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  #11  
Old 02-11-2005, 08:53 PM
jvarney jvarney is offline
 
Join Date: Jan 2005
Posts: 5
Default

Quote:
Originally Posted by Build9A
In Florida it's 6% of the value of the plane. You have to send a bill of sale with the payment.

<snip> The point here is they have not asked for engine or avionics costs. In Florida its good to get a registration # early in the process. build9a finishing.
Shhhhhhhhhh..........
James
(further south in Florida and not yet registered)
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  #12  
Old 02-12-2005, 11:40 AM
photoadjuster photoadjuster is offline
 
Join Date: Feb 2005
Location: Lubbock, TX
Posts: 37
Default Texas

In Texas there is no property tax on private aircraft. There is a tax on aircraft used for hire or other commercial uses.

The appraisal district watches the FAA registry and sends everyone a tax bill. If your plane is private you must go down and fill out, sign and notarize an affidavit to get exempted.

Regards,
Mike Stephenson
Skylane & RV-6A (90%)

Last edited by Rosie : 02-08-2006 at 05:32 PM.
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  #13  
Old 02-12-2005, 04:58 PM
Skyhook Skyhook is offline
 
Join Date: Jan 2005
Posts: 159
Default New York

No property tax here in NY, either. There's a one-time sales tax (variant upon county/city of residence) of about 7%. That's it---so far.

Last edited by Rosie : 02-08-2006 at 05:33 PM.
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  #14  
Old 02-12-2005, 06:07 PM
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Jaypratt Jaypratt is offline
 
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Location: Hicks Airfield, Fort Worth,Texas
Posts: 1,728
Default Tax

Florida is looking for sales tax. Not property tax.
All states get you one way or the other, sales tax, state income tax,. Texas gets my $ in land ownership tax. I pay a school Tax of $2000 on my hanger, I have no kids.??

You may avoid some tax by regestering your airplane in Deleware or Nevada and doing a Corp. there.
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Last edited by Jaypratt : 02-13-2005 at 05:43 AM.
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  #15  
Old 02-13-2005, 11:25 PM
goflynRV7 goflynRV7 is offline
 
Join Date: Jan 2005
Location: Moved from Ketchikan, AK to Pocatello, ID
Posts: 28
Default Colorado Statute 39-26-711

This kinda seems to be saying the airplane parts in Colorado are not taxed.


Source: Colorado Statutes : TITLE 39 TAXATION : SPECIFIC TAXES : Sales and Use Tax : ARTICLE 26 SALES AND USE TAX : PART 7 SALES AND USE TAX EXEMPTIONS : 39-26-711. Aircraft - tangible personal property.

39-26-711. Aircraft - tangible personal property.

Statute text

(1) The following shall be exempt from taxation under the provisions of part 1 of this article:

(a) Effective July 1, 1984, the sale of aircraft used or purchased for use in interstate commerce by a commercial airline; and

(b) The sale of tangible personal property that is to be permanently affixed or attached as a component part of an aircraft.

(2) The following shall be exempt from taxation under the provisions of part 2 of this article:

(a) Effective July 1, 1984, the storage, use, or consumption of aircraft used or purchased for use in interstate commerce by a commercial airline; and

(b) The storage, use, or consumption of any tangible personal property that is to be permanently affixed or attached as a component part of an aircraft.

History
Source: L. 2004: Entire part added with relocations, p. 1024, ? 2, effective July 1.

Annotations
Editor's note: Subsection (1)(a) was formerly numbered as section 39-26-114 (1)(a)(XXII), subsection (1)(b) was formerly numbered as section 39-26-114 (1)(a)(XXIII), subsection (2)(a) was formerly numbered as section 39-26-203 (1)(aa), and subsection (2)(b) was formerly numbered as section 39-26-203 (1)(cc).
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Pocatello, ID / RV-7A
(wings, fuse, emp, finish kit in the garage...back to riveting)
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  #16  
Old 02-14-2005, 02:45 PM
MistyFac MistyFac is offline
 
Join Date: Jan 2005
Location: Pacific NW
Posts: 2
Default Washington Tax

Here in Washington you pay "Use" tax (8.9% in Pierce County) when you bring a plane in, experimental or not, or sales tax (also 8.9%) if you buy it in state. For a kit I'm told they will use the receipts as a basis for the value. After that its $25/year for registration. Kansas also uses the receipts to determine value and told me today that a $50,000 RV-8 based in Riley County would cost me $1800/year. Arizona has no fee for experimentals.
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  #17  
Old 02-01-2006, 11:34 PM
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ScottSchmidt ScottSchmidt is offline
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Location: Salt Lake City, Utah
Posts: 1,158
Default Arizona Tax

Does anyone know the tax in Arizona?

Also, is it possible to register a plane in Arizona even though I live in Utah but own property in Arizona?
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RV-10 N104XP (1280 Hours)
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  #18  
Old 02-02-2006, 01:13 AM
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az_gila az_gila is offline
 
Join Date: Jan 2005
Location: 57AZ - NW Tucson area
Posts: 10,011
Unhappy Arizona tax

Just did this.

Planes are taxed (personal property) at 1/2 % per year of the state's valuation (blue book).
BUT... gliders, antiques and experimental are registered (taxed?) yearly at a flat rate of $25 per year.

If you bring a plane into state and bought it from a private party (not a dealer) there is no use tax (sales tax) applied.

I had my Tiger in a MD. corp. when I had a partner (his idea), but it cost the same amount as the tax AZ charged, so I quit it when I bought him out.

If you establish an AZ address, I guess you could do it.. but does that make you liable for AZ income taxes?

Details are on the state web site under Aviation...

gil in Tucson

Last edited by Rosie : 12-08-2006 at 12:37 AM.
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  #19  
Old 02-02-2006, 01:16 AM
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gmcjetpilot gmcjetpilot is offline
 
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Posts: 4,285
Default Google and don't get caught

Quote:
Originally Posted by ScottSchmidt
Does anyone know the tax in Arizona?

Also, is it possible to register a plane in Arizona even though I live in Utah but own property in Arizona?
Google personal property tax Arizona, Utah, airplanes or an combo or these and other key words. From above experimental a/c are exempt, which is cool, but could change tomorrow. I am not saying Gil is wrong, but what ever state you live in you should get the tax code and see it in writing.

For AZ:
http://www.revenue.state.az.us/brochure/606.pdf
http://www.revenue.state.az.us/brochure/545.pdf
http://www.revenue.state.az.us/Forms...ty/usecode.pdf
http://www.cityofprescott.net/_d/use_tax.pdf

For UT:
http://www.co.davis.ut.us/assessor/p...y/aircraft.cfm

I know you are not asking can you cheat but some people do try to use the two state scam to avoid taxes, with differnt levels of success.

My suggestion is register and pay taxes in the same state you live and will base the plane. Some states have a one time tax and others charge tax yearly. Some states have exemptions and you may be able to get under one of those with creative accounting.


This is another way to put it; Can you cheat on your taxes? Yea sure you can, but of course its illegal and penalties for getting caught can be high.


State auditors and State Police cruise airport ramps, marinas and highways and take down registration #'s of planes, boats and pull over out of state cars that get noted (logged into the computer) repeatedly over a period of time. A simple check for the state is to check if you have a driver license number in that state and where the plane is registered. If the name matches and the addresses differ, you will get a letter and the chance to explain. Many states have a TAX sticker that allows a quick check to see if you're payed up.


A millionaire with several private jets planes, boats and cars tried this, setting up a fake business in a neighboring state with no PP Tax, but based and used the assets in another. He got caught. PP tax may not get you jail time but it will get you into some serious back taxes and fines.

The best you can hope to do is prove the lowest value to lower tax liability. The best way is to save all the receipts and show them what it cost, and be sure to show any sales tax you payed in that state, which is deduct. I know one guy who just showed the auditor the cost of the kit and they took that. That was a wind fall savings for him, but don't count on that. Since most of us buy from out of the state, sales tax free, we enjoy some nice savings during the build process, but someone sometime is going to have their hand out sooner or later. The Government (mostly states) want to do away with sales tax free internet sales. If they change that rule you will no doubt have to pay sales tax on the engine, prop, airframe kit and every nut an bolt you buy from Spruce or who ever. The good news, if you can call it that, is that would come off the PP tax bill (may be). If they double dip, sales tax and PP tax (which is not inconceivable since they do that with cars), than I would move to another state. I know Oregon is one of the states without PP Tax.

Back in the 80's homebuilt planes where less wide spread, so you could tell the state you built it for $10-grand. They took what you said, wrote it down and taxed on that, done deal. Unfortunately we are victim's of our own success. If you tell them your RV-X cost $10,000 now a days, they will laugh at you. State auditors are more savvy and know what RV's sell for. Every state is different and had to go thru this in two states. Some states like NY want you to pay as you go, PP tax on the tail kit, wing kit, fuselage kit, etc..... before you finish it; flying or not they want you to show (give) them the money. Of course the state may have a hard time enforcing this.

So my suggestion is to anyone is just follow the rules and you won't have to worry about looking over your shoulder. Yes you can register in another state and be able to avoid taxes, but if the sole purpose is to avoid paying the state you live and operate out of, you could get caught. There are allowances for people who do live in two states and are only part time residence or each. That's important in a snow bird state like AZ. Love AZ by the way and stayed there a lot over the years, since my Dad lived there in the PHX area.

I know a guy in WA state that got in an argument on the airport ramp with a State Trouper, who was doing a "tax ramp check". The Trouper asked why he did not have a tax sticker on his RV-4. My friend almost got arrested arguing. Actually he got bum advice. Most states have an exemption for "manufactures". Since we're the manufacture (in the FAA eyes) we can claim we're allowed the exemption, but this has been disallowed in states like WA. For tax purpose manufacture is someone who is in business of building for profit and thus is paying other taxes. Since we can not build for profit or manufacturing for resale, it makes sense. Just know the rules of the game.

From what I see UT is not that bad. It looks like $400 on $100-grand. So what they think a RV-10 is worth is up for grabs. I know you could build a basic RV-10 for around $100 to $120-grand without much problem, but than people are asking $225,000, so your job will be to assure the state your plane is worth less. If you have paper to prove it than they will be more likely go along. I can't see how they can argue with the facts and charge you for your own labor.

George

IS THERE ANY CENTRAL PLACE TO LOOK UP PP TAX ON EXPERIMENTAL AIRCRAFT FOR ALL STATES? That would be nice resource for all.

Last edited by gmcjetpilot : 02-02-2006 at 03:28 AM.
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  #20  
Old 02-02-2006, 02:16 AM
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rv8ch rv8ch is online now
 
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Location: LSGY
Posts: 3,200
Default Value vs. cost

Quote:
Originally Posted by George
I can't see how they can argue with the facts and charge you for your own labor.
If only this were true. If you built a beautiful house yourself out of scrap lumber and supplies you got for free from a demolition site, the tax man will try to tax you on the value of your house, not what it cost you to build. I'd bet the same will apply to the aircraft you built. If all of a sudden everyone on the planet wants to fly an RV, and they are willing to pay $500,000 for one, guess what - you're gonna owe a lot more tax!
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