IDAPA 35.01.02.038 — FLYING CLUBS (RULE 038)

Sections 63-3612, 63-3613, 63-3622, 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 required to obtain a
seller's permit and collect and remit sales tax. The sales tax, at the prevailing tax rate, is to be collected by the flying
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 039
Page 32
club and remitted to the Commission in the manner prescribed for other retailers. The tax is applicable whether the
aircraft is sold or is rented on an hourly, daily, weekly, monthly, or any other basis. The flying club, primarily engaged
in the business of making bare equipment rentals to club members, may purchase or lease the aircraft without paying
sales tax by giving to its vendor a valid resale certificate as required by Rule 128 of these rules.
(3-31-22)
03.
Other Charges to Members. Charges for membership fees are generally taxable. If the
membership fee is in no way related to the rental of the aircraft, the fee is not taxable. Charges for flight instruction, if
such charges are separately stated, are not taxable. However, charges for logbooks and flight instruction manuals are
taxable.
(3-31-22)
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 by providing a valid resale certificate.
See Rule 128 of these rules.
(3-31-22)
05.
Cross-Reference. Aircraft and Flying Services see Rule 037 of these rules.
(3-31-22)