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California Use Tax ???

BruceW

Well Known Member
Becoming a repeat offender and ordering an RV-14 kit. Plus the other big ticket items. Wondering what Cali builders are doing for Use Tax payment, since out of State suppliers are not charging CA sales tax?

It's OK if you are "answering for a friend" . . .
Did you pay use tax on the kit purchase? If so, when? At purchase or with income tax filing?
If not, any issues?

Im focused on the big ticket items; kit, engine, prop.
This is CA specific. Thanks in advance.
 
Vans started collecting CA sales tax about three years ago so it’s paid when you buy them.
 
Spruce collects CA sales tax, too. My "friend" simply keeps all receipts in a folder, and if/when the taxman comes, he can prove to said taxman how much sales tax he has paid over the years.
 
Pretty much everyone now days collect tax when shipped to CA. Amazon, ebay and of course VANS.
 
Woops!

I just checked the Vans Orders, and they DO include CA sales tax.
Must have avoided seeing it in all the numbers.

Never mind.
 
Different tax

As a CA resident keep in mind that CA assesses property tax on airplanes owned as of Jan 1. each year. So if it turns out that you’re ready for your A/W inspection in december, you can save a year’s worth of taxes (over $1K on a -14) by delaying that inspection until after Jan 1.
 
Ready to fly

When i am ready to fly, i am ready to fly. Avoiding a $1000 tax wont stop me. Thats like 1 fill up.
 
And if you sell your unfinished kit (or any part) to someone in California, they WILL be required to pay sales tax all over.....your tax receipts do not pass to the new owner.
 
You could pick up your kits and get away without CA sales tax.

Not so easy..... They bill you when your N# shows up in their county records.

And, they add a fine depending on the amount of time you avoided them.
 
For my Emp last year, Van's collected sales tax. For the wings this year, Van's did not (both will-call pickup). So I'll be setting aside $677.76 (that's how much Van's would have collected for sales tax) for use tax next April.
 
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and what really sucks is that, unlike VAT, sales and use taxes are paid again and again on resales...
 
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