Property Tax in Georgia

[steve murray]

Hapy New Year, first business day of the year and I just got a tax notice from the city of Gwinnett. Can anybody give me an idea of the tax bill I should budget for? Is there also a State Tax?

Steve

[jmbaute]

I got the same bill. They sure were quick this year.

In Gwinnett, they tax at the same rate as a car, I think. I forget what the bill was on our old Mooney, but it was like $350 or something last year.

Hint...if your plane has something wrong with it, they tax it at a lower rate. Having a 40 year old plane, I usually have something that needs to be repaired, so I send the estimate with the tax return.

[Kyle Boatright]

Originally Posted by steve murray

Hapy New Year, first business day of the year and I just got a tax notice from the city of Gwinnett. Can anybody give me an idea of the tax bill I should budget for? Is there also a State Tax?

Steve

Steve,

I assume this is a property tax assessment, if so, read below. If it is a sales/use tax assessment, skip down to the bottom of the page.

Property Tax:

What is the local millage rate, what aircraft do you have, and what is its status (tail kit finished, nearly complete airframe with 747 style panel, flying aircraft, etc)?

In Georgia, the property tax is based on 40% of the assessed value of the property multiplied by the millage rate.

My airplane is taxed in a county where the millage rate is about .028. If my airplane was assessed at $50k by the county (it isn't), the tax would be 40% x $50,000 x .028 = $560/yr.

One thing to note is that you essentially get one chance to establish the value of the airplane for property tax purposes. If it gets established too high, you'll end up fighting city hall and losing.

In my case, the county tried to base the value of my airplane on the asking price of RV-6's and -6A's advertised in Trade a Plane. Some of those airplanes had panels that cost more than my entire airplane. Also, asking prices are not selling prices. Once the county and I came to a mutual understanding things were much better.

Sales and Use Tax:

Georgia charges a sales and use tax based on the cost of what you purchased. On a homebuilt aircraft, if you purchased it, you will end up owing the state 6% of the purchase price, assuming you lived in Gwinnett County when you purchased the aircraft. If you are registering a new homebuilt, you will need to provide records to the state to demonstrate what you paid for all of the items that went into your airplane, and will pay sales tax on that amount. Exempt items include used items (a used motor, for instance, or a second hand wing kit), items purchased in state where you've already paid the tax, and items purchased over the internet.

Bottom line... They get you coming and going...

[Kahuna]

Steve,
Given your Egg and Gear box issues, you could argue its worthless down to the metal or cost of the vans kit, which it not far from reality given that Egg has essentially grounded you with no recourse. If you had to sell the plane today, well..... you would not get much. You have statements from the manufacturer and of course your history with the engine gear box combo. Once argued, as stated above, you will get a number and that number will stick forever.
Best,

[brianwallis]

They got me too... they sure are quick. I wonder how they get their information. Thats the nice thing about having a cheap airplane... the tax on a 18 k airplane is probably not nearly as much as a newer Mooney or Bonanza. The thing that gets me is that there is a note that says include a copy of the logbooks?!!! Me thinks not unless they want to pay the copy fees... it's 1971 so there are a bunch of pages....! I'll send them the last couple (10) if they want...
sigh...

[Gary 40274]

I have my plane at Monticello Sky ranch in Jasper County. They call it a Ad Valorem Tax. It however is figured at the 40% x the mill rate, so it must be the same thing.
When do they come looking for the sales tax. I brought a Cessna 172 down here last year from Minnesota. So far they haven't asked for sales tax.

[TSwezey]

This is why I am going to keep my plane in South Carolina.

[Bill Phillips]

I'm in the same boat in Upson County. Only diff is they sent out a new form asking again value from two years ago. Can we not reduce value for depreciation? Is there a precentage that can be subtracted from ealier estimated value?
Bill Phillips
Forsyth, Ga
Flying Zenith 601XL
RV-8a Finishing

[Kyle Boatright]

Originally Posted by Bill Phillips

I'm in the same boat in Upson County. Only diff is they sent out a new form asking again value from two years ago. Can we not reduce value for depreciation? Is there a precentage that can be subtracted from ealier estimated value?
Bill Phillips
Forsyth,
Flying Zenith 601XL
RV-8a Finishing

They send out a new appraisal request every year. I guess they hope you'll tell them about the new engine and panel you installed.

As for depreciation, I think you can make that argument, particularly as your engine and prop progress towards tbo.

[apatti]

I rented a hangar at the end of last year (October) and that prompted a letter from the tax man to me. I had listed my *reserved* tail number on the hangar lease. They want me to fill out the form describing my aircraft, engine, avioics, etc. that many of you have already mentioned.

Today, my wife called them (she is a CPA) to tell them that I don't really have an airplane, just a loose collection of parts (up to finishing kit; no engine, no avionics). She even explained my tail number is only *reserved* and we can provide paperwork showing this. They didn't care. Get this, they say I have to set up a meeting with them so they can inspect my hangar and my house! I guess I can understand the hangar part, but my house??? Can they do that without a search warrant, Bill (you are the great defender of justice around here) .

I have nothing to hide, but geeze.