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Sales Tax in TN

avi8tor50

Well Known Member
This question goes out to all of you business head or accounting and tax experts. I built my 9A in KY and originally registered the aircraft in KY. Per the new FAA rule I will need to re-register in January. I now reside in TN and so would be thinking or re-registering to my TN address. Does anyone know if I will be subject to a TN sales tax? My concern is that when I re-register the FAA will send the info to TN and I will receive a bill.
Any info would be appreciated.

Peter K
9A 415 hrs
 
If you paid tax in KY most likely you are OK.

If you did not, most likely they will find you and tell you that you owe em Use Tax.

TN is one of those states that goes after aircraft sales/use tax with a vengeance.
 
Sales Tax

Have you considered registering it in a Delaware Corporation? You will have to hire an agent and will have a Delaware address and all mail goes there and then they forward it to you.
 
Be careful with Delaware, I registered my 4 there which was bought in Florida, Florida said since Delaware has no state tax I was to pay Florida sales use tax. Even though the airplane was outbid the state within a day. I'll never buy another airplane from Florida,
 
You need to talk to an accountant. Every state is different. You are right though, alot of them are very aggressive.
 
Same line of questioning

Besides obvious sales tax when purchasing the kit from vans, what tax are you referring to?
 
Have you considered registering it in a Delaware Corporation? You will have to hire an agent and will have a Delaware address and all mail goes there and then they forward it to you.

At least in California, that plan won't work. The tax liability is based on where the airplane is "habitually based," not where the owner, real or corporation, resides. To avoid the tax you would have to prove that the airplane was based in Delaware by showing hangar/tiedown and fuel bills.

John Clark ATP, CFI
FAAST Team Representative
EAA Flight Advisor
RV8 N18U "Sunshine"
KSBA
 
Every state is different, but generally speaking they don't charge sales/use tax on things you already owned when you moved there. They aren't charging you sales tax on your car or clothes, are they?

However, if they are like CA, you can expect an annual property tax bill.
 
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Be careful with Delaware, I registered my 4 there which was bought in Florida, Florida said since Delaware has no state tax I was to pay Florida sales use tax. Even though the airplane was outbid the state within a day. I'll never buy another airplane from Florida,

If you bought a Florida plane the sales tax was already paid by that owner,They have no clam to a Pa resident with a Delaware registration.Do you also own property in Florida? I don't see where Florida has any standing.
 
The transaction took place in Florida, just as if you went into a Walmart there, you'd pay sales tax on whatever you bought in the store. Buyer should have had the seller fly it out of state before signing papers.
 
The transaction took place in Florida, just as if you went into a Walmart there, you'd pay sales tax on whatever you bought in the store. Buyer should have had the seller fly it out of state before signing papers.

That's a good idea about flying it out of there first I'll keep that in mind. Apparently they search n numbers and anything that shows up sold they get the new owners info from Oklahoma city and try and collect, only way you are a exempt is if you buy from A licensed dealer in fla, they also search ramps and check n numbers against there tax rolls to see who paid. Crummy move if you ask me!
 
King

Make me king and I will fire all of those tax people. Then the state wont need so much money
 
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