island, could be considered a "resident."
NBAA is working to clarify the applicability of the Rhode Island
use tax to nonresidents and will be represented at an upcoming
public hearing on the emergency regulation.
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