Michigan Charter Aircraft Taxable

A taxpayer was found to be liable for Michigan use tax when the plane they were selling was also used in a charter flight service. In Michigan, property for resale is not typically eligible for the use tax. However, in this case the taxpayer used the aircraft for other than demonstration purposes and failed to obtain the proper dealer’s registration. (Corporate Flight, Inc. v. Department of Treasury, Michigan Court of Appeals, No. 233602 (unpublished opinion), November 22, 2002)

Posted on February 15, 2003