Tenn or Ga for taxes

Living in the far western corner of NC, I can base my plane in Georgia or Tennessee.

Does anyone have a handle on the difference in taxes ( sales, use, etc.) for the two states. I'm assuming that the state where you hangar your plane is the state you pay taxes to.

Should be completed by next spring ( hope, hope).
Thanks,
Tom H.

Tom what's the tax procedure for a experimental in NC. I'm moving down near Raleigh from upstate NY and wondering if I should finish my plane here or down in NC.

ad valorem tax in GA

Georgia has an ad valorem tax. You pay tax on the value stated every year in November. Don't know about TN

Someone I know called the manager of the airport he wanted to be based at. Asked if the manager submitted a list of based aircraft to the state. "Nope." Does any government entity roll through occasionally and note the tail numbers of planes tied down there? "Not in the 20 years I've been here." Soon thereafter, a new Delaware LLC was formed. Took the sales tax money, put it in an escrow account, should the taxman ever come calling, which he then invested in Chipotle, his favorite lunch hangout. That was five years ago, and the escrow fund could buy 1/3rd of his plane now.

tomhanaway said:

I'm assuming that the state where you hangar your plane is the state you pay taxes to.

Thanks,
Tom H.

Click to expand...

Never assume, my guess is both states (hangar, resident) will try to tax you!

Tan Tax

You pay Tennessee an excise tax when you buy and register or move a plane from out of state to TN. It is a 7% of value. Experimentals are somewhat tougher for them since they can't look in a "blue book" to get typical value.

Taxes

Register it in NC. They have a max tax of $1500.

I had an absolutely horrible experience with the TN tax pitbulls.

Even though my plane is based in MS, they still came after me because I live in TN.

They established a value of $115,000 for my RV 8 without knowing anything about it. Since this was four years after I already told them it was based in MS, they claimed that I also owed them 7% interest on back due taxes. It amounted to about $10,000. "Pay it, or we'll put a lien on your house."

After several months of anguish, I finally got it resolved.

Stay away from the TN tax pitbulls no matter what you do.

Craig MacArthur