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-   -   California taxes (https://vansairforce.net/community/showthread.php?t=178228)

CanyonDweller 01-01-2020 11:30 AM

California taxes
 
In Texas when an airplane is sold between two individuals no taxes are collected. My question to those in the know, if an RV is sold from California to someone in Texas, will California collect taxes from an out of state buyer? The plane would leave California for Texas. This would change the buying decision.

SantosDumont 01-01-2020 12:30 PM

In CA there's no sales tax on aircraft (bought out of state), there is unsecured property tax. They have to pay taxes to the county on the value of the aircraft each year.

https://www.cdtfa.ca.gov/industry/ve...raft-guide.htm

RV10Pilot 01-01-2020 12:31 PM

Here is a resource that may help. https://www.cdtfa.ca.gov/industry/ve...e.htm#Aircraft

To be safe it make make sense to take possession and close the deal when the plane is in Texas, but I am no expert.

gfb 01-01-2020 12:33 PM

Note that the occasional use exemption for Texas only applies if the seller has not made more than one other taxable sale within the previous twelve months. For example, if the seller also sold two used cars within the previous twelve months, the airplane sale is no longer tax exempt.

https://comptroller.texas.gov/taxes/...ons/94-168.php

BobTurner 01-01-2020 12:34 PM

I don?t know the answer, but I think if the current owner flies the plane to TX before completing the transaction, CA cannot assess sales tax. What I do know is that the current owner is in for an unpleasant surprise: CA assesses personal property as of Jan 1. In July the current owner (as of Jan 1) will get and owe a 1% property tax, even if he has sold the airplane.

RV7A Flyer 01-01-2020 02:51 PM

Just to be precise...in CA, it's not the *state* that levies the personal property tax, it's each *county*. Granted, they're probably all the same 1%, but I don't know for sure (I only know that mine is 1%).

Jaypratt 01-01-2020 03:39 PM

California
 
If you buy in California. Fly it out. Do not stop anywhere.
Have the buyer sign a casual sale form, if they are not a dealer. You will not owe tax in Texas.

Piper J3 01-01-2020 03:48 PM

Quote:

Originally Posted by Jaypratt (Post 1396751)
If you buy in California. Fly it out. Do not stop anywhere.

What if you need to stop and take a wizzzz before reaching the state line?

CanyonDweller 01-01-2020 03:51 PM

Thanks, everyone. This certainly helps with a decision to move forward.

Plummit 01-01-2020 04:34 PM

Quote:

Originally Posted by Piper J3 (Post 1396756)
What if you need to stop and take a wizzzz before reaching the state line?

That could be and expensive bathroom break...:eek:

-Marc


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