Direct Pay Permit for Sales and Use Taxes on Qualified Jet Engine A direct pay permit (DPP) 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. A business with a direct pay permit assumes responsibility for payment of all applicable taxes on a qualified jet engine directly to the Department. The maximum use tax on a qualified jet engine purchased under a direct pay permit is two thousand five hundred dollars ($2,500). 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. N.C. Gen. Stat. § 105-164.3 defines a qualified jet engine as an "engine certified pursuant to Part 33 of Title 14 of the Code of Federal Regulations." 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. A taxpayer authorized to discharge their liability in this manner are issued a numbered direct pay permit to purchase a qualified jet engine subject to sales or use tax without payment of tax to vendors. The vendor's liability is relieved when the vendor secures a copy of the direct pay permit or when the vendor secures the information as to a purchaser's name, address, type of business, reason for exemption, and exemption number. A business, which has been issued a permit for a qualified jet engine must file sales and use tax returns, remit the sales and use taxes due on the qualified jet engine, and maintain records that clearly reflect the tax liability. The database at the following weblink contains the names and permit numbers of current Direct Pay Permit holders: Firms Assigned Direct Pay Permits for Sales and Use Taxes on Qualified Jet Engines Refer to the Sales and Use Tax Bulletin for Direct Pay Permits for additional information.