Aerospace FAR Repair Stations

From the 2024 DOR Tax Exemption Study

82.08.025661; 82.12.025661 - Aerospace FAR Repair Stations Description FAR Part 145 certificated repair stations engaged in the repair of airplanes receive sales and use tax exemptions on: - Charges for the construction of new buildings. - Charges for tangible personal property that is incorporated as an ingredient or component of such buildings. - Charges for labor and services rendered in respect to installing building fixtures that do not qualify for the machinery and equipment exemption. A repair facility's construction is operationally complete when the facility can host the repair and maintenance of airplanes. To perform work on aircraft in the United States an entity must be licensed by part 145 of the Code of Federal Regulations (CFR Part 145). Repair stations meeting the criteria are often called FAR Part 145 repair stations. To be eligible for the exemptions, the eligible maintenance and repair facility must be located at a commercial services airport owned by a county with a population less than one million, or a commercial services airport jointly owned by a city and a county. The exemption is in the form of a remittance from the department for taxes paid. The entity ma