Van's Air Force
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Personal Airplane Property Tax / Use / Sales Tax
- Thread starter N941WR
- Start date
I'm not a lawyer, nor the taxman, but to me I read that 'exclusively' as 'every single hour on that plane has been logged as dual'. You will have very, very hard time convincing the taxman, that every flight with your wife was a dual given/received even if both of you write it down in your logbooks. Especially when her will show substantially more than 40h total.
DakotaHawk
Well Known Member
Bill of Sale
Van's provides a bill of sale, but they do NOT list a sales price on the BOS. The purpose of Van's bill of sale is to identify (for the FAA) the serial number assigned to your kit by Van's. The bill of sale is used only to register your RV with the FAA and has nothing to do with taxes (think of the bill of sale as the "title" to your kit).
You declare your own value for taxing purposes. For example, here in Washington, I wrote a letter to the Washington Department of Revenue which itemized all of the major purchases. I listed the slow-build cost of the kit, the engine, and some of the panel. I also made a declaration that other items, such as interior, paint, and avionics purchased in-state for which taxes had already been paid. I concluded the letter by stating the total taxable value of the various parts and the address that the plane would first enter service (the taxes vary by location). I brought the letter and my checkbook to the Dept of Revenue, they added up the figures that I supplied, and told me how much to write the check for. They then supplied me with a "Certificate of Use Tax Paid", which I supplied to the Washington State Department of Licensing, paid my $35 annual Use tax, and I'm all legal.
Different states deal with this differently. For example, you may pay based on the Trade-a-Plane value of your RV. I think the important part is to pay the tax before they come looking for you. When they find you, they'll probably just tell you how much to write the check for, and it's going to be at a value that they set, with penalties and fines. If you go to them first, you have more control over the final price.
Van's provides a bill of sale, but they do NOT list a sales price on the BOS. The purpose of Van's bill of sale is to identify (for the FAA) the serial number assigned to your kit by Van's. The bill of sale is used only to register your RV with the FAA and has nothing to do with taxes (think of the bill of sale as the "title" to your kit).
You declare your own value for taxing purposes. For example, here in Washington, I wrote a letter to the Washington Department of Revenue which itemized all of the major purchases. I listed the slow-build cost of the kit, the engine, and some of the panel. I also made a declaration that other items, such as interior, paint, and avionics purchased in-state for which taxes had already been paid. I concluded the letter by stating the total taxable value of the various parts and the address that the plane would first enter service (the taxes vary by location). I brought the letter and my checkbook to the Dept of Revenue, they added up the figures that I supplied, and told me how much to write the check for. They then supplied me with a "Certificate of Use Tax Paid", which I supplied to the Washington State Department of Licensing, paid my $35 annual Use tax, and I'm all legal.
Different states deal with this differently. For example, you may pay based on the Trade-a-Plane value of your RV. I think the important part is to pay the tax before they come looking for you. When they find you, they'll probably just tell you how much to write the check for, and it's going to be at a value that they set, with penalties and fines. If you go to them first, you have more control over the final price.
Every coin has two sides -
and the other side of this coin is slightly off topic. Lots of complaints about paying taxes and comparisons of this state vs that. We applaud the lack of taxes on Internet purchases and lament the taxes when purchased locally. As a computer network consultant (15yrs) in AZ, it is worth mentioning the false perception that local businesses compete for your dollars against a 'tax free' Internet vendor. "Use tax" is a way to level the playing field. When one of my customers compared my 'local' price against a 'tax free' Internet computer, I pointed out that as an ethical businessman he would be compelled to comply with the Use Tax filing requirement. He would also be paying shipping. In the end, the difference was minor and we got the deal (AZ got the tax.)
Every state needs X $'s of revenue to operate and some combine a lot of fees and taxes on specific 'uses' and participation in various sectors of the economy, while others collect a heavy property tax and have low 'fees' for other sectors. AZ taxes the last drop from tourists (it's the Snowbird capital of the US), rental cars, hotels, and travel industry fees. NV is income tax free because of the casino revenue.
When registering with AZ Dept of Aviation, I expect to pay a sizable one-time 'use tax' on the RV-6A 'parts & pieces' - purchased from vendors, but be exempt from 'second hand' parts such as the used Lycoming 360. There is no sales tax if/when it is sold to another individual in the future. There is a small annual 'sticker' fee, too. [This is my understanding for AZ, although it differs from a previous post on this thread.] They're now talking about a 'temporary' (3 yrs) sales tax increase of 1% now to make up for the lack of tourists, and I'm anxious about completion in that period.
What hurts is not always the price of the tax, but the value of the product/services received. AZ 'swept' the funds from all the departments (including DOA) to make ends meet in 2009. Taxes and fees for aviation will not be applied to aviation benefits for awhile.
and the other side of this coin is slightly off topic. Lots of complaints about paying taxes and comparisons of this state vs that. We applaud the lack of taxes on Internet purchases and lament the taxes when purchased locally. As a computer network consultant (15yrs) in AZ, it is worth mentioning the false perception that local businesses compete for your dollars against a 'tax free' Internet vendor. "Use tax" is a way to level the playing field. When one of my customers compared my 'local' price against a 'tax free' Internet computer, I pointed out that as an ethical businessman he would be compelled to comply with the Use Tax filing requirement. He would also be paying shipping. In the end, the difference was minor and we got the deal (AZ got the tax.)
Every state needs X $'s of revenue to operate and some combine a lot of fees and taxes on specific 'uses' and participation in various sectors of the economy, while others collect a heavy property tax and have low 'fees' for other sectors. AZ taxes the last drop from tourists (it's the Snowbird capital of the US), rental cars, hotels, and travel industry fees. NV is income tax free because of the casino revenue.
When registering with AZ Dept of Aviation, I expect to pay a sizable one-time 'use tax' on the RV-6A 'parts & pieces' - purchased from vendors, but be exempt from 'second hand' parts such as the used Lycoming 360. There is no sales tax if/when it is sold to another individual in the future. There is a small annual 'sticker' fee, too. [This is my understanding for AZ, although it differs from a previous post on this thread.] They're now talking about a 'temporary' (3 yrs) sales tax increase of 1% now to make up for the lack of tourists, and I'm anxious about completion in that period.
What hurts is not always the price of the tax, but the value of the product/services received. AZ 'swept' the funds from all the departments (including DOA) to make ends meet in 2009. Taxes and fees for aviation will not be applied to aviation benefits for awhile.
Lemmingman
Well Known Member
Arkansas state tax on RV and other homebuilts...
Ok, so you live in the Natural State and want to know what the tax situation is for building an RV. I found out today.
Basically the state does not require you to pay sales tax on the kit/engine/avionics until after the aircraft is airworthy and receives its FAA pink slip. From that day you have 30-days to pay sales tax on components that have not been purchased in Arkansas. Your local state auditors office is responsible for collection.
Now, your county is a different story. Your friendly neighborhood tax assessor may want to know about your kit components and engine prior to airworthiness. In Benton County I now have to pay personal property taxes on my empennage.
Ok, so you live in the Natural State and want to know what the tax situation is for building an RV. I found out today.
Basically the state does not require you to pay sales tax on the kit/engine/avionics until after the aircraft is airworthy and receives its FAA pink slip. From that day you have 30-days to pay sales tax on components that have not been purchased in Arkansas. Your local state auditors office is responsible for collection.
Now, your county is a different story. Your friendly neighborhood tax assessor may want to know about your kit components and engine prior to airworthiness. In Benton County I now have to pay personal property taxes on my empennage.
Expect 1%.........
EDIT....... WOW!! that post is over 12 years old!!!!! That's what I get for drinking beer and operating a computer.
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Connecticut
..Has a 6% sales tax on everything, including aircraft. I paid the tax as I purchased each kit, each time sending a cover letter informing them that this S/N kit would eventually become FAA Registration N924RV (Reserved). When the registration became active, I got the 'Your guilty of not paying the sales tax" letter, and had to re-send them all the previous correspondence. I've since received the same letter again! This time I accused them of not knowing where my tax records were, and to check their own records! It has worked so far....
Now, with the FAA requiring re-registration of all aircraft, I'm expecting to see the "Your Guilty.." letter again.
Out new Governor here in CT has proposed a new property tax on all "Vessels", including aircraft. It will be an annual 2% Property tax based on 70% of the assessed value. Who know what they will assess a home built at. We're fighting this one tooth & nail as it will kill GA in CT......
..Has a 6% sales tax on everything, including aircraft. I paid the tax as I purchased each kit, each time sending a cover letter informing them that this S/N kit would eventually become FAA Registration N924RV (Reserved). When the registration became active, I got the 'Your guilty of not paying the sales tax" letter, and had to re-send them all the previous correspondence. I've since received the same letter again! This time I accused them of not knowing where my tax records were, and to check their own records! It has worked so far....
Now, with the FAA requiring re-registration of all aircraft, I'm expecting to see the "Your Guilty.." letter again.
Out new Governor here in CT has proposed a new property tax on all "Vessels", including aircraft. It will be an annual 2% Property tax based on 70% of the assessed value. Who know what they will assess a home built at. We're fighting this one tooth & nail as it will kill GA in CT......
denbobp
Well Known Member
California tax implications
Is there any guidance for a newly purchased kit brought into California? Does your usage fees start when you receive your tail number? Do you pay taxes on it as a kit or as an airplane subject to a county's interpretation of what they want to tax?
Is there any guidance for a newly purchased kit brought into California? Does your usage fees start when you receive your tail number? Do you pay taxes on it as a kit or as an airplane subject to a county's interpretation of what they want to tax?
rv9av8tr
Well Known Member
CA airplane taxes....
Your fight may vary from county to county, but reserving an N number won't commit you to property taxes, but actually registering it will raise a red flag for the tax man. I actually ran into this when I built my Long-EZ in CA. Santa Barbara Co sent me a property tax bill after I got my real FAA registration, even though I had about a year to go before applying for the A/W cert. I wrote the county back and explained the situation. (It's a box of parts until the FAA issues the A/W Cert). That was 25 yrs ago.... and honestly, I don't recall if they let me off the hook or not.... (I'm thinking not).
My advise is, it only takes 3-4 wks to get your actual registration papers from OK City.... reserve your number early if you want a special number, but don't register the plane until a couple months before you anticipate first flight.
Your fight may vary from county to county, but reserving an N number won't commit you to property taxes, but actually registering it will raise a red flag for the tax man. I actually ran into this when I built my Long-EZ in CA. Santa Barbara Co sent me a property tax bill after I got my real FAA registration, even though I had about a year to go before applying for the A/W cert. I wrote the county back and explained the situation. (It's a box of parts until the FAA issues the A/W Cert). That was 25 yrs ago.... and honestly, I don't recall if they let me off the hook or not.... (I'm thinking not).
My advise is, it only takes 3-4 wks to get your actual registration papers from OK City.... reserve your number early if you want a special number, but don't register the plane until a couple months before you anticipate first flight.
scsmith
Well Known Member
Use tax and property tax
If you buy the kit out of state, like perhaps from Oregon, you will pay use tax (sales tax) as part of the final sales tax on your stated cost of building the airplane. Usually, when you register it, you will get a form to tell them how much you spent. You can adjust that for purchases that were in-state and already taxed (like anything from ACS). What I did was pay the sales tax on each of the major components in the year I bought them on my CA 540 income tax form (there's a place to do it). This was pretty convenient, and apparently it was obvious to the state board of equalization that that is what I did, because they didn't even bother to ask me about it when I registered the airplane.
Property tax is paid to the county, and won't start until you have a completed airplane, parked somewhere like an airport on the official tax assessment date ( I think it is March 1 in my county). You will get a form from the county asking you to supply information that will help them assess the value.
If you buy the kit out of state, like perhaps from Oregon, you will pay use tax (sales tax) as part of the final sales tax on your stated cost of building the airplane. Usually, when you register it, you will get a form to tell them how much you spent. You can adjust that for purchases that were in-state and already taxed (like anything from ACS). What I did was pay the sales tax on each of the major components in the year I bought them on my CA 540 income tax form (there's a place to do it). This was pretty convenient, and apparently it was obvious to the state board of equalization that that is what I did, because they didn't even bother to ask me about it when I registered the airplane.
Property tax is paid to the county, and won't start until you have a completed airplane, parked somewhere like an airport on the official tax assessment date ( I think it is March 1 in my county). You will get a form from the county asking you to supply information that will help them assess the value.
erich weaver
Well Known Member
There are two separate taxes that you are subject to in CA. The use tax is essentially a sales tax - a one-time tax based on the purchase price. Some folks opt to pay this as they go; that is, pay incrementally as they buy the kit in stages. Others have taken a wait and see approach, waiting for the state to send them a bill. My understanding is that there is a 2 year statute of limitations on this during which the state must request payment.
The county in which the plane is based will want to collect property tax every year based on what they feel is the value of the plane. Hope for the best on this, and be prepared to fight their assessed value if it is out of line. In Santa Barbara county, they also send out a form every year asking you what new equipment has been installed in the plane, so that they can adjust the vale accordingly.
Hope this helps
Erich
The county in which the plane is based will want to collect property tax every year based on what they feel is the value of the plane. Hope for the best on this, and be prepared to fight their assessed value if it is out of line. In Santa Barbara county, they also send out a form every year asking you what new equipment has been installed in the plane, so that they can adjust the vale accordingly.
Hope this helps
Erich
bruceh
Well Known Member
Last year I paid the use tax on the tail and wing kits on my CA540. According to the information on the Board of Equalization web site you can pay them directly by 1/31, or pay on your CA540 by 4/15. Sometime around May, I get a check from the State basically refunding me the Use Tax amount. A month later I get a letter from the BofE stating that my Use Tax never got paid, and they dinged me for interest and a late fee. Stupid government agencies! The two agencies did not follow the letter of the rules they plainly state on their public information sites. Long story short, I paid the use tax late, along with the penalty. This year I paid the BofE directly before 1/31 on the use tax for the fuselage.
Neal@F14
Well Known Member
Does California hit out-of-state purchasers of kit pieces/projects with any sales/use taxes?
For example, I'm in Texas, and might wish to buy a substantially complete, 2nd-hand RV project (but still very far from a complete aircraft, and no FAA paperwork begun yet) from someone who lives in, and has the project in California, and take it back to Texas... will the State of CA try to levy any taxes on me for it?
For example, I'm in Texas, and might wish to buy a substantially complete, 2nd-hand RV project (but still very far from a complete aircraft, and no FAA paperwork begun yet) from someone who lives in, and has the project in California, and take it back to Texas... will the State of CA try to levy any taxes on me for it?
erich weaver
Well Known Member
Nah, you should be safe from California. Don't know about Texas though.
Erich
Erich
Neal@F14
Well Known Member
I know that Texas will hit me up for use tax once a completed aircraft is finally registered with the FAA. On the other hand, if I buy an already complete/registered airplane in Texas, and it's being sold by an individual that qualifies as an "occasional sale" then it's exempt completely from Texas sales/use tax.
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I know that Texas will hit me up for use tax once a completed aircraft is finally registered with the FAA. On the other hand, if I buy an already complete/registered airplane in Texas, and it's being sold by an individual that qualifies as an "occasional sale" then it's exempt completely from Texas sales/use tax.
It sounds like Texas is one of the few better places to live. They don't try to confiscate all of your money.
Jack Tyler
Well Known Member
Neal, has the seller of the RV project paid any incremental sales tax on the kits already purchased? If so, be sure to check directly with your local taxing authority on how they assess use tax. In many states, credit is awarded on tax already paid for tangible personal property, even if to another state. But you'll need his records to prove payment...
Jack
Jack
AX-O
Well Known Member
Verified; you have to pay taxes on your RV in California!
This topic has been discussed on the forums before however; I never saw a definitive answer. I actually received a PM asking if I paid taxes on my new plane from a fellow VAF member. A week later he told me he did not have to pay. Well, it took a few months but California found me. I received form BOE-1169-P (S1F) Rev (6-10) from the State Board of Equalization Consumer Use Tax Section. I just paid almost 9% of my aircraft purchase price in taxes. They required that a Bill of Sale be included with the payment. So, if the plane will be in CA for longer than 6 months, you owe CA taxes. If you paid taxes in another state, you may owe CA the difference if your county has a higher tax percentage than the other state were you paid your original taxes. I hope this post helps someone in the future.
This topic has been discussed on the forums before however; I never saw a definitive answer. I actually received a PM asking if I paid taxes on my new plane from a fellow VAF member. A week later he told me he did not have to pay. Well, it took a few months but California found me. I received form BOE-1169-P (S1F) Rev (6-10) from the State Board of Equalization Consumer Use Tax Section. I just paid almost 9% of my aircraft purchase price in taxes. They required that a Bill of Sale be included with the payment. So, if the plane will be in CA for longer than 6 months, you owe CA taxes. If you paid taxes in another state, you may owe CA the difference if your county has a higher tax percentage than the other state were you paid your original taxes. I hope this post helps someone in the future.
A use tax in Texas?? Can you give me some reference on this. They started going after sales tax in '07. But there's no other tax on airplanes that I'm aware of.I know that Texas will hit me up for use tax once a completed aircraft is finally registered with the FAA. On the other hand, if I buy an already complete/registered airplane in Texas, and it's being sold by an individual that qualifies as an "occasional sale" then it's exempt completely from Texas sales/use tax.
But who knows - we've let so many people into Texas over the last few decades from other states that the taxation momentum is beginning to increase, "just like we used to do it back east" and "back up north".
Neal@F14
Well Known Member
If a Texas buyer buys the aircraft from a seller located in Texas, then it's called "sales tax". If a Texas buyer buys the aircraft from a seller located in another state and brings the aircraft into Texas as the aircraft's new home state, then it's called "use tax".
http://www.window.state.tx.us/taxinfo/taxpubs/tx94_168.pdf
or to view the document from Google Docs: http://docs.google.com/viewer?a=v&q...KUAT12&sig=AHIEtbRPLPgl7eg99UHSzf4XadJ2nKXnCw
http://www.window.state.tx.us/taxinfo/taxpubs/tx94_168.pdf
or to view the document from Google Docs: http://docs.google.com/viewer?a=v&q...KUAT12&sig=AHIEtbRPLPgl7eg99UHSzf4XadJ2nKXnCw
ronschreck
Well Known Member
North Carolina Tax
Bill,
In NC you only pay a county personnal property tax. This year I paid $172 on a stated value of $26,700 for my RV-8. Since I don't fly out of a public airport I might have gone on forever without the tax man knowing I owned an airplane. (Most county tax assessors require PUBLIC airport managers to report the N-numbers of every airplane on the property each year.) I decided not to risk having to pay back taxes, interest and fines if I was somehow found out, so I marched down to the county tax assessors office and presented a few receipts for major kit items (fuselage kit, engine core,etc.). There were three clerks at the assessor's office and I waited until the little old lady was available, turned on the charm and presented her with my small handful of receipts. She was pleased; I was relieved and the fear of back taxes, interest and fines is forever behind me.
Bill,
In NC you only pay a county personnal property tax. This year I paid $172 on a stated value of $26,700 for my RV-8. Since I don't fly out of a public airport I might have gone on forever without the tax man knowing I owned an airplane. (Most county tax assessors require PUBLIC airport managers to report the N-numbers of every airplane on the property each year.) I decided not to risk having to pay back taxes, interest and fines if I was somehow found out, so I marched down to the county tax assessors office and presented a few receipts for major kit items (fuselage kit, engine core,etc.). There were three clerks at the assessor's office and I waited until the little old lady was available, turned on the charm and presented her with my small handful of receipts. She was pleased; I was relieved and the fear of back taxes, interest and fines is forever behind me.
Flying Scotsman
Well Known Member
Louise Hose
Well Known Member
But who knows - we've let so many people into Texas over the last few decades.....
Hmm. In Colorado, the oft-repeated phrase (especially in the ski towns) is, "They've let so many people out of Texas over the last few decades that....."
Andre Kerstens
Member
When is PA use tax paid?
I'm bringing in a 7A to an airport in PA from DE where I live and build the plane. DE doesn't have sales tax, but I know PA has a use tax. When does this need to be paid? When the plane project is brought to the airport hangar or when it gets a N-number after registration? Also, do I use form REV-832 for the taxes or the standard use-tax form PA-1?
Are there any other aircraft taxes or fees in PA? Couldn't find anything else.
Thanks
Andre
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Finishing RV-7A
Almost done!
I'm bringing in a 7A to an airport in PA from DE where I live and build the plane. DE doesn't have sales tax, but I know PA has a use tax. When does this need to be paid? When the plane project is brought to the airport hangar or when it gets a N-number after registration? Also, do I use form REV-832 for the taxes or the standard use-tax form PA-1?
Are there any other aircraft taxes or fees in PA? Couldn't find anything else.
Thanks
Andre
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Finishing RV-7A
Almost done!
LUCKY DUCK! Sorta wish I was the one getting the 7A...uh, but not for the taxes (most likely)! Ok, your state IRS will have a department dealing with taxable aviation. You call them and they'll tell you where, what and when. You will have an online form you can open, print, fill out and whatever else it is you need to do. That's about all I can tell you. Uh, and don't wait for them to contact you or there'll be associated late fees
to go along with it. It may sound I'm with the IRS...rather I've researched my tail off on this, awaiting to be in your shoes....cheeers
Andre Kerstens
Member
Now this is interesting... Just got this in an email from AOPA Aviation eBrief:
http://www.smartbrief.com/servlet/A...36D-C6D6-459B-BEBE-E485E6E1287F&lmid=archives
The recovery for general aviation in central Pennsylvania is showing mixed results. The state recently eliminated a sales tax on fixed-wing aircraft, but fuel costs are still prohibitively high. "Like the economy, the numbers are showing a mixed picture along various indicators," said Dan Hubbard of the National Business Aviation Association.
This is the first time I hear about the sales tax on A/C being eliminated in PA. Is this true??? The newspaper article this points to (http://r.smartbrief.com/resp/dDdmCfbwocevussxmFAF) doesn't mention it. If it is true that would be perfect timing
Andre
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Finishing RV-7A
Almost done!
http://www.smartbrief.com/servlet/A...36D-C6D6-459B-BEBE-E485E6E1287F&lmid=archives
The recovery for general aviation in central Pennsylvania is showing mixed results. The state recently eliminated a sales tax on fixed-wing aircraft, but fuel costs are still prohibitively high. "Like the economy, the numbers are showing a mixed picture along various indicators," said Dan Hubbard of the National Business Aviation Association.
This is the first time I hear about the sales tax on A/C being eliminated in PA. Is this true??? The newspaper article this points to (http://r.smartbrief.com/resp/dDdmCfbwocevussxmFAF) doesn't mention it. If it is true that would be perfect timing
Andre
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Finishing RV-7A
Almost done!
Moving plane to WA
I'm thinking of moving my plane from OK to WA. The state dept of revenue information says credit is given for previous use tax paid in another state, so far so good...
But the rate up there is twice what I paid in OK.
Has anybody done this? Is use tax not an issue after owing the aircraft for a number of years prior to moving?
I'm thinking of moving my plane from OK to WA. The state dept of revenue information says credit is given for previous use tax paid in another state, so far so good...
But the rate up there is twice what I paid in OK.
Has anybody done this? Is use tax not an issue after owing the aircraft for a number of years prior to moving?
TN does not tax your Van's RV
My wife and I just bought a taxiway lot at Big South Fork Airpark to get away from California taxes. Low property tax, no earned income tax and no tax on my private aircraft.
It's a beautiful part of the country with conservative values and good, clean living. Plus, Tennessee is not bankrupt like California is!
We're gonna build a house, a hangar AND an RV-7!
Jim
My wife and I just bought a taxiway lot at Big South Fork Airpark to get away from California taxes. Low property tax, no earned income tax and no tax on my private aircraft.
It's a beautiful part of the country with conservative values and good, clean living. Plus, Tennessee is not bankrupt like California is!
We're gonna build a house, a hangar AND an RV-7!
Jim
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county appraisal
Lincoln County NC has appraised my 2010 fixed pitch unpainted RV-4 at $82,900.. you guys think they're willing to buy it for that?!
After calling and claiming it's worth more along the lines of 45k, they asked me for sales on similar models. Unsure how I'm supposed to find a similar year and equipped airplane.
Update
Good news for me. The county reduced my appraisal to 46k after writing a letter and including current RV-4 listings from the usual suspects (trade-a-plane, barnstormers and controller.)
Lincoln County NC has appraised my 2010 fixed pitch unpainted RV-4 at $82,900.. you guys think they're willing to buy it for that?!
After calling and claiming it's worth more along the lines of 45k, they asked me for sales on similar models. Unsure how I'm supposed to find a similar year and equipped airplane.
Update
Good news for me. The county reduced my appraisal to 46k after writing a letter and including current RV-4 listings from the usual suspects (trade-a-plane, barnstormers and controller.)
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Personal Airplane Property Tax / Use / Sales
Use Trade-a-Plane, Barnstormers, or any aviation pub with aircraft for sale and get a couple a three and show them to the assessor. You also might get an aircraft broker or your insurance broker to write you an appraisal for that serial numbered aircraft. I hope this info is of value. Dan
Use Trade-a-Plane, Barnstormers, or any aviation pub with aircraft for sale and get a couple a three and show them to the assessor. You also might get an aircraft broker or your insurance broker to write you an appraisal for that serial numbered aircraft. I hope this info is of value. Dan
Kyle Boatright
Well Known Member
You only find asking prices on TAP and other sites. Prices of aircraft which actually sell are often far lower. Over valued airplanes don't sell, regardless of what the owner invested or how much the owner wants for his pride and joy.
Your best bet might be to see if any similar aircraft have sold (or topped out) on eBay. That might offer better information than you could get elsewhere.
I think an RV4 was advertised on VAF for $30k recently, so that might be a useful data point.
Your best bet might be to see if any similar aircraft have sold (or topped out) on eBay. That might offer better information than you could get elsewhere.
I think an RV4 was advertised on VAF for $30k recently, so that might be a useful data point.
Value: If you have it insured for $45K that is usually a good starting point for discusions with the appraiser.
Use tax: This is a ploy by states to collect sales taxes on out of state purchases. If you are moving to the state most states do not charge use tax on personal property that you have owned for at least some period of time. That time varies state by state (3 months, 9 months?), call your new state and find out. You might have to delay moving your RV to its new home.
Use tax: This is a ploy by states to collect sales taxes on out of state purchases. If you are moving to the state most states do not charge use tax on personal property that you have owned for at least some period of time. That time varies state by state (3 months, 9 months?), call your new state and find out. You might have to delay moving your RV to its new home.
deek
Well Known Member
When you register your airplane with the FAA you have a choice on what to call your airplane. You may call it a Van's RV-10 or you can call it a John Smith Runabout; it's your choice. State and Counties know quite a bit about how to value a Van's RV-10, but it's likely they have no basis for establishing value on a John Smith Runabout - You get to tell them what it's worth and they are (most of the time) forced in to agreeing with something along the lines of what you suggest. CA is as tough as any and have a lot of questions on engine, avionics, interior, paint, etc... but many of our engines are not certified so you need not identify the origin, ie, IO-360-B1E. Same with uncertified avionics.
I learned this the hard way in '83 with homebuilt #1 but became smarter when registering the next 2 homebuilts with the FAA.
Just sayin'
I learned this the hard way in '83 with homebuilt #1 but became smarter when registering the next 2 homebuilts with the FAA.
Just sayin'
Flyingbeard
Active Member
Maryland Tax Info
Hi Guys,
I got the dreaded letter from the Comptroller of Maryland. It says there records do not indicate that Maryland’s 6% sales and use tax has been paid on my RV-8.
It gives me 30 days to respond and if I don’t, the Comptroller of Maryland will issue an estimated assessment against you as authorized under section 13-402 of the Tax General Article of the Annotated Code of Maryland.
The assessment will be based on the tax amount due of comparable sales of the same aircraft, utilizing both Barnstromers.com and Trade-a-Plane.com.
Plane was built and tested (phase 1) in Oregon and first brought to Maryland in April this year.
In the mean time Maryland’s Governor just signed SB-121, Pilots no longer have to pay 6% on parts and components.
I called the tax office and left a message and am waiting on a reply.
I will keep you all updated.
Hi Guys,
I got the dreaded letter from the Comptroller of Maryland. It says there records do not indicate that Maryland’s 6% sales and use tax has been paid on my RV-8.
It gives me 30 days to respond and if I don’t, the Comptroller of Maryland will issue an estimated assessment against you as authorized under section 13-402 of the Tax General Article of the Annotated Code of Maryland.
The assessment will be based on the tax amount due of comparable sales of the same aircraft, utilizing both Barnstromers.com and Trade-a-Plane.com.
Plane was built and tested (phase 1) in Oregon and first brought to Maryland in April this year.
In the mean time Maryland’s Governor just signed SB-121, Pilots no longer have to pay 6% on parts and components.
I called the tax office and left a message and am waiting on a reply.
I will keep you all updated.
bill.hutchison
Well Known Member
Please do. This is something I've kind been waiting on MD/VA to correspond with me on, but I haven't gotten anything in the mail yet. Wondering if I should just be proactive. My plane lives in MD but I live in VA.
dmattmul
Well Known Member
Florida Sales Tax on Aircraft Parts
Section 212.08(7)(rr) of the Florida state code:
(rr) Equipment used in aircraft repair and maintenance.—Replacement engines, parts, and equipment used in the repair or maintenance of qualified aircraft and aircraft of more than 2,000 pounds maximum certified takeoff weight, including rotary wing aircraft, are exempt from the tax imposed under this chapter if such parts or equipment are installed on such aircraft that is being repaired or maintained in this state.
I know there are a bunch of builders in Florida has anyone used this to pay their sales tax obligation? Isn't an RV14 just a collection of parts? Many states have this same wording in their code.
In addition this was posted on an attorney's web site:
SALES TAX ON AIRCRAFT PARTS AND REPAIRS IN FLORIDA
The general rule is aircraft parts are considered to be tangible personal property, which are subject to tax when purchased or used in Florida. Sections 212.02(19), 212.05, and 212.06, Florida Statutes (“F.S.”). However, the legislature has provided an exception to this general rule.
Specifically, parts used to repair an aircraft that is repaired or maintained in Florida are exempt from Florida sales and use taxes. Section 212.08(7)(rr), F.S. The key to this exemption is the aircraft must have a maximum certified takeoff weight of more than 2,000 pounds. Since labor charges are taxable when paired with an otherwise taxable repair, the legislature has also exempted the labor on these usually taxable repairs of aircraft with a maximum certified takeoff weight of more than 2,000 pounds. Section 212.08(7)(ee), F.S.
Naturally, the next question is how do you prove you are entitled to the exemption? The Florida Department of Revenue (“Department”) has published guidance that the tail number (or “N” number) as well as the maximum certified takeoff weight should be documented on the bill of sale, invoice, or other proof of sale. Whether you are a purchaser or a seller, please ensure you follow this direction by the Department. It is incredibly easy to do ahead of time instead of trying to piece it together afterwards during an audit.
Section 212.08(7)(rr) of the Florida state code:
(rr) Equipment used in aircraft repair and maintenance.—Replacement engines, parts, and equipment used in the repair or maintenance of qualified aircraft and aircraft of more than 2,000 pounds maximum certified takeoff weight, including rotary wing aircraft, are exempt from the tax imposed under this chapter if such parts or equipment are installed on such aircraft that is being repaired or maintained in this state.
I know there are a bunch of builders in Florida has anyone used this to pay their sales tax obligation? Isn't an RV14 just a collection of parts? Many states have this same wording in their code.
In addition this was posted on an attorney's web site:
SALES TAX ON AIRCRAFT PARTS AND REPAIRS IN FLORIDA
The general rule is aircraft parts are considered to be tangible personal property, which are subject to tax when purchased or used in Florida. Sections 212.02(19), 212.05, and 212.06, Florida Statutes (“F.S.”). However, the legislature has provided an exception to this general rule.
Specifically, parts used to repair an aircraft that is repaired or maintained in Florida are exempt from Florida sales and use taxes. Section 212.08(7)(rr), F.S. The key to this exemption is the aircraft must have a maximum certified takeoff weight of more than 2,000 pounds. Since labor charges are taxable when paired with an otherwise taxable repair, the legislature has also exempted the labor on these usually taxable repairs of aircraft with a maximum certified takeoff weight of more than 2,000 pounds. Section 212.08(7)(ee), F.S.
Naturally, the next question is how do you prove you are entitled to the exemption? The Florida Department of Revenue (“Department”) has published guidance that the tail number (or “N” number) as well as the maximum certified takeoff weight should be documented on the bill of sale, invoice, or other proof of sale. Whether you are a purchaser or a seller, please ensure you follow this direction by the Department. It is incredibly easy to do ahead of time instead of trying to piece it together afterwards during an audit.
gmcjetpilot
Well Known Member
Move to a state that does not have tax on planes.
Or do like the rich folks. Set up a LLC and base the plane in the no tax state. They do it all the time.
Or do like the rich folks. Set up a LLC and base the plane in the no tax state. They do it all the time.
Capflyer
Well Known Member
MD resident here. Unfortunately SB-121 only appears to exempt sales tax on parts to repair or upgrade aircraft, not the purchase of an aircraft or parts for a new aircraft. If you paid sales tax in Oregon then you would only owe MD the difference if there is any. No different than buying a car.
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bkc3921
Well Known Member
I agree..however..
As most of you can see, this thread started in 2005. It would be great if someone would filter through all this info, and make a "spreadsheet" by state specifically addressing this issue. Take all the latest info, compile and update as needed for quick reference. I would do it myself, but frankly, I would just goon it up.
As I am close to finishing my second RV (and looking to move out of Hellinois), this gets to be more and more of a concern. I'm not talking about a reference for tax EVASION..just tax AVOIDANCE. (One is legal..the other is not!).....Any computer savvy tax professionals/attorneys in the RV world willing to give this a try..? If so, thanks in advance!
Move to a state that does not have tax on planes.
Or do like the rich folks. Set up a LLC and base the plane in the no tax state. They do it all the time.
As most of you can see, this thread started in 2005. It would be great if someone would filter through all this info, and make a "spreadsheet" by state specifically addressing this issue. Take all the latest info, compile and update as needed for quick reference. I would do it myself, but frankly, I would just goon it up.
As I am close to finishing my second RV (and looking to move out of Hellinois), this gets to be more and more of a concern. I'm not talking about a reference for tax EVASION..just tax AVOIDANCE. (One is legal..the other is not!).....Any computer savvy tax professionals/attorneys in the RV world willing to give this a try..? If so, thanks in advance!
steveandmaysrocket
Member
I am not advocating you look into registering your aircraft to an LLC in Delaware...however it "seems" than many GA owners do this for some odd reason. lots of googled info out there on Delaware and Nevada and Wyoming. They each have their own benefits.
it costs very little to administrate an LLC, though there are many more reasons to take this step from a liability limiting perspective. Check your State's tax rules on leased aircraft and you may find that you don't pay taxes on leased items at all.
where there is a will to avoid certain taxes (particularly stupid ones) even if the $$ stayed neutral, some feel better not seeing them squandered frivolously without putting anything back into aviation.
I hope those hints help a bit...
S.
it costs very little to administrate an LLC, though there are many more reasons to take this step from a liability limiting perspective. Check your State's tax rules on leased aircraft and you may find that you don't pay taxes on leased items at all.
where there is a will to avoid certain taxes (particularly stupid ones) even if the $$ stayed neutral, some feel better not seeing them squandered frivolously without putting anything back into aviation.
I hope those hints help a bit...
S.
The only catch on the Delaware LLC is that taxes are still due where the aircraft is based. People with multiple residences or larger aircraft that are always on the move may benefit from it but in the end for the average guy the taxes are still owed. It might help hide the aircraft from the tax man but now you are getting away from tax avoidance and into fraud.
dmattmul
Well Known Member
Sales tax on “parts”
Well Capflyer is probably correct if not close. Checking with an attorney who specializes with aircraft the tax exemption carries the weight of proving you are replacing parts. Until the airplane is given airplane status you are not replacing anything, yet. Of course you could purchase a worn out engine and replace that with a new one or even your blank panel could be replaced with real avionics. I guess my paint job in the future labor and paint would be considered replacement parts. Time to gather receipts and start paying the tax man. With current prices on a 14 my guess is I should come up with the receipts rather than the man using market prices.
Well Capflyer is probably correct if not close. Checking with an attorney who specializes with aircraft the tax exemption carries the weight of proving you are replacing parts. Until the airplane is given airplane status you are not replacing anything, yet. Of course you could purchase a worn out engine and replace that with a new one or even your blank panel could be replaced with real avionics. I guess my paint job in the future labor and paint would be considered replacement parts. Time to gather receipts and start paying the tax man. With current prices on a 14 my guess is I should come up with the receipts rather than the man using market prices.
