Minnesota - sales tax

[az_gila]

Originally Posted by dougweil

Hi Bob:

I just finished this process with my RV-7. First I sent in the FAA application for registration and received that back in less than 2 weeks so now N722DW was officially registered with the Feds. Then I went to the MN DOT's website and downloaded the Aircraft Registration Form. You fill that out and you will note on the form that MN wants 6.875% of the cost of the kit, engine, and prop. Fill out the form, write the big check (ouch!) to the Commissioner of Transportation, send it in. A week later I get the bill for the actual aircraft registration ($405). And I see that just as soon as I sent in my sales tax, the state of MN announced a budget surplus!!! As a Wisconsin resident, I was SOOOO glad to help my neighboring state on the road to fiscal health!!!!!

Dumb question, but don't you owe sales..errr use... tax to the state you reside in?

I can see registration fees going to the state the plane is based in, but I would think that the sales tax is dependent on the owners residence location...

[LettersFromFlyoverCountry]

I think Minnesota and Wisconsin have a tax reciprocity agreement, or at least they did.

Oh, and for those who stumble across this thread later, here's the form Doug (and also a hat tip to David Maib) was talking about.

I don't suppose I can get away with saying this is a glider...

[az_gila]

Originally Posted by LettersFromFlyoverCountry

I think Minnesota and Wisconsin have a tax reciprocity agreement, or at least they did.

Oh, and for those who stumble across this thread later, here's the form Doug (and also a hat tip to David Maib) was talking about.

I don't suppose I can get away with saying this is a glider...

So am I correct in assuming that MN use tax is less than WI so invoking the reciprocal agreement is worth it?

But even then most states just give credit for taxes paid to another state and want the difference if their taxes are higher...

[MNForrest]

Bob - could you get yourself an aircraft brokers license? May be cheap and easy with the cooperation of the airport you are based at. According to the MN rules - as I read them - you could then forego the taxes and the buyer pays them (MN or elsewhere) on the purchase price. Am I nuts?

Also, Gil, Minnesota requires registration in MN and sales tax on any aircraft based here, regardless of where the owner resides.

Forrest

[LettersFromFlyoverCountry]

I guess I COULD. I'm not really sure. I don't really want to end up with -- as David Maib put it -- a cot in Stillwater (prison).

I also tend to distinguish my depression at the size of the tax bill from my obligation to pay lawful taxes. I'll just add 'em into the sales price.

[rvsxer]

Looks like you have all the info you need, Bob. You can put off paying until it's time to fly it.

[mkbreezy]

You folks might want to consider a move to warmer climes. In SC the sales tax on vehicles including ANY airplane is capped at $300.00, and the property tax in some counties is very low. Plus we have great weather. (Its 55 right now, going up to 75 this PM) Just sayin.

[LettersFromFlyoverCountry]

Minnesota is a fabulous place to live and raise a family. I've got a great job, it's in the middle of everywhere and it's home. Surveys continually show people in the state to be healthier and better educated, the quality of life is great and there are a lot of amenities. And the airports are in great shape. And in the winter, there are 10,000 really great spots to land if there's a problem.

I'm generally OK with supporting all of that.

Then, again, I'm not one of these babies that can't stand a little -10 weather. (g) Heck, I've built most of my plane in that sort of weather in an unheated hangar.

[D&M Dan]

Wondering if anyone can tell me how it works in NY State. Talked with my accountant and he seems to think I should pay the 8% on the 26g's I have out for the 12 now.

Just wondering if others have paid on the kits as you buy or upon registration?

[rleffler]

Originally Posted by D&M Dan

Wondering if anyone can tell me how it works in NY State. Talked with my accountant and he seems to think I should pay the 8% on the 26g's I have out for the 12 now.

Just wondering if others have paid on the kits as you buy or upon registration?

There isn't a good standard answer. Some find it easier to pay as you go. That's what I did here in Ohio. I paid on my annual state return as I purchased the kits. I've seen others pay at registration. I guess you can go through all the net present value calculations to see what makes better financial sense. It's probably a function of your ability to pay and make your you have plenty of spare savings at the end of the build to pay the taxes, insurance, and fuel.

bob