Rhode Island Issues Revised User Tax

The Rhode Island division of taxation issued a revised regulation regarding the application of a user tax to noncommercial aircraft in the state. The new regulation clarifies many of the uncertainties created by the previous emergency regulation, such as making it clear that the tax applies only to noncommercial aircraft exceeding specified operating limits within the state. The revised regulation also makes clear that the law applies only to “residents” of Rhode Island. However, NBAA advised that companies or individuals with “significant contacts” with or “significant operations” in Rhode Island should consult with their tax advisers to determine if they could be considered residents.