Taxes in Texas

[DonFromTX]

I was not born here, but I got here as fast as I could

Originally Posted by Robert Anglin

The state tried back in the 80's to get a property tax going for aircraft and other things. It did not last long. If your not using it for business they don't go after you as of yet. My hart stays in TEXAS and my taxes stay in my pocket.
Hope this helps. Yours, R.E.A. III #80888

[BHunt]

Originally Posted by Robert Anglin

The state tried back in the 80's to get a property tax going for aircraft and other things. It did not last long. If your not using it for business they don't go after you as of yet. My hart stays in TEXAS and my taxes stay in my pocket.
Hope this helps. Yours, R.E.A. III #80888

Helps a lot. Thank you.

[Neal@F14]

Originally Posted by BHunt

So, I just moved my airplane to Kickapoo airport in Wichita Falls (purchased the airplane Oct '16) for my next USAF assignment.

Being new to airplane ownership... How does the whole tax thing work in TX?

I did some Googling but its all pretty confusing. Any help is appreciated!

You may get a letter from the Wichita Appraisal District re: property tax if you use an aircraft for commercial purposes. All you have to do is sign an affidavit that aircraft is personal use only and not used as part of a business, then you've good to go... NO TAXES!

[BHunt]

Originally Posted by Neal@F14

You may get a letter from the Wichita Appraisal District re: property tax if you use an aircraft for commercial purposes. All you have to do is sign an affidavit that aircraft is personal use only and not used as part of a business, then you've good to go... NO TAXES!

Thank you!

[vfr800]

Occasional sale exemption applies in Texas for aircraft if both the buyer and seller are effectively private parties. (More specific wording in the TX tax regs but that's the spirit.)

There's a handy Texas Comptroller form that can be googled, printed and signed by the seller and could be helpful if the tax man comes looking for money when they eventually see the FAA registration data.

Having that on hand may prove the exemption valid and save money later. AFAIK, that's for sales tax and theres no use tax in TX for private GA flying (outside of fuel taxes, etc.).

[jliltd]

I live in a Texas county that puts an annual use tax on any aircraft registered to an entity of any kind. Even if it's two friends who set up a corporation or LLC just for liability reasons with strictly personal use. No affidavit mentioned. If the aircraft is registered in an individual's name or is co-owned by individuals there is no annual use tax. Even if a single-seat experimental Pitts is registered to Frank And Harry, LLC our local Central Appraisal District classifies it as commercial just because of the "LLC". It's Experimental without authority to be used commercially. It's one seat day VFR airplane the size of a Volkswagen with a 15 gallon tank for crying out loud. I have many friends who have moved their aircraft to NM airports because of this. I sure would like to see one of those affidavits from Wichita Falls area.

In Texas aircraft sales are not subject to sales tax unless the seller makes his living selling aircraft. What's known as an "occasional sale" is exempt. So if you purchase an aircraft from Joe the Plumber or even Exxon Mobile in Houston, no sales tax. If you purchase an aircraft from Van Bortel in Arlington it triggers sales tax. Because Van Bortel is an aircraft broker and that's their business. Same thing if you purchased an aircraft from Cutter in Deer Valley, AZ and bring it to Texas. Texas will want sales tax because Cutter is a dealer despite being in AZ.

So no worries with sales tax if you bought the airplane out of state prior to moving. Or bought it from an individual whether Texan or otherwise. Or from an entity anywhere who doesn't make aircraft sales a part of their normal course of business. And the mere fact you are military in Wichita Falls will garner a large modicum of respect with the good folks who live there. As well it should.

Jim

[Maxrate]

Aircraft taxes in TEXAS, say it ain't so........Get a rope!!!

[BHunt]

Originally Posted by jliltd

I live in a Texas county that puts an annual use tax on any aircraft registered to an entity of any kind. Even if it's two friends who set up a corporation or LLC just for liability reasons with strictly personal use. No affidavit mentioned. If the aircraft is registered in an individual's name or is co-owned by individuals there is no annual use tax. Even if a single-seat experimental Pitts is registered to Frank And Harry, LLC our local Central Appraisal District classifies it as commercial just because of the "LLC". It's Experimental without authority to be used commercially. It's one seat day VFR airplane the size of a Volkswagen with a 15 gallon tank for crying out loud. I have many friends who have moved their aircraft to NM airports because of this. I sure would like to see one of those affidavits from Wichita Falls area.

In Texas aircraft sales are not subject to sales tax unless the seller makes his living selling aircraft. What's known as an "occasional sale" is exempt. So if you purchase an aircraft from Joe the Plumber or even Exxon Mobile in Houston, no sales tax. If you purchase an aircraft from Van Bortel in Arlington it triggers sales tax. Because Van Bortel is an aircraft broker and that's their business. Same thing if you purchased an aircraft from Cutter in Deer Valley, AZ and bring it to Texas. Texas will want sales tax because Cutter is a dealer despite being in AZ.

So no worries with sales tax if you bought the airplane out of state prior to moving. Or bought it from an individual whether Texan or otherwise. Or from an entity anywhere who doesn't make aircraft sales a part of their normal course of business. And the mere fact you are military in Wichita Falls will garner a large modicum of respect with the good folks who live there. As well it should.

Jim

Thank you for the detailed response. I appreciate the time you put in to write it.