James Keane wrote:
Is anyone aware of any interesting loopholes to this sales tax law?

I'm not aware of New York's rules specifically, but I believe you can
avoid paying sales tax.

It might be worthwhile to check out an aviation tax advisor. I've used
Advocate Aircraft Taxation Company (http://www.advocatetax.com) with
good results. They're expensive, but thorough and time-saving. The
NBAA (http://www.nbaa.org) has a directory of members who provide
similar services.