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  #1  
Old 04-15-2021, 01:30 PM
dreed dreed is offline
 
Join Date: Nov 2016
Location: Camas, WA
Posts: 495
Default Another Use tax thread

Sorry, I searched but wanted to see what value folks reported as value for paying use tax to their state.

I have receipts for most of the big things (emp, fuse, wings, finish, FWF, instrument, engine, prop, etc.).

Wondering how much documentation you all needed for your state- I am in WA state if any of you from WA dealt with this in the past.

Thanks-
dan
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Dan Reed
Camas, WA
RV-7A - N167DR
First flight 5/25/2021
Phase 1
2018/19/20 VAF dues paid
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  #2  
Old 04-15-2021, 02:09 PM
danny danny is offline
 
Join Date: Jul 2005
Location: puyallup, wa
Posts: 121
Default Taxes!!!!

I'm going thru the process now. I spoke with Kenneth Hare from Washington dor and he gave me instructions for filing. I'm getting all my receipts and invoices together that didn't have sales tax taken out and putting them in pdf form. This gets emailed to the state and they will send me a tax bill.
I have the email address at home if you would like it. I also have the phone number.
danny
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  #3  
Old 04-15-2021, 02:35 PM
dreed dreed is offline
 
Join Date: Nov 2016
Location: Camas, WA
Posts: 495
Default

Thanks Danny-

If you don't mind it can't hurt. not a fun check to write!

dan
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Dan Reed
Camas, WA
RV-7A - N167DR
First flight 5/25/2021
Phase 1
2018/19/20 VAF dues paid
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  #4  
Old 04-15-2021, 05:57 PM
abwaldal@gmail.com abwaldal@gmail.com is offline
 
Join Date: Jan 2017
Location: Battle Ground WA
Posts: 208
Default

Afternoon Dan
I live in Washington State as well and built houses for 41 years. Done now.
You're not getting audited per say but very similar. Hopefully the Covid thing will help.
We used to get audited about every 3-4 years on use (sales) tax and every 5 years by the feds. We found that if the receipt doesn't say sales tax xxx and the rate you sometimes get to pay twice. Fun. Your receipt is the only thing they have to go on and it may be a fake showing the tax paid. He He. How are they going to know?
We had to get an attorney involved at least three times that I remember cause the auditor thought he had us by the short hairs.
I can tell you one thing is that the auditor really has no clue as to what it takes to make an airplane. Or a house for that matter.
Hit the high areas and a few of the cheap ones and you'll be fine. Dicker as to the late fees they will want to charge you. And they can get crazy with the late fees. Plead stupid if you have to.
If it is an in person audit: DO NOT SAY ANYTHING OTHER THAN WHAT IS ASKED. And do not offer anything not asked for.
In other words. Keep your mouth shut with super glue if you have to. They are not your friends. And smile!
By the way I don't mind paying my fair share of taxes either.
Good luck, Been there, done that, Art
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  #5  
Old 04-15-2021, 09:36 PM
SoupSandwich SoupSandwich is offline
 
Join Date: Apr 2021
Location: Sioux Falls, SD
Posts: 5
Default

Interesting thread, so I assume you have to pay a tax on the plane when you register it? I know in my state, when I register it, I expect that I will pay the "sales tax" that is charged when I register the plane, same as any other vehicle I would register... Figure that tax will be based on the total cost that I spent to build it as my purchase price.

If you have this, and you pay tax on the pieces as you build it, does that amount get deducted?

I guess I just figured I'd pay the tax when it's done and I register. I could be very wrong about that and I'll be sure to read up on it a bit more.
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  #6  
Old 04-15-2021, 10:31 PM
No_0ne No_0ne is offline
 
Join Date: Jan 2016
Location: Martin, Tn
Posts: 82
Default

Quote:
Originally Posted by SoupSandwich View Post
...
If you have this, and you pay tax on the pieces as you build it, does that amount get deducted?

I guess I just figured I'd pay the tax when it's done and I register. I could be very wrong about that and I'll be sure to read up on it a bit more.
Depends on your state, but I suspect that most will allow you to deduct any sales tax paid (that you can show receipts for) when you're assessed the use, or sales tax on your plane. I know that's the way that Tennessee does it, as well as others.
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  #7  
Old 04-16-2021, 12:12 AM
BobTurner BobTurner is offline
 
Join Date: Dec 2011
Location: Livermore, CA
Posts: 7,448
Default

Quote:
Originally Posted by SoupSandwich View Post
Interesting thread, so I assume you have to pay a tax on the plane when you register it? I know in my state, when I register it, I expect that I will pay the "sales tax" that is charged when I register the plane, same as any other vehicle I would register... Figure that tax will be based on the total cost that I spent to build it as my purchase price.

If you have this, and you pay tax on the pieces as you build it, does that amount get deducted?

I guess I just figured I'd pay the tax when it's done and I register. I could be very wrong about that and I'll be sure to read up on it a bit more.
Most states that have a sales tax also have a ‘use tax’. The use tax is just an end run around the constitution, which forbids states from imposing taxes on interstate commerce. You generally pay one or the other, not both. Here in CA the sales or use tax is due no later than April 15 following the year of the purchase. You may be subject to penalties for late payment. You need to check with your state about taxes and when they are due. Also, some states are now requiring Vans to withhold your taxes directly on your bill. Make sure you don’t pay twice.
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  #8  
Old 04-16-2021, 09:29 AM
Snoho3 Snoho3 is offline
 
Join Date: Dec 2012
Location: Snohomish, WA
Posts: 157
Default In the same boat here in WA...

Dan,

Finished my RV-9A (mostly) and am currently flying. I've been putting off contacting the state (WA) to register as it will be a $$ painful event. But I was unaware of any guidance on deadlines or penalties for not meeting same. Can you share what you've found out? At what point in the build does the clock start ticking? I'm guessing perhaps when we receive an Airworthiness Certificate? I've still got some gear fairing work to do, plus paint, so I don't consider the aircraft actually 'finished'.

Thanks for any insight.
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Snoho3
RV-9A - Flying as of 12-20-2020
2021 Dues+ Paid and worth it.
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  #9  
Old 04-17-2021, 10:39 AM
SoupSandwich SoupSandwich is offline
 
Join Date: Apr 2021
Location: Sioux Falls, SD
Posts: 5
Default

Quote:
Originally Posted by Snoho3 View Post
Dan,

Finished my RV-9A (mostly) and am currently flying. I've been putting off contacting the state (WA) to register as it will be a $$ painful event. But I was unaware of any guidance on deadlines or penalties for not meeting same. Can you share what you've found out? At what point in the build does the clock start ticking? I'm guessing perhaps when we receive an Airworthiness Certificate? I've still got some gear fairing work to do, plus paint, so I don't consider the aircraft actually 'finished'.

Thanks for any insight.
My state requires aircraft registration for planes that are home based in the state, same as registering a car... That's also when they make sure taxes are up to date if they would be owed. Thankfully we don't have property taxes on aircraft or vehicles like some states, and our annual registration fee is very reasonable.
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