Flying Clubs (Rule 038)

Sections 63-3612, 63-3613, 63-3620, Idaho Code 01. In General. A flying club is an association of persons who have purchased or leased aircraft for the purpose of renting the aircraft to club members. The aircraft rentals to the club members are considered bare equipment rentals and are taxable at a reasonable rental value. (3-31-22) 02. Rental or Sale of Aircraft to Members. The flying club is a retailer who is obligated to obtain a seller’s permit and collect and remit sales tax. See Section 024. (7-1-26) 03. Other Charges to Members. Charges for membership fees are generally taxable. If the membership fee is not related to the rental of the aircraft, the fee isn’t taxable. Separately stated charges for flight instruction aren’t taxable. However, charges for logbooks, flight instruction manuals, or other tangible personal property are taxable. (7-1-26) 04. Aircraft Repair Parts. If the flying club is responsible for the maintenance of the aircraft, the club may purchase the necessary repair and replacement parts without paying tax. (7-1-26) IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 040 Page 19 039. (RESERVED)