(From Mothership) NOTICE TO CALIFORNIA RESIDENTS ? SALES TAX COLLECTION

I wonder how this came about. Anybody know?

Nope, but I'm glad my kit is already on the truck.

Well ****

I assume this includes engines and props too?

Surprised it took this long.

Seems all the states are cooperating with each other to get that revenue.
The internet spurred a lot of it.

It will be on everything Van?s sells.

For those in California who previously received kits prior to this, you do realize you still owe the state the sales tax for your kit. You?re supposed to report it when you receive it or when you do your tax return. If you don?t it will catch up with you when you register the plane and get an ?N? number.

Won’t be long till all states follow. The use tax honor system most states have has never worked. For airplanes, Tennessee gets you when you register the plane.

Just one more reason to move to Oregon or Montana!

Or Delaware! No sales tax on anything!

Wisconsin

Wisconsin has sales tax, but NOT on aircraft parts purchased after July 1, 2014.

Thus, the TAXES due upon registering my RV7 was almost nothing. State REGISTRATION was a one time $50 payment.

The climate sucks this time of year, but the taxes and registration in this area can't be beat.

In a post life I have implemented local sales tax collection programs. It is a major pain in the butt! Partly because the rates are always subject to change and your ZIP code does not always correlate to the municipality that is demanding sales tax based on your street address.

The other challenge is that sales changes by jurisdiction. Some states can have one rate, counties another, and municipalities (cities) yet another. For example, you can have a 4% sales tax, 2% county tax, and 1% city sales tax totaling 7%. Of course, each taxing jurisdiction can and do change the taxes at will. Implementing tax collection software is expensive and requires a subscription to a service that provides tax updates on a monthly basis. This is just another cost companies that provide nation wide retail services such as Van's, Aircraft Spruce, etc. must deal with. It is one of the most complex things an organization can deal with.

I wish Van's the best of luck implementing a sales tax collection routine. I do wish they could charge the state of California for the considerable cost of implementing the appropriate collection routines to their system(s)!

Unfortunately this is going to become more and more common with all online sales. the pertinent supreme court case is South Dakota v. Wayfair.

Essentially before this case a seller had to have a physical location in a given state to be required to collect sales tax. This case set the precedent that the states can force merchants to collect sales tax simply by having enough sales in that state. South Dakota used $100,000 or 200 transactions which many states have copied, you can find your state here to see where they currently stand https://www.avalara.com/us/en/learn/sales-tax/south-dakota-wayfair.html. I would expect most states that collect sales tax to have similar rules in the next year or two; thereby ending our "tax-free" internet purchases.

To circle back to aviation, if your state collects a use tax when you finish you'll likely be able to deduct the sales tax paid previously so keep your records. Also, as noted above, some states may specifically exempt aircraft parts from sales tax so check your laws and watch your invoices.

upperdeck said:

Wisconsin has sales tax, but NOT on aircraft parts purchased after July 1, 2014.

Thus, the TAXES due upon registering my RV7 was almost nothing. State REGISTRATION was a one time $50 payment.

The climate sucks this time of year, but the taxes and registration in this area can't be beat.

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I believe Oklahoma is the same. Sales/use taxes on internet sales but not on aircraft parts.