Washington taxes

[Larco]

If one was to move to Washington, what would the tax liability be to register an RV. I've heard that there is a sales tax and a annual property tax obligation. Larry

[Jim P]

DC or WA State?

If WA State.... then you'll end up paying an annual $35 registration fee to the WSDOT, which isn't bad. Now, if you never paid taxes on your aircraft when you bought/ registered it the first time, WA is going to get you for use tax, and that varies depending on the county where the aircraft is based when registered. I think I paid about 9.x% when I registered my -7 several years ago, generally a painless process, just bring the check book to the tax office.

[RV7AV8R]

That "use tax" is like a sales tax that you pay once. You get credit for paying it or a sales tax in a different state I believe.

[grayforge]

Bringing this back from the past...

So what items does WA State tax when you build the plane? Do you have to volunteer receipts for everything you installed?

Thanks,
Russ

[alpinelakespilot2000]

Originally Posted by grayforge

Bringing this back from the past...

So what items does WA State tax when you build the plane? Do you have to volunteer receipts for everything you installed?

Thanks,
Russ

yes to the above. They also seem to know a reasonable ballpark for what an RV should cost. One office even pulled up vans cost estimator when I inquired about what receipts to bring. Basically you are going to pay state and local sales tax (around 8%) on anything for which sales tax has not already been paid.

[Flyguytki]

You will also find the exact opposite in some Counties. When I went to pay my taxes I had a stack of receipts and I was about to only be charged taxes on the Tail Kit because that's the receipt that was on top. The gentleman had no idea what he was looking at, I had to correct him and show him that there were multiple receipts. All in all Taxes were right around $1,500.

[grayforge]

Only $1500? I'm looking at a bill of $9,000 if my plane ends up costing $100k. :-(

[Flyguytki]

I'll see if I can find the paperwork when I get home. It might have gone with the airplane tho.

[Jim P]

Make sure you keep and show any receipts where you've already paid taxes. I built a portion in CA, so I paid sales tax on any extra components I got through Aircraft Spruce. All that counts towards your overall tax obligation.

[JonJay]

Jim is spot on. However, I know many aircraft registered in the state that have never paid any taxes. I paid mine because it is the law, not because it is right or wrong not too, that is someone's opinion. (many people seem to feel cheating on your taxes isn't cheating. Again, I offer no opinion and don't want to see this thread go down that road, it wouldn't go down that way long anyway.)

At the time, the state did not have the resources to follow up on registered aircraft and make sure the taxes where paid. They probably still don't.
I was told by the state revenue officer that you can volunteer to pay your taxes at anytime and they will forgive any tardiness (steep penalties and compounding interest). However, if they catch you, big ouch!
This was quite a few years ago, so perhaps they have refined their systems, but I doubt it.

I took my build receipts and they accepted them.