If
I register my aircraft with the FAA, do I still need to register it in Iowa?
Yes. Registering your aircraft with the FAA does not meet your
obligation to register it in Iowa.
Iowa law requires that all aircraft based and/or operated in the
state more than 30 days must be registered with the Iowa Department of
Transportation. Aircraft must be registered in Iowa within 30 days from the date the
aircraft was purchased or brought into the state. A purchaser of an aircraft who will be
basing and operating the aircraft for 30 days or more in Iowa shall provide the following
to the department within 30 days of purchase date:
- Fully completed aircraft registration application; and
- five percent use tax with a copy of a bill of sale, or
- a letter of exemption from the Department of Revenue and Finance; or
- proof that the aircraft was purchased by a licensed aircraft dealer
for resale, rent or lease.
The aircraft registration must be renewed every year the aircraft is
based or operated in the state. A renewal notice is mailed 30 days prior to your
registration month. Additional information regarding your aircraft is requested on the
renewal notice. This information is important for developing aircraft fleet analysis and
in system planning for continual airport improvements.
Who is exempt from registration
requirements?
- aircraft registered in a foreign
country
- aircraft owned by an Iowa resident that is
continually located and operated beyond the boundaries of the state
- aircraft owned by a government entity
- aircraft which is lighter than air and not engine
driven, i.e., hot air balloon
- aircraft which is displayed in a museum
What
happens if the aircraft is not registered at the appropriate time?
When registering a newly purchased aircraft or an aircraft brought
into the state, you have 30 days to complete the registration process, starting with the
date of purchase or the date an aircraft is brought into Iowa. If you fail to register
your aircraft within that time period, a monthly penalty of 5 percent of the registration
fees will begin to accumulate. The penalty begins on the first day of the month following
the 30-day registration period explained above.
How are registration fees determined?
When an aircraft other than a new aircraft
is registered in Iowa, the registration fee shall be based upon the number of years the
aircraft was previously registered.
The fees are determined by the aircraft’s use:
- scheduled airline used for interstate operation - $100;
- fixed base operator providing general public service - $100;
- a helicopter used exclusively as an air ambulance service - $1,000;
- aircraft that is 30 years old or older and is for personal use - $35;
or
- all aircraft used for business and aircraft less than 30 years old
that is used for personal use only, the following schedule applies: (rounded to the
nearest whole dollar with a minimum registration fee of $35)
- manufacturers list price X 1% = first year’s fee not to exceed
$5,000
- manufacturers list X .75% = second year’s fee
- manufacturers list X .50% = third year’s fee
- manufacturers list X .25% = fourth year and older.
Manufacturer’s list price information is available at www.aircraftbluebook.com.
Aircraft shall not be registered for a fee of less
than $35 or more than $5,000.
For an aircraft which was assembled and no established
manufacturer’s list price exists, the cost of the aircraft kit and any additional
parts will be used to determine the list price. The fee schedule shown above will be used
to determine the registration fee for home-built aircraft.
What are the
requirements and fees on a transfer of ownership?
A purchaser of an aircraft who will be basing and operating the
aircraft for more than 30 days in Iowa shall provide the following to the
department within 30 days of purchase date:
- the notice of transfer of ownership;
- fully completed aircraft registration application; and
- five percent use tax with a copy of a bill of sale, or
- a letter of exemption from the Department of Revenue and Finance;
- proof that the aircraft was purchased by a licensed aircraft dealer
for resale, rent or lease.
If the aircraft is currently registered, the fees shall transfer to
the purchaser of the aircraft. The notice of transfer of ownership must be submitted
within 30 days from the date of purchase to avoid a $5 penalty. Any delinquent
registration fees and penalties must be paid at the time of transfer.
Do I have to register an
aircraft that is not airworthy?
Yes. However, there are no registration fees due on an aircraft that
is not airworthy. Once registered, you will receive an unairworthy
certificate which stays with the aircraft. You will need to contact the
Office of Vehicle Services when the aircraft becomes airworthy.
What happens if I sell
my aircraft? Do I receive a refund?
If an aircraft is sold to a person in Iowa, the notice of transfer
of ownership must be completed and given to the new owner. If the aircraft is currently
registered, the fees will transfer to the new owner and no refund will be given.
If an aircraft is destroyed, dismantled or removed from the state,
you must return the certificate of registration to the Iowa DOT within 10 days and request
a refund for the unexpired portion of the registration fees. No refunds of less than $35
are allowed.
Do I have to pay use tax on my aircraft?
The five percent use tax will be collected by the
Iowa Department of Transportation’s Office of Vehicle Services on aircraft registered
in Iowa. Payment should be sent with the application, along with a copy of a bill of sale,
and fees for annual registration. You may be exempt from tax if:
- you submit a letter of exemption from the Department of Revenue and
Finance; or
- the aircraft was purchased by a licensed aircraft dealer for resale,
rent or lease.
If you have questions regarding use tax or tax exemption, please
contact Taxpayer Services at 515-281-5603.
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