Direct Pay Permit for Sales and Use Taxes on Qualified Jet Engine
General Information
A direct pay permit for a qualified jet engine allows a business to make all of its purchases of qualified jet engines without payment of sales and use tax to vendors and authorizes the vendors not to collect any tax on a sale to a permit holder. A direct pay permit issued for a qualified jet engine does not apply to the purchase of any tangible personal property or service other than the purchase of a qualified jet engine.
The maximum use tax on a qualified jet engine purchased under a direct pay permit is two thousand five hundred dollars ($2,500).
The holder of a direct pay permit for sales and use taxes for a qualified jet engine must file applicable tax returns, remit the tax due, and maintain records that clearly reflect the tax liability.
Who Qualifies?
A direct pay permit can be issued to a business or person who plans to purchase a qualified jet engine. A qualified jet engine is defined as an engine certified pursuant to Part 33 of Title 14 of the Code of Federal Regulations.
Application Process
A business may request permission from the Secretary of Revenue to discharge its sales and use tax liability on a qualified jet engine directly to the Department by completing Form E-595JE, Application for Direct Pay Permit for Qualified Jet Engine. The authorization by the Secretary is conditioned upon full compliance with the provisions of the Sales and Use Tax Law and timely payment of all taxes due.