Air sports

Charges for the following activities, including lessons, are generally subject to business and occupation (B&O) tax under the Retailing classification, and the seller must collect sales tax:

• Ballooning.
• Hang gliding.
• Indoor or outdoor sky diving.
• Paragliding, parasailing, and similar activities.

Exemption

Skydiving or ballooning activities that take place in federal airways are exempt from retail sales tax and B&O tax. You can use tools such as http://vfrmap.com/ to determine if any of your business activities take place in a federal airway.