To further the point, take a look at the state of Alabama.
First, certain transactions relating to transportation equipment are exempt from Alabama sales and use taxes. These exemptions include the purchase of railcars by trucking’s competitors. Not only that, but aircraft delivered in the state are not taxed if they are not permanently domiciled in Alabama and are removed from the state within three days of delivery.
Second, when trucking’s competitors purchase parts and supplies for aircraft used by air carriers with hub operations in Alabama, those transactions also are exempt.
Finally, consider the April 18 decision made by the Alabama Department of Revenue, Administrative Law Division, in the matter of Boyd Bros. Transportation Inc. v. Alabama Department of Revenue. In that case, interstate motor carrier Boyd Bros. was subject to the state’s tax on the use of tractors and trailers within its borders, even though not all tractors and trailers in the audit period were purchased in Alabama.