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  #11  
Old 01-01-2020, 05:09 PM
hiline hiline is offline
 
Join Date: Nov 2017
Location: El Dorado Hills,Ca
Posts: 62
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Answer:
You must take delivery out of the state of calif to not pay the sales tax in this state.Take delivery in this state and you pay taxes,take delivery across the border and no sales tax to Calif.
OR,you can hire a transport Co to fly it out of the state and get a bill of lading and keep it on file to prove you hired someone to transport( fly) it out.
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  #12  
Old 01-01-2020, 05:48 PM
SPX SPX is online now
 
Join Date: Dec 2018
Location: San Diego
Posts: 511
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Quote:
Originally Posted by SantosDumont View Post
In CA there's no sales tax on aircraft (bought out of state), there is unsecured property tax. They have to pay taxes to the county on the value of the aircraft each year.

https://www.cdtfa.ca.gov/industry/ve...raft-guide.htm
True in that California does not call it a sales tax, but instead it's called use tax. Use tax is billed at the same rate as the sales tax where the airplane is based. Use tax applies whether the airplane was bought out of state or not, unless you qualify for a use tax exemption (which are listed on the website that you have listed above)
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  #13  
Old 01-01-2020, 05:51 PM
SPX SPX is online now
 
Join Date: Dec 2018
Location: San Diego
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Quote:
Originally Posted by hiline View Post
Answer:
You must take delivery out of the state of calif to not pay the sales tax in this state.Take delivery in this state and you pay taxes,take delivery across the border and no sales tax to Calif.
OR,you can hire a transport Co to fly it out of the state and get a bill of lading and keep it on file to prove you hired someone to transport( fly) it out.
Out of state delivery is step 1 of how to legally avoid paying the use tax, but there are several other steps involved. If you are buying the airplane for personal use, you're probably not going to be exempt.
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  #14  
Old 01-01-2020, 06:35 PM
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cfiidon cfiidon is offline
 
Join Date: Apr 2008
Location: California
Posts: 653
Default Take it Out and keep it out for 12 months except for repairs

I don't see it as an issue. When you register, your home state will see the addition and levy a tax if applicable. California will never know that an out of state resident bought an airplane and took it out of state. Yes, the prior owner will notify the county of residence that he is no longer subject to annual property tax, but the county guys don't talk to the state guys. Even if they did, they typically don't have an issue with a non-dealer sale. To be certain, call the California Tax gurus.

See this link: https://www.cdtfa.ca.gov/industry/ve...e.htm#Aircraft

"You may not be required to pay California use tax if the only use of the aircraft in California is to remove it from the state and it will be used solely thereafter outside this state.

This exclusion only applies to a purchase that would otherwise be subject to use tax. No use of the aircraft, other than to remove it from the state, can be made. This exclusion does not apply to a purchase from an aircraft dealer subject to sales tax.

Delays for emergency repairs made to the aircraft must be verified as functionally necessary for the aircraft to continue its departure from the state. You must provide supporting documentation such as fuel, repair, hangar, and/or lodging receipts to verify the property's departure from California, plus documentation showing that the aircraft did not return during the applicable test period."
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