Minnesota - sales tax

[DanBaier]

If you do nothing, NY will find you within a few months after registration. When the letter comes, they begin with an inquiry of how much you have in the airplane and whether any tax has been paid. They will have looked for previous filings for sales tax and will have checked your personal tax returns to determine if you paid sales tax there.

You would file for ST-141 ( http://www.tax.ny.gov/pdf/current_forms/st/st141.pdf - instructions at http://www.tax.ny.gov/pdf/current_forms/st/st141i.pdf )

You can pay as you go - keep copies of the filed forms and cancelled checks, etc. as well as the invoices that comprise the total for the aircraft.

I've seen people advise that you can avoid the tax by registering the aircraft as a XYZ-1 (rather than a RV-7) and claim that you paid the tax as you went along. However, they will typically respond by asking for copies of the receipts and want you to show that the receipts, collectively, comprise an airplane (aircraft, engine, prop, etc).

Dan

[D&M Dan]

Thanks Guys,
I will pay either through my state tax filling or with form Dan has linked. Better to get the expense out of the way and not worry about ruffling NYS Department of Taxation feathers.

[alpinelakespilot2000]

So long as the state is OK with you paying just before registration, and assigns no penalties for doing so, I don't see the value of paying as you go. First, why let the state earn interest on money you could be earning interest on? Second, what happens if you sell the project before registration?