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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13344
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am a start up aircraft detailing company located in Suffolk

Customer Question

I am a start up aircraft detailing company located in Suffolk County, NY. Do you need to charge sales tax on aircraft cleaning services in New York to both privately owned aircrafts and commercial use aircrafts?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.
Hello and thanks for trusting me to help you today. I am a tax adviser with over 20 years of experience.
In NY for services that require sales tax, you look to the tangible property first. Maintaining, installing, servicing, and repairing of tangible personal property requires sales tax be applied.
Commercial use of the property would be exempt from sales tax under 1115(a)(9) and 1115(a)(21).
Sales of tangible personal property are subject to New York sales tax unless they are specifically exempt. Sales of services are generally exempt from New York sales tax unless they are specifically taxable.
FREE EXTRA INFORMATION FOR YOU
The following is an advisory form NY state that covers services to commercial airlines:
http://www.tax.ny.gov/pdf/advisory_opinions/sales/a03_46s.pdf
Customer: replied 1 year ago.
I don't understand the answer. Am I required to charge sales tax?
Expert:  Robin D. replied 1 year ago.
Yes for any detailing that is not on commercial.
You would not charge sales tax on commercial airlines.
Customer: replied 1 year ago.
Thank you
Expert:  Robin D. replied 1 year ago.
You are most welcome.
My goal is to give you excellent service.
Your positive rating is thanks enough
Customer: replied 1 year ago.
But I've read that maintenance on any aircraft is tax exempt. Therefore, wouldn't the cleaning of the aircraft be a form of preventative maintenance since it is protecting the paint?
Expert:  Robin D. replied 1 year ago.
The maintenance on commercial is exempt. That is why I advised no sales tax on the commercial servicing.
Customer: replied 1 year ago.
But the tax exempt status for maintenance applies to general aviation aircraft as well, so wouldn't the cleaning fall under that? Sorry to ask the same question in a couple different ways, just trying to make sure everything is black and white so I am not going to have any problems once it is time to file my 941.
Expert:  Robin D. replied 1 year ago.
What you perform would be maintenance as it does protect the outer shell.

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