Airplanes and related repair services for intrastate commuter air carriers

A commuter air carrier that flies within Washington pays no sales or use tax on airplanes used for its intrastate air service, on parts that become part of them, or on the labor to repair, clean, alter or improve them. To qualify, the carrier must hold federal Part 298 authority and fly at least five scheduled round trips a week on at least one route.

Who qualifies

• A "commuter air carrier": an air carrier holding authority under Title 14, Part 298 of the Code of Federal Regulations that carries passengers on at least five round trips per week on at least one route between two or more points, according to its published flight schedules (times, days and places).

What qualifies

• Airplanes for use in providing intrastate air transportation by a commuter air carrier.
• Tangible personal property that becomes a component part of those airplanes in the course of constructing, repairing, cleaning, altering or improving them.
• Labor and services for that constructing, repairing, cleaning, altering or improving.
• Use tax: the use of an airplane used primarily to provide intrastate air transportation by a commuter air carrier, and of parts and labor in repairing, cleaning, altering or improving it, is exempt.

Not covered

• Operators that do not meet the definition: no Part 298 authority, or fewer than five passenger round trips a week on any one route under a published schedule.
• Supplies, fuel and other goods for the operation. The carrier goods exemption (RCW 82.08.0261) is for carriers in interstate or foreign commerce, and RCW 82.08.0262 names only the airplanes, their component parts and the labor on them.
• Airplanes used primarily for something other than the intrastate commuter service (use tax test).

What the buyer gives

The Buyer's Retail Sales Tax Exemption Certificate, form REV 27 0032 (6/17/25), line 3, "Intrastate air transport": "Airplanes for use in providing intrastate air transportation by a commuter air carrier and the sale of repair and related services for these airplanes." The buyer ticks single use or blanket (blanket works while buyer and seller have at least one sale within 12 months), enters the seller's name, mailing address and the date, checks the line named below, lists the items purchased, and completes the certification block: type of entity, type of business, Account ID, buyer name and title, street address, and signature. The form says it is not for resale purchases. The form's instructions repeat the Part 298 and five-round-trips test.

What the seller keeps

Form REV 27 0032 says: "Seller must retain the original of this certificate for their records. Do not send a copy of this certificate to the Department of Revenue." RCW 82.08.0262 has no certificate sentence of its own; the general rule in RCW 82.08.050 applies. A FAR part 145 certificated repair station reports its retail sales exempt under RCW 82.08.0262 under the FAR Repair Station B&O classification at a preferential rate (DOR). RCW 82.32.070(1) requires taxpayers to "keep and preserve, for a period of five years, suitable records as may be necessary to determine the amount of any tax for which the taxpayer may be liable." Under RCW 82.08.050(4) a seller is not relieved of the tax unless it keeps proper records of exempt sales and provides them when asked; (7)(a) relieves a seller that obtains a fully completed certificate within 90 days after the sale, and (7)(b) allows 120 days after a department request to prove the sale was not taxable or obtain a fully completed certificate taken in good faith. RCW 82.04.470 governs reseller permits and wholesale sales; it is not the documentation rule for this exempt retail sale.

Common mistakes

• Treating any small in-state operator as a commuter air carrier. The definition requires Part 298 authority and at least five scheduled passenger round trips per week on one route.
• Using line 4b. That line is for interstate or foreign commerce for hire; intrastate commuter service is line 3.
• Exempting supplies and fuel under this line. The statute covers the airplanes, their component parts and the labor on them.

Common questions

Does an island air service flying only inside Washington qualify?

It can, if it holds Part 298 authority and carries passengers on at least five round trips a week on at least one route under published schedules.

Is engine overhaul labor exempt?

Yes. Labor and services to repair, clean, alter or improve the airplane are exempt, along with parts that become components of it.

Does the carrier need a blanket certificate for its maintenance shop?

It may give one. Form REV 27 0032 can be a blanket certificate while the carrier and the shop have at least one sale within 12 months.

Sources

• RCW 82.08.0262 (1)(a)(iii), (1)(c)-(d), (2)
• RCW 82.12.0254 (1)(a)(ii), (1)(c)-(d) use tax
• RCW 82.08.0261 (1) interstate or foreign commerce only
• DOR form REV 27 0032 (6/17/25), Buyer's Retail Sales Tax Exemption Certificate Page 1 single use/blanket; page 2 line 3; page 5 line 3 instructions; page 4 certification and retention
• DOR Tax incentive programs Aerospace Industry: B&O tax rates for aerospace businesses (FAR Part 145 repair stations)
• RCW 82.08.050 (4), (7)(a)-(c) seller records and certificate timing
• RCW 82.32.070 (1) five-year record retention
• RCW 82.04.470 (1), (7) reseller permits and wholesale sales