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 a completed lease agreement(s).

If the exceptions above do not apply, you need to calculate your tax liability using Form 1989, Tax Calculation For Nonqualified Aircraft Transfer.

Non-Qualified Aircraft

Are used, stored, registered, or transferred in Michigan and do not meet the definition of qualified aircraft. 

For a non-qualified aircraft, 6% tax is due on the greater of the purchase price or retail value* at the time of acquisition. Tax is due when the aircraft enters Michigan.

Qualified Aircraft

Are purchased outside of Michigan, used solely for personal (nonbusiness) purposes, and one of the following applies:

  1. Non-resident (at the time of purchase) brought aircraft into Michigan more than 90 days after the date of purchase.
  2. Resident (at the time of purchase) brought aircraft into Michigan more than 360 days after the date of purchase.

For a qualified aircraft, 6% tax is due on the retail value* on the first day it is used, stored, registered, or transferred in Michigan.  

*The retail value may be adjusted according to department RAB 2017-26.

Form 1989 with Payment

Submit Forms 1989 and 4281 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.

If it is determined that you owe additional tax, you will be contacted by the department.

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

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

 

Related Documents

Form 1989, Tax Calculation For Nonqualified Aircraft Transfer
Form 4281, Aircraft Transfer Questionnaire

 

Helpful Resources

MCL 205.93 Use Tax (using, storing, consuming vehicle)

MCL 205.94 Exemptions (particular property or services)

MCL 205.179 (storing, registering or transferring ownership of vehicle)

MCL 205.181 (storage, registration, or transfer of aircraft)

Revenue Administrative Bulletin 1991-1 Use Tax Exemption on Transfer of a vehicle, ORV, mobile home, aircraft, snowmobile, or watercraft to or from a business

Revenue Administrative Bulletin 2015-25 Sales And Use Taxes - Lessors

Revenue Administrative Bulletin 2017-26 Tax Base For Transfer Of A Vehicle, ORV, Manufactured Home, Aircraft, Snowmobile, or Watercraft