The Form AE-2, titled the Annual Report of Exempt Aircraft Usage, is a mandatory compliance document required by the Indiana Department of Revenue. It specifically targets aircraft owners who claim a sales tax exemption based on leasing or rental activity under Indiana Code 6-2.5-5-8(e). The form serves as an annual audit tool for the state to verify that the aircraft is genuinely being used for exempt commercial purposes (like leasing) rather than primarily for personal use. It requires owners to report a detailed month-by-month breakdown of flight hours, rental revenue generated, and sales tax remitted. This data helps the department calculate the ratio of commercial use versus personal use to ensure the owner still qualifies for the tax benefit. It must be filed every year, with a deadline of 30 days after the anniversary month in which the aircraft was originally placed in service for leasing.
How To File The Report
The completed form must be submitted to the Special Tax – Aeronautics Division of the Indiana Department of Revenue. You can file by mail using the P.O. Box address listed on the form (P.O. Box 644, Indianapolis, IN 46206-0644). Alternatively, you can fax the document to the number provided. Ensure all financial figures are accurate, as this is a legal declaration subject to perjury penalties.
How to Complete Indiana AE-2 Form
Follow these steps to ensure your report is accepted without issues.
Aircraft Identification
- FAA N Number: Enter the registration number assigned to the aircraft by the FAA.
- Make and Model: Write the manufacturer name and specific model of the aircraft.
- Aircraft Serial Number: Provide the unique manufacturer’s serial number.
- Purchase Price: Enter the original purchase price of the aircraft.
- Base Airport: List the airport where the aircraft is primarily stationed.
- Manufacture Year: Enter the year the aircraft was built.
Ownership And Lessee Information
Registered Owner of Aircraft
- Name: Enter the legal name of the aircraft owner.
- Federal ID / Taxpayer ID: Provide the owner’s FEIN or Indiana Taxpayer Identification Number.
- Street Address, City, State, ZIP: Enter the owner’s full mailing address.
- Telephone Number: Provide a contact phone number.
Organization Aircraft Leased To
- Name: Enter the name of the company or individual leasing the aircraft.
- Federal ID / Taxpayer ID: Provide the lessee’s FEIN or Indiana Taxpayer ID.
- Address Details: Complete the street address, city, state, ZIP code, and phone number for the lessee.
Monthly Usage And Revenue Breakdown
This table requires data for all 12 months. For each month listed (January through December):
- Month/Year: Next to each month name, write the specific year (e.g., January/2026).
- Total Hours Flown Per Month: Enter the total flight hours recorded for that month.
- Total Lease / Rental Revenue: Enter the gross revenue earned from leasing the aircraft during that month.
- Total Sales Tax Remitted: Enter the amount of sales tax collected and paid to the state for those lease transactions.
Annual Summaries
At the bottom of the table, calculate the totals for the year:
- Annual Hours Flown: Sum all the monthly flight hours and enter the total here.
- Annual Lease / Rental Hours: Enter the total number of hours the aircraft was rented out to third parties.
- Annual Hours of Use by Owners: Enter the total number of hours the aircraft was used personally by the owner.
Certification
- Signature: The authorized person must sign the form, certifying under penalty of perjury that the information is correct.
- Date: Enter the date of signing.
- Printed Name and Title: Clearly print the name and job title of the person who signed.