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Property Tax in Georgia

steve murray

steve murray

Well Known Member
Hapy New Year, first business day of the year and I just got a tax notice from the city of Gwinnett. Can anybody give me an idea of the tax bill I should budget for? Is there also a State Tax?

Steve
 
I got the same bill. They sure were quick this year.

In Gwinnett, they tax at the same rate as a car, I think. I forget what the bill was on our old Mooney, but it was like $350 or something last year.

Hint...if your plane has something wrong with it, they tax it at a lower rate. Having a 40 year old plane, I usually have something that needs to be repaired, so I send the estimate with the tax return.
 
steve murray said:
Hapy New Year, first business day of the year and I just got a tax notice from the city of Gwinnett. Can anybody give me an idea of the tax bill I should budget for? Is there also a State Tax?

Steve
Click to expand...


Steve,

I assume this is a property tax assessment, if so, read below. If it is a sales/use tax assessment, skip down to the bottom of the page.

Property Tax:

What is the local millage rate, what aircraft do you have, and what is its status (tail kit finished, nearly complete airframe with 747 style panel, flying aircraft, etc)?

In Georgia, the property tax is based on 40% of the assessed value of the property multiplied by the millage rate.

My airplane is taxed in a county where the millage rate is about .028. If my airplane was assessed at $50k by the county (it isn't), the tax would be 40% x $50,000 x .028 = $560/yr.

One thing to note is that you essentially get one chance to establish the value of the airplane for property tax purposes. If it gets established too high, you'll end up fighting city hall and losing.

In my case, the county tried to base the value of my airplane on the asking price of RV-6's and -6A's advertised in Trade a Plane. Some of those airplanes had panels that cost more than my entire airplane. Also, asking prices are not selling prices. Once the county and I came to a mutual understanding things were much better.

Sales and Use Tax:

Georgia charges a sales and use tax based on the cost of what you purchased. On a homebuilt aircraft, if you purchased it, you will end up owing the state 6% of the purchase price, assuming you lived in Gwinnett County when you purchased the aircraft. If you are registering a new homebuilt, you will need to provide records to the state to demonstrate what you paid for all of the items that went into your airplane, and will pay sales tax on that amount. Exempt items include used items (a used motor, for instance, or a second hand wing kit), items purchased in state where you've already paid the tax, and items purchased over the internet.

Bottom line... They get you coming and going...
 
Steve,
Given your Egg and Gear box issues, you could argue its worthless down to the metal or cost of the vans kit, which it not far from reality given that Egg has essentially grounded you with no recourse. If you had to sell the plane today, well..... you would not get much. You have statements from the manufacturer and of course your history with the engine gear box combo. Once argued, as stated above, you will get a number and that number will stick forever.
Best,
 
OH MY!

They got me too... they sure are quick. I wonder how they get their information. Thats the nice thing about having a cheap airplane... the tax on a 18 k airplane is probably not nearly as much as a newer Mooney or Bonanza. The thing that gets me is that there is a note that says include a copy of the logbooks?!!! Me thinks not unless they want to pay the copy fees... it's 1971 so there are a bunch of pages....! I'll send them the last couple (10) if they want...
sigh...
 
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I have my plane at Monticello Sky ranch in Jasper County. They call it a Ad Valorem Tax. It however is figured at the 40% x the mill rate, so it must be the same thing.
When do they come looking for the sales tax. I brought a Cessna 172 down here last year from Minnesota. So far they haven't asked for sales tax.
 
I'm in the same boat in Upson County. Only diff is they sent out a new form asking again value from two years ago. Can we not reduce value for depreciation? Is there a precentage that can be subtracted from ealier estimated value?
Bill Phillips
Forsyth, Ga
Flying Zenith 601XL
RV-8a Finishing
 
Bill Phillips said:
I'm in the same boat in Upson County. Only diff is they sent out a new form asking again value from two years ago. Can we not reduce value for depreciation? Is there a precentage that can be subtracted from ealier estimated value?
Bill Phillips
Forsyth,
Flying Zenith 601XL
RV-8a Finishing
Click to expand...

They send out a new appraisal request every year. I guess they hope you'll tell them about the new engine and panel you installed.

As for depreciation, I think you can make that argument, particularly as your engine and prop progress towards tbo.
 
I rented a hangar at the end of last year (October) and that prompted a letter from the tax man to me. I had listed my *reserved* tail number on the hangar lease. They want me to fill out the form describing my aircraft, engine, avioics, etc. that many of you have already mentioned.

Today, my wife called them (she is a CPA) to tell them that I don't really have an airplane, just a loose collection of parts (up to finishing kit; no engine, no avionics). She even explained my tail number is only *reserved* and we can provide paperwork showing this. They didn't care. Get this, they say I have to set up a meeting with them so they can inspect my hangar and my house! I guess I can understand the hangar part, but my house??? Can they do that without a search warrant, Bill (you are the great defender of justice around here) :).

I have nothing to hide, but geeze.
 
apatti said:
I rented a hangar at the end of last year (October) and that prompted a letter from the tax man to me. I had listed my *reserved* tail number on the hangar lease. They want me to fill out the form describing my aircraft, engine, avioics, etc. that many of you have already mentioned.

Today, my wife called them (she is a CPA) to tell them that I don't really have an airplane, just a loose collection of parts (up to finishing kit; no engine, no avionics). She even explained my tail number is only *reserved* and we can provide paperwork showing this. They didn't care. Get this, they say I have to set up a meeting with them so they can inspect my hangar and my house! I guess I can understand the hangar part, but my house??? Can they do that without a search warrant, Bill (you are the great defender of justice around here) :).

I have nothing to hide, but geeze.
Click to expand...

Just for grins, here's what you do...

Store the RV project at a friend's house. Then, create yourself a set of "airplane plans" on something like a napkin or long strip of toilet paper. The key is to make it look as amateurish and scary as possible.

Next step, cut tail surfaces and a couple of wing ribs out of scrap materials you pulled out of a dumpster somewhere.

Wear a funny hat when the assessor visits and talk a lot about the rocket ship you're gonna build when the airplane is complete. Point to a large cardboard box and ask the assessor if s/he wants to try out your new time machine.

I've made this visit as a tech counselor... ;-)
 
search?

you are serious? they want to search hangar and house? fascinating, living in the dying days of a republic. I vote for the mad rocketship idea when they visit.
 
Tony, you know we live in the commie State of Georgia and I'm not sure what the TAX man can do. If you give consent to enter your home they (the State) can enter and search. Police do it all the time to my uninformed clients. I think maybe before you get into a contested event with the tax folks, make an appointment and visit the county tax commissioner. He or she is an elected official and certainily should answer your questions and concerns as you are a tax paying, voting, property owner. If all goes bad about your non plane plane call a tax attorney. Bill
 
Georgia Use Tax question

Hi all,

This is a good thread to introduce myself! My name is Vic and I am about to get started on my RV-8 empennage kit. :) Still collecting tools and setting up shop at the moment. Anyhow, I received the tail kit about 2 months ago and was wondering what other Georgia builders have done for Use tax. In my case, does Georgia require that I pay the use tax for my tail kit on my 2007 tax return?

Or is it an option to wait on paying Use tax until the entire plane is built and ready to register? I just want to keep it legal so there are no problems later down the road.

Thanks in advance.

Kind regards,
Vic
 
The state sent my first bill after I registered the airplane. I had the N-number reserved for a couple of years and they didn't hassle me over that.
 
Thanks for the reply Kyle. Just to clarify-- that first bill you mentioned, was that for Use tax, or are you referring to Property tax?

I would rather wait until the airplane is completed (years from now) to pay the Use tax, but I hear some states charge late penalties . Any thoughts on how Georgia does this?

This tax thing is confusing.
 
super80 said:
Thanks for the reply Kyle. Just to clarify-- that first bill you mentioned, was that for Use tax, or are you referring to Property tax?

I would rather wait until the airplane is completed (years from now) to pay the Use tax, but I hear some states charge late penalties . Any thoughts on how Georgia does this?

This tax thing is confusing.
Click to expand...

Aah, my bad.

The state sent me a use tax bill after the airplane was registered. Same thing with the property tax in the county where the aircraft is based.
 
The Tax Man Cameth

Well... I had my visit from the tax man (er... persons) today. They met me at my hangar and saw my wings. They pulled out a book and noted that I only have a reserved N number; not an actual one. They asked me what I had at home. A canoe and the empanage; no engine, prop, or avionics. They said that "if" there was an assessed value I would get a bill in May. Based on the questions they asked (and later called to ask) I am expecting they will assess a value and expect me to pay taxes on my "loose collection of parts." I am going to research the tax law and see what I find out. Anyone else know if it is normal to tax airplane "parts"???

Oh, and I tried the "I am the manufacturer" bit. They wanted to know if I bought a kit and from where.


Thanks,
 
Tax

It's not an airplane until the Cirtificate of Airworthiness has been issued. You don't even have a Bill of Sale for it. Until then it is a collection of parts that you may have to pay sales tax on. Surely they can comprehend that.-------Well, maybe not; after all it is the County Gov't. They're usually not the brightest bulbs on the Christmas tree.:rolleyes:
 
Wow Tony! To say this is intrusive is an understatement. Sounds like these people need some education before they do their petty inspections. How long until they come poking around my hangar and others at PXE asking questions and making threats?

Un-freakin-believable :mad:
 
Internet...

Kyle Boatright said:
.......
Sales and Use Tax:

Georgia charges a sales and use tax based on the cost of what you purchased. On a homebuilt aircraft, if you purchased it, you will end up owing the state 6% of the purchase price, assuming you lived in Gwinnett County when you purchased the aircraft. If you are registering a new homebuilt, you will need to provide records to the state to demonstrate what you paid for all of the items that went into your airplane, and will pay sales tax on that amount. Exempt items include used items (a used motor, for instance, or a second hand wing kit), items purchased in state where you've already paid the tax, and items purchased over the internet.

Bottom line... They get you coming and going...
Click to expand...

Kyle... GA really exempts internet purchases? That isn't the usual practise on other states.

If so, order everything by e-mail from Vans, etc.....:D

gil A
 
OK, I'm confused. Who can legally charge what tax?

Is it sales tax, property (ad-valorem) tax, or use tax?

Is it the city, county, state, or all three of them charging some sort of tax?

I also don't understand how they can charge a sales tax on items that were purchased out of state either by mail, phone, or internet?

Jerry
Needing clarification!
 
RV8Squaz said:
OK, I'm confused. Who can legally charge what tax?

Is it sales tax, property (ad-valorem) tax, or use tax?

Is it the city, county, state, or all three of them charging some sort of tax?

I also don't understand how they can charge a sales tax on items that were purchased out of state either by mail, phone, or internet?

Jerry
Needing clarification!
Click to expand...

In Georgia, you pay sales and use tax on an airplane once. Regardless of whether you bought it or built it. In my case (maybe everyone's case), this tax was collected by the state. When you tell the state tax collector that you didn't buy an airplane, they say... "That's why it is also a use tax."

You pay property tax (ad-valorem) every year...
 
repeal?

the gov has been talking about repealing property tax. would be much warranted improvement to our current situation.
 
Taxes on homebuilts

IMHO, tax collectors are *&^%$#@((!!? and you can quote me.

The collectors got my tail number from the FBO, but they can also retrieve the info from the FAA data base when you reserve a tail number. When I got my notice I contacted them and we "discussed" the value of a homebuilt, the first year the accessment was low, the second year it was very high; so I requested all the information (FOIA) the accessor used to establish the amount and discovered that they used Trade-A-Plane prices!! I appealled and the third year it stablized to an amount in between the two extremes. My recommendation is take action immediately when a Georgia blood sucker get on your 6 O'Clock. Break hard right and go vertical with an aggressive appeal providing copies of your invoices showing taxes paid and cost of the metal parts from Van's. (BUT do not offer any other information like specific engine, avionics, etc., unless specifically asked about those old, used items.) And then, after the battle as you are trailing smoke and looking the mother earth rushing up at you, hopefully you will have gotten at least one small victory by having the bill based on only the insurance value. Anyway, forgive me if I offended any tax collectors out there.

Jim Tillman
 
It is apparent that Georgia accesses the FAA database like a hawk.

Three weeks after I sent in the registration for my new Rocket, I have just received a notice from the Georgia Department of Revenue, Compliance Division to let me know of my obligations.

"Information received by this Division indicates you are the owner of an aircraft that is domiciled in Georgia................."

This is not yet an aircraft according to the FAA rules, it is just a paid registration number. I guess I have an opportunity to educate those fine folks in Rome that are trying to prove their worth to the State by producing income.

I am interested in receiving some feedback on how homebuilt aircraft in Georgia have been valued. Did you give them a number, etc. Thanks, I know it is painful to discuss this matter.
 
gnuse said:
It is apparent that Georgia accesses the FAA database like a hawk.

Three weeks after I sent in the registration for my new Rocket, I have just received a notice from the Georgia Department of Revenue, Compliance Division to let me know of my obligations.

"Information received by this Division indicates you are the owner of an aircraft that is domiciled in Georgia................."

This is not yet an aircraft according to the FAA rules, it is just a paid registration number. I guess I have an opportunity to educate those fine folks in Rome that are trying to prove their worth to the State by producing income.

I am interested in receiving some feedback on how homebuilt aircraft in Georgia have been valued. Did you give them a number, etc. Thanks, I know it is painful to discuss this matter.
Click to expand...

My airplane was taxed at the price of the kits I purchased from Van's. I bought two sub-kits in-state used, so didn't need to pay sales tax on that. Also, I purchased my radios panel, paint, etc. in-state and paid sales tax at the point of purchase. Also, bought a used engine (non-taxable) and rebuilt it myself. I ended up paying tax on <$10k.

By the way, I have some suggestions for you - check your private in-box.
 
The simple fact is states tax airplanes and if you have one you owe the tax.
You are not the first one to reserve an N number or build a kit and most states have policies to cover these instances.

I am lucky, in Mississippi the tax law says "when you station a plane in the state for the purpose of flight" so the n reservation, kits and parts are not an issue here. All states query the FAA data base so it probably wasn't the fbo or the curmudgeon in the next hangar that rolled over on you.

I do not like paying taxes anymore than the next guy and I am not defending ridiculous taxes (as recently noted in Florida) nor am I defending unconscionable collection methods but......

The airports we fly in and out of are funded mainly by the Fed but the fed requires a significant portion of airport projects come from state and local funds. The cost of airport improvements in a given state usually exceeds what they collect in aircraft taxes, user fees, landing fees etc.

It is not un reasonable that they would want to collect a "fair" amount of tax or fees. (yes the definition of fair is widely variable"

The tax guys also know that a lot of devious people will....

move their plane across a state border, hide their engine and avionics in their home while the assessor looks at the rest of the kit in the hangar...
put their plane in a Delaware Corp with a Delaware address.

This results in their rather bizarre tactics and skeptical attitude.

Were everyone just to pay the tax as they should up front they would be less aggressive in their attempts to collect.

There is often a fine line between legal tax avoidance and criminal tax evasion. Some of the advice I have seen on this forum and others could land you in a criminal court rather than tax court if followed. The best place for information and answers to tax questions is your state tax office or an attorney. Don't play games with these people they are deadly serious and if you tick them off you will spend very little time building and a lot of time on paperwork.
 
"Were everyone just to pay the tax as they should up front they would be less aggressive in their attempts to collect."

WOW, how do you argue with that on tax day?

Not to turn this thread into something else, but you have to be kidding! Nothing short of a revolt is going to stop the politicians from taxing those of us who are "fortunate" until we too are "needy".

Pay your taxes to stay out of jail, not because the politicians are doing noble work with it!!

Sorry tax day brings out the worst in me!!
 
I had a nice talk with the lady in Rome. She understood my concern and said the notice was automatically sent out by "some drone" (my words) as a result of a CD that they get from the FAA. She agreed the wording of the letter is a bit heavy handed....she wasn't.

She understood that I had just registered my N number and not domiciled an aircraft.

I appreciate the feedback from those experienced with homebuilt valuations in Georgia that I have received.
 
Wow, I want to move to north GA. Let me know if you hear of any openings at Berry College or NGCSU. :)
 
Property Tax in Alabama

Just curious about this same issue in the state of Alabama. I will soon be relocating in the Dothan area with my RV8A.

Pat
 
Alabama

Pat,

To the best of my knowledge, the personal property tax is kind of hit or miss. At least here in Geneva County. That's one county SW of Dothan. I paid around $275 for my Cherokee.

As far as sales/use tax, on this years state income tax forms. there's a question about out of state purchases. I had heard that some other fellows got a notice when they registered their planes that the state not only wanted the use tax, but penalty and interest. I just paid the tax based on reciepts to date so I have a record of paying it.

I'm about 35 miles SW of Dothan and there are several in the area building and flying. From what I here, you might want to start looking for a hanger. Enterprise, Dothan, Headland are all close. Bonifay (Tri-County) in FL. is not far and neither are we in Geneva, but there's no hangers.

Let me know if I can help.
 
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