Question on taxes

Brantel · #1 10-19-2006, 02:59 PM

Question for all you who know:

At the end of this building an airplane, when I go to register it, is there a requirement to pay sales tax for it like you do when you register a car (Tennessee)?

If there is no sales tax to pay, do you have to pay Use Tax (Tennessee)?

Most of the stuff that goes into my plane including the kit, I do not pay sales tax on when I buy because it is an out of state sale 99% of the time. So does this mean at the end, I will have to pay Use Tax?

cjensen · #2 10-19-2006, 03:11 PM

Do a search on sales tax. There have been several threads on the subject. In a nutshell though, you'll have to check your state tax laws. Here in Illinois, we do pay a one time use tax on all merchandise purchased out of state (as I'm sure EVERYONE does this in Illinois!

). Anything that is $600 and over is due by the end of the next month after purchase. Less than $600, and it's due within the year. I've been paying my taxes as I go so that I don't have a large tax bill to pay at the end. Illinois is 6.25%, and I've paid something like $500 through the wings so far.

KEEP ALL YOUR TAX FORMS IF YOU PAY AS YOU GO SO YOU DON'T GET SCREWED WHEN FINISHED.