Aircraft

Michigan's Use Tax Act (Public Act 94 of 1937) and the Streamlined Sales and Use Tax Revenue Equalization Act (Public Act 175 of 2004) provide for a 6% tax levied on aircraft that is used, stored, registered or transferred in this state. Please read the following carefully to determine what information needs to be provided concerning your aircraft transfer.

If any of the following apply, complete Form 4281, Aircraft Transfer Questionnaire and submit copies of the documentation indicated on the questionnaire. If it is determined that you owe tax, a bill for taxes due will be sent to you.

  • The aircraft was purchased from a dealer and sales tax was already paid. Submit a copy of the bill of sale showing you paid sales tax to a dealer in Michigan or another state.
  • Tax was already paid directly to Michigan Treasury. Submit a detailed bill of sale that substantiates the condition of the aircraft at the time of purchase and the purchase price. The FAA bill of sale is not acceptable. You should submit copies of the tax forms used, or copies of your cancelled check if no tax form was used.
  • The aircraft was purchased under a claim of tax exemption. Identify the type of exemption you are claiming in the space provided and substantiate the exemption by submitting supporting documentation.
  • You are a registered lessor, and the aircraft will be leased. Submit a copy of your Michigan Use Tax Registration with a copy of the lease agreement.
  • The aircraft was purchased outside of Michigan and is used solely for personal, nonbusiness purposes and one of the following applies:
  1. The aircraft was purchased by a person who was not a resident of this state at the time of purchase and was brought into this state more than 90 days after the date of purchase.
  2. The aircraft was purchased by a person who was a resident of this state at the time of purchase and the aircraft was brought into this state more than 360 days after the date of purchase.

If the exceptions above do not apply, you need to calculate your tax liability using Form 1989, Tax Calculation For Nonqualified Aircraft Transfer. Submit the form with your remittance made payable to "State of Michigan." You must include a detailed bill of sale that substantiates the condition of the aircraft and the purchase price. The FAA bill of sale is not acceptable.

Direct questions to Aircraft Unit, Discovery and Tax Enforcement at 517-636-4120.

Post Office Mail Address:
Discovery and Tax Enforcement Division
Michigan Department of Treasury
P.O. Box 30140
Lansing, MI 48909-7640

Express Mail Address:
Discovery and Tax Enforcement Division
Michigan Department of Treasury
7285 Parsons Drive
Dimondale, MI 48821



Related Documents
1989, Tax Calculation For Nonqualified Aircraft Transfer PDF icon
Form 4281, Aircraft Transfer Questionnaire PDF icon