Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 72-41

1972-1 C.B. 353

IRS Headnote

Aircraft owned and operated by the United States Army are not "taxable civil aircraft" even though they are registered with the Federal Aviation Agency; Revenue Ruling 71-514 distinguished.

Full Text

Rev. Rul. 72-41

Advice has been requested whether, under the circumstances described below, certain aircraft are subject to the tax imposed on the use of civil aircraft by section 4491(a) of the Internal Revenue Code of 1954.

The aircraft are owned and operated by the United States Army and are registered (but not required to be registered) with the Federal Aviation Administration. The aircraft have been assigned identification numbers by that Agency.

Section 4491(a) of the Code imposes a tax on the use of any taxable civil aircraft during any year.

Section 4492(a) of the Code provides that the term "taxable civil aircraft" includes any engine driven aircraft (1) registered, or required to be registered, under section 501(a) of the Federal Aviation Act of 1958, 49 U.S.C. 1401(a), or (2) which is not described in (1) but which is owned by or for a United States person.

Section 154.3-1(b)(2) of the Temporary Regulations in Connection with the Airport and Airway Revenue Act of 1970, provides that the term "taxable civil aircraft" includes civil aircraft owned by the United States and State and local governments but not military aircraft and aircraft of the National Guard.

Since the aircraft in question are owned and operated by the United States Army, they are military aircraft. Therefore, they are not "taxable civil aircraft" within the meaning of section 4492(a) of the Code and section 154.3-1(b)(2) of the temporary regulations, even though they are registered with the Federal Aviation Administration. Accordingly, it is held that the tax imposed by section 4491(a) of the Code does not apply with respect to the use of such aircraft.

This Revenue Ruling is distinguishable from Revenue Ruling 71-514, C.B. 1971-2, 378, which relates to the use of certain aircraft by Armed Forces flying clubs. In that Revenue Ruling, although the aircraft are owned by the Armed Forces, they are not operated by the Armed Forces. Since the aircraft described in that Revenue Ruling are not operated by a branch of the Armed Forces during the time they are on loan to the flying clubs, they are not "military aircraft" within the meaning of section 154.3-1(b)(2) of the regulations.