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Questioning the TAX man

seagull

Well Known Member
I received my annual airplane property tax bill valuing my -12 at $8000 over what I purchased it for 1 ½ years ago and 250 hours later. I have the option to contest the valuation but have been told I would possibly need an appraisal for it to have any teeth. Apparently most counties use VREF but the -12 does not show on there. Add to the confusion the S-LSA is worth significantly more than the E-LSA, hard to know if the tax man knows the difference.

Has anyone had this experience, hired an appraiser, or any other thoughts?
 
This is always hard - fighting the tax man. Up here in Alameda county, the assessed value is supposed to be as of last Jan 1, with the tax bill due in august. In the spring, they send out a questionaire, for updates. Failure to return it invokes an immediate increase (I forget the percentage) in the assessed value. Does your county have similar rules? Did you forget the questionaire? Unlike property tax on houses the tax on airplanes is based on market value, and that has apparently increased a lot. Still, most assessors are human, and it doesn’t hurt to give them a call. No, they probably don’t have a clue about different models. Ask them.
 
Given the state of the used aircraft market the last two years the increase is probably on the low side. I think I would just accept it. Hard to know however without the actual number they valued it at.
 
Tax Collector

Having been on both sides of this issue over the years, it can be quite frustrating due to the inconsistency of the tax process. Variations between states and within states, between counties and within counties. In Georgia, some counties really rely on the tax income and thus uses valuation techniques that get the max tax while others counties treat them with less rigor. When I was sharing these thoughts with a friend of mine who is still in govt, he jokingly sent me this clip and, he got a good laugh. Me not much so.
https://m.youtube.com/watch?v=dJD0lB4zRes
 
Fortunately, in AZ they get you once when you buy it for sales tax, but it’s only $25/year after that.

Unlikely as it is that Minnesota would miss a taxation opportunity, there is no personal property tax on airplanes. Just an annual registration fee of $100 for any airplane whose value is less than $500,000.
 
AZ Tax

Fortunately, in AZ they get you once when you buy it for sales tax, but it’s only $25/year after that.

Even more fortunately in AZ, if you buy a flying aircraft from a private party (don't recall the exact definition, but it's something to the effect that they aren't regularly engaged in the sale of aircraft), there is no sales tax due either. You'll probably get an invoice from the state, but you just submit an affidavit that you purchased is from a private party, and the state releases you from the invoice.
 
Taxman

You guys are twisting the knife😂, I live in California, we have a very thirsty government.

1) Understand your pain. We lived in CT for a few years--nice place in many ways, but at tax time...ouch.

2) There's a fix for that.
 
I'm in Yolo county and last year I received a tax statement that almost doubled the value of the aircraft. I just made a phone call to the assesors office explaining why I thought there assesment was incorrect. I found an ad for the most similar plane I could find, and informed them I would send an email.

I had to pay the invoice that they originally sent to not incur late penalties. They reviewed the previous tax statments, the ad I send with comparisions to my plane, and issued a new statement with a refund of the difference.

I did not get an appraisal. Also, it seems the value of aiplanes have skyrocked in the last year; it may indeed be worth 8k more.

So... start with a phone call.
 
To late for you but for the folks building do not call it an RV##. Use personal initials or anything else. They will not find another to compare to.
 
To late for you but for the folks building do not call it an RV##. Use personal initials or anything else. They will not find another to compare to.

Unless you're building E-LSA, in which case you have to use the model as specified by Van's.
 
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