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  #151  
Old 01-26-2010, 03:27 PM
miyu1975's Avatar
miyu1975 miyu1975 is offline
 
Join Date: Apr 2008
Location: Indianapolis, IN
Posts: 1,069
Default

doesn't vans provide a final bill of sale...if so when would this come after finishing kit??/
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  #152  
Old 01-26-2010, 03:45 PM
Tomasz Tomasz is offline
 
Join Date: Dec 2007
Location: North Liberty, IA
Posts: 85
Default

Quote:
Originally Posted by don.olandese View Post
i quote the Sales and Use Tax Bulletin dated Feb 08 from Texas Comptroller of Public Accounts: "Aircraft and the Texas Sales and Use Tax."

"Exemptions.
No sales and use tax is due if the aircraft is purchased, leased, or rented by a:...
-Flight school or flight instructor.
The FAA recognized school or certified instructor must use the aircraft exclusively for FAA-approved flight instruction." END QUOTE.

i am not sure whether this means the exemption applies to instruction...
I'm not a lawyer, nor the taxman, but to me I read that 'exclusively' as 'every single hour on that plane has been logged as dual'. You will have very, very hard time convincing the taxman, that every flight with your wife was a dual given/received even if both of you write it down in your logbooks. Especially when her will show substantially more than 40h total.
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  #153  
Old 01-26-2010, 04:28 PM
bhester's Avatar
bhester bhester is offline
 
Join Date: Jan 2005
Location: Hopkinsville, KY
Posts: 957
Thumbs up Bill of Sales

Van's does provide the bill of sales but you have to call and request it.
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  #154  
Old 01-26-2010, 09:16 PM
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DakotaHawk DakotaHawk is offline
 
Join Date: Oct 2008
Location: Arlington, WA
Posts: 799
Default Bill of Sale

Van's provides a bill of sale, but they do NOT list a sales price on the BOS. The purpose of Van's bill of sale is to identify (for the FAA) the serial number assigned to your kit by Van's. The bill of sale is used only to register your RV with the FAA and has nothing to do with taxes (think of the bill of sale as the "title" to your kit).

You declare your own value for taxing purposes. For example, here in Washington, I wrote a letter to the Washington Department of Revenue which itemized all of the major purchases. I listed the slow-build cost of the kit, the engine, and some of the panel. I also made a declaration that other items, such as interior, paint, and avionics purchased in-state for which taxes had already been paid. I concluded the letter by stating the total taxable value of the various parts and the address that the plane would first enter service (the taxes vary by location). I brought the letter and my checkbook to the Dept of Revenue, they added up the figures that I supplied, and told me how much to write the check for. They then supplied me with a "Certificate of Use Tax Paid", which I supplied to the Washington State Department of Licensing, paid my $35 annual Use tax, and I'm all legal.

Different states deal with this differently. For example, you may pay based on the Trade-a-Plane value of your RV. I think the important part is to pay the tax before they come looking for you. When they find you, they'll probably just tell you how much to write the check for, and it's going to be at a value that they set, with penalties and fines. If you go to them first, you have more control over the final price.
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  #155  
Old 01-27-2010, 11:08 AM
RViter RViter is offline
 
Join Date: Jun 2009
Location: Mesa, AZ
Posts: 242
Default Every coin has two sides -

and the other side of this coin is slightly off topic. Lots of complaints about paying taxes and comparisons of this state vs that. We applaud the lack of taxes on Internet purchases and lament the taxes when purchased locally. As a computer network consultant (15yrs) in AZ, it is worth mentioning the false perception that local businesses compete for your dollars against a 'tax free' Internet vendor. "Use tax" is a way to level the playing field. When one of my customers compared my 'local' price against a 'tax free' Internet computer, I pointed out that as an ethical businessman he would be compelled to comply with the Use Tax filing requirement. He would also be paying shipping. In the end, the difference was minor and we got the deal (AZ got the tax.)

Every state needs X $'s of revenue to operate and some combine a lot of fees and taxes on specific 'uses' and participation in various sectors of the economy, while others collect a heavy property tax and have low 'fees' for other sectors. AZ taxes the last drop from tourists (it's the Snowbird capital of the US), rental cars, hotels, and travel industry fees. NV is income tax free because of the casino revenue.

When registering with AZ Dept of Aviation, I expect to pay a sizable one-time 'use tax' on the RV-6A 'parts & pieces' - purchased from vendors, but be exempt from 'second hand' parts such as the used Lycoming 360. There is no sales tax if/when it is sold to another individual in the future. There is a small annual 'sticker' fee, too. [This is my understanding for AZ, although it differs from a previous post on this thread.] They're now talking about a 'temporary' (3 yrs) sales tax increase of 1% now to make up for the lack of tourists, and I'm anxious about completion in that period.

What hurts is not always the price of the tax, but the value of the product/services received. AZ 'swept' the funds from all the departments (including DOA) to make ends meet in 2009. Taxes and fees for aviation will not be applied to aviation benefits for awhile.
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  #156  
Old 03-03-2011, 05:26 PM
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Lemmingman Lemmingman is offline
 
Join Date: Jun 2010
Location: McKinney, TX
Posts: 689
Default Arkansas state tax on RV and other homebuilts...

Ok, so you live in the Natural State and want to know what the tax situation is for building an RV. I found out today.

Basically the state does not require you to pay sales tax on the kit/engine/avionics until after the aircraft is airworthy and receives its FAA pink slip. From that day you have 30-days to pay sales tax on components that have not been purchased in Arkansas. Your local state auditors office is responsible for collection.

Now, your county is a different story. Your friendly neighborhood tax assessor may want to know about your kit components and engine prior to airworthiness. In Benton County I now have to pay personal property taxes on my empennage.
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  #157  
Old 03-03-2011, 10:26 PM
gasman gasman is offline
 
Join Date: Mar 2007
Location: Sonoma County
Posts: 3,821
Default

Quote:
Originally Posted by kevinh View Post
As a CA builder who just filed for his registration as prelude for DARage, I too am curious about this.

Any more feedback from CA builders?
Expect 1%.........

EDIT....... WOW!! that post is over 12 years old!!!!! That's what I get for drinking beer and operating a computer.

Last edited by gasman : 03-03-2011 at 10:40 PM. Reason: it needed it.
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  #158  
Old 03-08-2011, 10:48 AM
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Fred.Stucklen Fred.Stucklen is offline
 
Join Date: Oct 2006
Location: Brooksville, FL
Posts: 356
Default Connecticut

..Has a 6% sales tax on everything, including aircraft. I paid the tax as I purchased each kit, each time sending a cover letter informing them that this S/N kit would eventually become FAA Registration N924RV (Reserved). When the registration became active, I got the 'Your guilty of not paying the sales tax" letter, and had to re-send them all the previous correspondence. I've since received the same letter again! This time I accused them of not knowing where my tax records were, and to check their own records! It has worked so far....
Now, with the FAA requiring re-registration of all aircraft, I'm expecting to see the "Your Guilty.." letter again.
Out new Governor here in CT has proposed a new property tax on all "Vessels", including aircraft. It will be an annual 2% Property tax based on 70% of the assessed value. Who know what they will assess a home built at. We're fighting this one tooth & nail as it will kill GA in CT......
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  #159  
Old 03-13-2011, 06:11 PM
denbobp denbobp is offline
 
Join Date: Apr 2010
Location: California
Posts: 98
Default California tax implications

Is there any guidance for a newly purchased kit brought into California? Does your usage fees start when you receive your tail number? Do you pay taxes on it as a kit or as an airplane subject to a county's interpretation of what they want to tax?
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  #160  
Old 03-13-2011, 07:16 PM
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rv9av8tr rv9av8tr is offline
 
Join Date: Dec 2006
Location: Portland, OR
Posts: 827
Default CA airplane taxes....

Quote:
Originally Posted by denbobp View Post
Is there any guidance for a newly purchased kit brought into California? Does your usage fees start when you receive your tail number? Do you pay taxes on it as a kit or as an airplane subject to a county's interpretation of what they want to tax?
Your fight may vary from county to county, but reserving an N number won't commit you to property taxes, but actually registering it will raise a red flag for the tax man. I actually ran into this when I built my Long-EZ in CA. Santa Barbara Co sent me a property tax bill after I got my real FAA registration, even though I had about a year to go before applying for the A/W cert. I wrote the county back and explained the situation. (It's a box of parts until the FAA issues the A/W Cert). That was 25 yrs ago.... and honestly, I don't recall if they let me off the hook or not.... (I'm thinking not).

My advise is, it only takes 3-4 wks to get your actual registration papers from OK City.... reserve your number early if you want a special number, but don't register the plane until a couple months before you anticipate first flight.
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