Tax Man

[mv031161]

In some states (SC my case) If you buy a Pre-Owned Exp Aircraft, I noticed there's is a difference in the way the Tax man will approach you.

I.E Claiming your aircraft model as an "John Doe RV...." is not the same as claiming a plain "RV-..."

On the 1st; Tax man will have no clue what a "John Doe RV..." is or where to look for references! Most likely they will ask around for price comparison. At the end, they will put the burden on you to say what it is worth and tax you appropriately!

2nd Scenario: The burden still on you but now they will use all available "FOR SALE" market data available at a key stroke for all RV...'s for sale but now is your job to tell prove you did not pay that much for it...!

Whats your experience? Taboo Subject?

[rleffler]

Don't assume that the state tax folks are na?ve idiots. With the thousands of flying RVs, the smart ones are well aware of all the variations.

The best approach is to pay tax on your annual income tax (most states support this) when you buy the kits.

In my state (OH), I got a bill for fair market resale value a short time after I filed the registration. It was a quick conversation with them to explain that I paid on previous year's taxes for all the kits but one. All they asked was to pay the tax on the last kit and send them copies of all the previous invoices.

bob

[TomVal]

Mitch,

After showing them (SC) the sales agreement and a copy of the wire transfer, they lowered the tax basis. Two days later I received the adjusted property tax statement in the mail. Note: SC sales tax on a vehicle (including aircraft) cannot exceed $300.

Regards,

[airguy]

I suppose an Excel spreadsheet or similar showing the cost of the items purchased during the build would likely satisfy them.

[N941WR]

Originally Posted by TomVal

Mitch,

After showing them (SC) the sales agreement and a copy of the wire transfer, they lowered the tax basis. Two days later I received the adjusted property tax statement in the mail. Note: SC sales tax on a vehicle (including aircraft) cannot exceed $300.

Regards,

The problem in SC not just the one time sales tax but the reoccurring property tax.

When I moved to SC, I based it on what NC valued my -9 on, which helped.

[TomVal]

Originally Posted by N941WR

The problem in SC not just the one time sales tax but the reoccurring property tax.

When I moved to SC, I based it on what NC valued my -9 on, which helped.

As you and I both opined, that with credible documentation, SC will reduce the property tax valuation without too much fuss. When these issue crop up, I usually visit the office in person. Usually the clerk will call out the supervisor to eyeball me and the documents, then several days later I receive the adjusted valuation in the mail.

Are there states with non-reoccurring property tax?

Regards,

[N941WR]

Originally Posted by TomVal

...
Are there states with non-reoccurring property tax?

Regards,

Yes, but they get you in other ways; higher income taxes, higher property taxes on land/homes, higher sales tax, registration fees, etc. Sometimes they get you on all three.

Before moving to SC from NC a few years back I was trying to get the law changed so that homebuilt planes, cars, and boats would be taxed at a low flat rate to the builder, say $100/yr. However, if they sold the plane, car, or boat the buyer would pay property tax based on the sales price. The idea being that you helped the local economy by building because you are either paying sales tax along the way and are supporting local businesses.

Unfortunately I couldn't get anyone to help, not even the EAA.

[Infidel]

We (I) pay annual personal property tax on pretty much all monetary items owned. Fortunately for me and the rest in my locale, WV is behind the times and was completely baffled as my bird doesn't fit the standard Cessna, Piper, Mooney, etc., list they have on file. With that said, I reported the value.