Excerpt from NYS Department of Taxation and Finance memo (TSB-M-04(8)S), dated December 3, 2004

Sales and use tax exemption for repair and maintenance services performed on aircraft

The Tax Law was amended to provide that receipts from sales of the services of installing tangible personal property in aircraft and of maintaining, servicing or repairing aircraft are exempt from state and local sales and use taxes. The exemption also applies to receipts from sales of tangible personal property purchased by the person providing the exempt services, provided that the property becomes a physical component part of the aircraft. The exemption also applies to lubricants applied to an aircraft by the person who performs exempt services.