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If I register my aircraft with the FAA, do I still need to
register it in Iowa?
Yes. Registering your aircraft
with the FAA does not meet your obligation to register
it in Iowa.
Iowa law requires that all
aircraft based and/or operated in the state more than 30
days must be registered with the Iowa Department of
Transportation. Aircraft must be registered in Iowa
within 30 days from the date the aircraft was purchased
or brought into the state. A purchaser of an aircraft
who will be basing and operating the aircraft for 30
days or more in Iowa shall provide the following to the
department within 30 days of purchase date:
- Fully completed aircraft
registration application; and
- Six percent use tax with a
copy of a bill of sale (see below for use tax
exemptions)
The aircraft registration must be
renewed every year the aircraft is based or operated in
the state. A renewal notice is mailed 30 days prior to
your registration month. Additional information
regarding your aircraft is requested on the renewal
notice. This information is important for developing
aircraft fleet analysis and in system planning for
continual airport improvements.
Who
is exempt from registration requirements?
- aircraft
registered in a foreign country
- aircraft owned by an Iowa
resident that is continually located and operated
beyond the boundaries of the state
- aircraft owned by a
government entity
- aircraft which is lighter
than air and not engine driven, i.e., hot air
balloon
- aircraft which is displayed
in a museum
What happens if the aircraft is not registered at the
appropriate time?
When registering a newly purchased
aircraft or an aircraft brought into the state, you have
30 days to complete the registration process, starting
with the date of purchase or the date an aircraft is
brought into Iowa. If you fail to register your aircraft
within that time period, a monthly penalty of 5 percent
of the registration fees will begin to accumulate. The
penalty begins on the first day of the month following
the 30-day registration period explained above.
How are
registration fees determined?
When an
aircraft other than a new aircraft is registered in Iowa,
the registration fee shall be based upon the model year of
the aircraft.
The fees are determined by the
aircraft’s use:
- scheduled airline used for
interstate operation - $100;
- fixed base operator providing
general public service - $100;
- a helicopter used exclusively
as an air ambulance service - $1,000;
- aircraft that is 30 years old
or older and is for personal use - $35; or
- all aircraft used for
business and aircraft less than 30 years old that is
used for personal use only, the following schedule
applies: (rounded to the nearest whole dollar with a
minimum registration fee of $35)
- manufacturers list price
X 1% = first year’s fee not to exceed $5,000
- manufacturers list X .75%
= second year’s fee
- manufacturers list X .50%
= third year’s fee
- manufacturers list X .25%
= fourth year and older.
If list price information is not
available for the aircraft, contact the Office of
Aviation with the year, make, and model of the aircraft
to determine an average manufacturers list price.
Aircraft shall not be registered
for a fee of less than $35 or more than $5,000.
For an aircraft which was
assembled and no established manufacturer’s list price
exists, the cost of the aircraft kit and any additional
parts will be used to determine the list price. The fee
schedule shown above will be used to determine the
registration fee for home-built aircraft.
What are the requirements and fees on a transfer of
ownership?
A purchaser of an aircraft who
will be basing and operating the aircraft for more than
30 days in Iowa shall provide the following to the
department within 30 days of purchase date:
- the notice of transfer of
ownership;
- fully completed aircraft
registration application; and
- five percent use tax with
a copy of a bill of sale.
If the aircraft is currently
registered, the fees shall transfer to the purchaser of
the aircraft. The notice of transfer of ownership must
be submitted within 30 days from the date of purchase to
avoid a $5 penalty. Any delinquent registration fees and
penalties must be paid at the time of transfer.
Do I have to register an aircraft that is not airworthy?
Yes. However, there are no
registration fees due on an aircraft that is not
airworthy. Once registered, you will receive an
unairworthy certificate which stays with the aircraft.
You will need to contact the Office of Aviation
when the aircraft becomes airworthy.
What happens if I sell my aircraft? Do I receive a refund?
If an aircraft is sold to a person
in Iowa, the notice of transfer of ownership must be
completed and given to the new owner. If the aircraft is
currently registered, the fees will transfer to the new
owner and no refund will be given.
If an aircraft is destroyed,
dismantled or removed from the state, you must return
the certificate of registration to the Iowa DOT within
10 days and request a refund for the unexpired portion
of the registration fees. No refunds of less than $35
are allowed.
Do I have
to pay use tax on my aircraft?
As of
July 1, 2008 a six
percent use tax on
the purchase price of an aircraft will
be collected by the Iowa Department
of Transportation’s Office of
Aviation on aircraft registered in
Iowa. Payment should be sent with
the Application for Aircraft
Registration, along with a copy of a
bill of sale, and fees for annual
registration.
Purchase price is the total
consideration including cash,
credit, property and services for
which an aircraft is sold.
When an
aircraft is traded-in on another
aircraft, whether new or used, tax
is due only on the difference
between the purchase price and the
trade-in allowance. It does not
matter whether the transaction is
between individuals, or with a
dealer.
You
may be exempt from tax if:
1.
if an owner moving to Iowa
has owned the aircraft for more than
one year
2. if an owner moving to Iowa
has owned an aircraft for less than
one year, but can
provide proof that use tax
has been paid in the previous state
of registration
3. if the ultimate end users of the aircraft will pay
sales tax (i.e. rental, lease)
4. if you submit a letter of
exemption from the Department of
Revenue.
The
Office of Aviation, at its
discretion, may direct aircraft
registration applicants to the Iowa
Department of Revenue to obtain a
letter of exemption if there are any
questions about the requirement to
pay use tax on a newly registered
aircraft.
If you have questions
regarding use tax or tax exemption,
first contact the Office of Aviation
at 515-239-1691. If there are
additional
questions, contact Taxpayer Services
at 515-281-5603.
Contact
information for aircraft registration
Iowa Department of
Transportation
Office
of Aviation
Aircraft Registration
800
Lincoln Way
Ames,
IA 50010
515-239-1691
515-233-7983 Fax
aircraftregistration@dot.iowa.gov
iawings.com
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