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Property Tax assessments

radinator

I'm New Here
San Bernardino County has decided that my 2003 RV-9A with the following features:
  1. 60 year old 150 HP engine (750 hours SMOH)
  2. No autopilot
  3. No IFR capability
  4. Not even a wing leveler
  5. Steam Gauges

That I purchased for $50k in 2016 is now worth $141k because I added a Garmin GTX345.

When I challenged it, they showed me a 2020 sale of a 2015 comp with "factory new" engine, full IFR and autopilot (seriously a nice RV-9A) that sold in 2020 for $130k. They then used that as the 'base price' and added value for my engine being only 750 hours SMOH and for my oh-so-great instruments (the new GTX345).

How do I challenge this? When I challenged their assessment I'm told "We are standing by our assessment." Their 'aircraft guy' seemingly don't know anything about aircraft. Apparently pointing out ads (what few there are) isn't enough, I have to show sales, but online ads (what few there are) disappear as soon as the aircraft is sold.

Does VAF keep a database or record of sales prices in the ads?
If not, how does one get RV values in a reasonable fashion?
 
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Is it insured? Try showing them the declared hull value. That said, most assessors know nothing about EAB. Your best bet is to do what they suggested - find some comparable sales.
 
I feel your pain

Our local village and assessor took advantage of the local crazy real estate market to increase our houses assessed value by over 50%. It was impossible to fight.
 
Poor in spirit

“Sometimes living in a trailer has its advantages.”

When I heard that line 50yr ago, I didn’t understand why someone would live in one of those. Granted back then, the floors would swell and rotten when wet, the doors never came close to touching the floors (which allowed easy access by the rodents), and walls were so thin an intoxicated person could punch a hole in it and often did. I’m sure they are better today but those trailers would decrease in value every year while my folks house would increase. I thought that was a good thing till I realized that it really depends on your goals. A person wishing to reduce his tax liability needed the trailer. For some reason, that feller always had nice 4wheelers and bass boats and other stuff. Go figure.

Back to the point, I would get an official aircraft appraisal which may come with 3 to 5 comps. Then I’d file an appeal, and go to the hearing if they have one. Most people will not fight a reappraisal so they may actually give your appeal some consideration. If that fails, move to texas.
 
Tax Assesment

What was your previous tax assesment? You could argue from that as to how could it go from 50k to 140k just by adding a @$5000.00 instrument that by itself is going to depreciate yearly.

Or get out of California if you can.


RV 14A 140507 flying
 
consider this value argument starter

The plane that you have is totally unique and different than any other 9A in the world.

There is only one of them that was ever built by the manufacturer. It cannot be compared to any other RV-9A for value-ation purposes. There is not any comparative value listed anywhere for your airplane in any 'blue book'.

Arguably, the plane's value basis is the money that changed hands when you bought it from the original manufacturer (or then current owner) and in most cases depreciated at least 5%/year since then. <(e.g., according to my County's tax assessor - this depreciation rate is what South Carolina uses to depreciate taxed airplanes). After that, then maybe the value of the GTX345 could be added (depreciated as soon as it is fired up for the first time).

This argument is the basis of what two local RV-7A builders used to push back on their plane's assessment, and they won the argument.
 
sell it

Sell it to a friend (who will sell it back to you) for 55k then buy it back for 45k, that will confuse them.
 
San Bernardino County has decided that my 2003 RV-9A with the following features:
  1. 60 year old 150 HP engine (750 hours SMOH)
  2. No autopilot
  3. No IFR capability
  4. Not even a wing leveler
  5. Steam Gauges

Does VAF keep a database or record of sales prices in the ads?
If not, how does one get RV values in a reasonable fashion?

Nobody wants that because tax assessors and the IRS would love to use the information to increase revenue. Your best bet is to either have the airplane appraised or to defeat their argument piece by piece.
 
Valuation.

I had a friend who had a rocky piece of property that was only build-able with a great investment.
When he got a large increase on the assessment, he did the following things.

1) listed it for sale immediately at the proposed assessment price, non-negotiable, with all the details he could. Essentially a good faith effort.
2) He put a legal notice in the official legal notices section of the town newspaper, with the sale listing #, address and price.
3) Went to the meeting to appeal his assessment, and offered both items, and the fact that no sale had occurred as proof that it was assessed incorrectly.
4) Produced evidence of his cost, adjusted for inflation
5) When the town's assessor stood by his assessment, my friend slid, a pen, and a filed out sales agreement across the table, with the assessor's value as the sales price, and the assessor's name as the purchaser.
6) The board and the assessor conferred on private, and came back with an assessment that my friend could live with.

You might try something similar and list it for sale online, with a world wide audience, as a good faith effort to establish the fair market value of your particular plane.

The downside is that it might be worth that to someone, and you end up selling it.

Chuck
 
First thing

At this point, the most important thing to do is to understand the procedures and deadlines for any appeal of the assessment. You've likely already investigated that, but I've been amazed over the years at how many people don't, and end up losing their right to contest a crazy assessment.

San Bernardino County has decided that my 2003 RV-9A with the following features:
  1. 60 year old 150 HP engine (750 hours SMOH)
  2. No autopilot
  3. No IFR capability
  4. Not even a wing leveler
  5. Steam Gauges

That I purchased for $50k in 2016 is now worth $141k because I added a Garmin GTX345.

When I challenged it, they showed me a 2020 sale of a 2015 comp with "factory new" engine, full IFR and autopilot (seriously a nice RV-9A) that sold in 2020 for $130k. They then used that as the 'base price' and added value for my engine being only 750 hours SMOH and for my oh-so-great instruments (the new GTX345).

How do I challenge this? When I challenged their assessment I'm told "We are standing by our assessment." Their 'aircraft guy' seemingly don't know anything about aircraft. Apparently pointing out ads (what few there are) isn't enough, I have to show sales, but online ads (what few there are) disappear as soon as the aircraft is sold.

Does VAF keep a database or record of sales prices in the ads?
If not, how does one get RV values in a reasonable fashion?
 
That I purchased for $50k in 2016 is now worth $141k because I added a Garmin GTX345.

Far be it from me to advise anyone to break the law or anything, but maybe they really didn't need to know about this minor addition to aircraft?
 
“Sometimes living in a trailer has its advantages.”

When I heard that line 50yr ago, I didn’t understand why someone would live in one of those. I thought that was a good thing till I realized that it really depends on your goals. A person wishing to reduce his tax liability needed the trailer. For some reason, that feller always had nice 4wheelers and bass boats and other stuff. Go figure.
I was renting an old farm house years ago and a tornado hit it(yes I was home). The guy didn't have insurance on it and it was tore up pretty bad, so I bought it cheap and paid it off quick. The inside has been gutted and is like new but I've intentionally yet to finish the exterior and have left the remnants of the old barn looking like h3ll. Reason being the taxes are dirt cheap for 2.5 acres in the country because of how it looks, and I'm ok with that as long as the taxes are low. I also drive used cars because I have an RV7A dream. Maybe about the time I need to finance the engine I'll think about improving the exterior of the house.

It's just ridiculous in the OP's case how these assessors get the numbers they do and even more so their unwillingness to have another look. The problem seems to be a lack of standardized procedures for the assessor and especially a lack of comparables'. I work for a large insurance company and on the auto side there are usually many many comps to come to a "reasonable" value. In the homebuilt aircraft world the pool seems much smaller and I would imagine much more difficult. BUT, the guy in your case doesn't seem "reasonable".
I don't want to break forum rules discussing other organizations but I wonder if contacting some of the aviation organizations that represent pilots/general aviation can offer any suggestions.
 
It was in Washington state but on one airplane decades ago I went into the state accessors office and talked to a state employee, showed them purchase price on bill of sale (factory plane) and they went with that. You are in California? Oh. How did they know you added a box in the panel? The good news RV's have inflated in value (with everything). The bad new is everything has inflated in price along with tax....
 
California tried that with me also. I challenged it and asked the appraiser to look at the airplane. He came out, I told him I worked at a aircraft parts distributor and everything in the panel is used. Then pointed out all the runs in the paint. He lowered lt. when three of us finished the -10 we used the first letter of our last names. He would never have found another one.
 
You are in California? Oh. How did they know you added a box in the panel?

Because every year, at least in the counties I know about, you have to fill out a form noting any equipment added or removed. (That's kind of what I was alluding to earlier). I guess that change triggered a re-appraisal in his county. Should be able to file an appeal, provide documentation and get it restored to earlier value or thereabouts, but it may well involve having to show up in person for a hearing if he can't get them to come out and look at the plane in the hangar.
 
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