Property Tax in Georgia

[bsacks05]

Wow Tony! To say this is intrusive is an understatement. Sounds like these people need some education before they do their petty inspections. How long until they come poking around my hangar and others at PXE asking questions and making threats?

Un-freakin-believable

[az_gila]

Originally Posted by Kyle Boatright

.......
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...

Kyle... GA really exempts internet purchases? That isn't the usual practise on other states.

If so, order everything by e-mail from Vans, etc.....

gil A

[RV8Squaz]

OK, I'm confused. Who can legally charge what tax?

Is it sales tax, property (ad-valorem) tax, or use tax?

Is it the city, county, state, or all three of them charging some sort of tax?

I also don't understand how they can charge a sales tax on items that were purchased out of state either by mail, phone, or internet?

Jerry
Needing clarification!

[Kyle Boatright]

Originally Posted by RV8Squaz

OK, I'm confused. Who can legally charge what tax?

Is it sales tax, property (ad-valorem) tax, or use tax?

Is it the city, county, state, or all three of them charging some sort of tax?

I also don't understand how they can charge a sales tax on items that were purchased out of state either by mail, phone, or internet?

Jerry
Needing clarification!

In Georgia, you pay sales and use tax on an airplane once. Regardless of whether you bought it or built it. In my case (maybe everyone's case), this tax was collected by the state. When you tell the state tax collector that you didn't buy an airplane, they say... "That's why it is also a use tax."

You pay property tax (ad-valorem) every year...

[TSwezey]

Chatham County, Georgia, taxes the furniture in a furnished rental property.

[grover]

the gov has been talking about repealing property tax. would be much warranted improvement to our current situation.

[till3]

IMHO, tax collectors are *&^%$#@((!!? and you can quote me.

The collectors got my tail number from the FBO, but they can also retrieve the info from the FAA data base when you reserve a tail number. When I got my notice I contacted them and we "discussed" the value of a homebuilt, the first year the accessment was low, the second year it was very high; so I requested all the information (FOIA) the accessor used to establish the amount and discovered that they used Trade-A-Plane prices!! I appealled and the third year it stablized to an amount in between the two extremes. My recommendation is take action immediately when a Georgia blood sucker get on your 6 O'Clock. Break hard right and go vertical with an aggressive appeal providing copies of your invoices showing taxes paid and cost of the metal parts from Van's. (BUT do not offer any other information like specific engine, avionics, etc., unless specifically asked about those old, used items.) And then, after the battle as you are trailing smoke and looking the mother earth rushing up at you, hopefully you will have gotten at least one small victory by having the bill based on only the insurance value. Anyway, forgive me if I offended any tax collectors out there.

Jim Tillman

[gnuse]

It is apparent that Georgia accesses the FAA database like a hawk.

Three weeks after I sent in the registration for my new Rocket, I have just received a notice from the Georgia Department of Revenue, Compliance Division to let me know of my obligations.

"Information received by this Division indicates you are the owner of an aircraft that is domiciled in Georgia................."

This is not yet an aircraft according to the FAA rules, it is just a paid registration number. I guess I have an opportunity to educate those fine folks in Rome that are trying to prove their worth to the State by producing income.

I am interested in receiving some feedback on how homebuilt aircraft in Georgia have been valued. Did you give them a number, etc. Thanks, I know it is painful to discuss this matter.

[Kyle Boatright]

Originally Posted by gnuse

It is apparent that Georgia accesses the FAA database like a hawk.

Three weeks after I sent in the registration for my new Rocket, I have just received a notice from the Georgia Department of Revenue, Compliance Division to let me know of my obligations.

"Information received by this Division indicates you are the owner of an aircraft that is domiciled in Georgia................."

This is not yet an aircraft according to the FAA rules, it is just a paid registration number. I guess I have an opportunity to educate those fine folks in Rome that are trying to prove their worth to the State by producing income.

I am interested in receiving some feedback on how homebuilt aircraft in Georgia have been valued. Did you give them a number, etc. Thanks, I know it is painful to discuss this matter.

My airplane was taxed at the price of the kits I purchased from Van's. I bought two sub-kits in-state used, so didn't need to pay sales tax on that. Also, I purchased my radios panel, paint, etc. in-state and paid sales tax at the point of purchase. Also, bought a used engine (non-taxable) and rebuilt it myself. I ended up paying tax on <$10k.

By the way, I have some suggestions for you - check your private in-box.

[N395V]

The simple fact is states tax airplanes and if you have one you owe the tax.
You are not the first one to reserve an N number or build a kit and most states have policies to cover these instances.

I am lucky, in Mississippi the tax law says "when you station a plane in the state for the purpose of flight" so the n reservation, kits and parts are not an issue here. All states query the FAA data base so it probably wasn't the fbo or the curmudgeon in the next hangar that rolled over on you.

I do not like paying taxes anymore than the next guy and I am not defending ridiculous taxes (as recently noted in Florida) nor am I defending unconscionable collection methods but......

The airports we fly in and out of are funded mainly by the Fed but the fed requires a significant portion of airport projects come from state and local funds. The cost of airport improvements in a given state usually exceeds what they collect in aircraft taxes, user fees, landing fees etc.

It is not un reasonable that they would want to collect a "fair" amount of tax or fees. (yes the definition of fair is widely variable"

The tax guys also know that a lot of devious people will....

move their plane across a state border, hide their engine and avionics in their home while the assessor looks at the rest of the kit in the hangar...
put their plane in a Delaware Corp with a Delaware address.

This results in their rather bizarre tactics and skeptical attitude.

Were everyone just to pay the tax as they should up front they would be less aggressive in their attempts to collect.

There is often a fine line between legal tax avoidance and criminal tax evasion. Some of the advice I have seen on this forum and others could land you in a criminal court rather than tax court if followed. The best place for information and answers to tax questions is your state tax office or an attorney. Don't play games with these people they are deadly serious and if you tick them off you will spend very little time building and a lot of time on paperwork.