Aircraft tax question for Potter County, TX.

AX-O · #1 07-02-2009, 07:17 PM

All,
A friend of mine just received a tax bill from Potter County, TX for his certified aircraft. If you have any information regarding this, can you help him out by providing some info? My understanding was that airplane tax did not apply in TX. Thanks in advance.

Mel · #2 07-02-2009, 07:24 PM

Texas began enforcing the sales/use tax on aircraft a year or two ago. It is my understanding that they went back 4 years. If you have purchased or registered an aircraft within the last 5 years, you can probably expect a tap on the shoulder from the tax man.

However, this is a state tax. Counties can do whatever they want on personal property tax.

dav1111 · #3 07-04-2009, 12:42 PM

If the airplane is registered to an indivual vs. a business usually you can go down to the tax office and sign an affidavit that the airplane is not used for business and they will remove it from the tax roll.

Quote:

Originally Posted by AX-O

All,
A friend of mine just received a tax bill from Potter County, TX for his certified aircraft. If you have any information regarding this, can you help him out by providing some info? My understanding was that airplane tax did not apply in TX. Thanks in advance.

Inverted · #4 07-07-2009, 01:16 PM

Isn't there a form somewhere for Texas that states if you bought the kit or parts of the kit from an individual then you don't have to pay tax on those portions? Can someone knowledgeable on the subject chime in?

Mel · #5 07-07-2009, 01:42 PM

Quote:

Originally Posted by Inverted

Isn't there a form somewhere for Texas that states if you bought the kit or parts of the kit from an individual then you don't have to pay tax on those portions? Can someone knowledgeable on the subject chime in?

It's called "Occasional Sale between individuals."
Neither of the parties may hold a tax number or be in a business involving sales. Form 01-917.
Search "occasional sales, TX". Tax rule 3-316.
Limit of 2 occasional sales per year.

Bubblehead · #6 07-07-2009, 07:05 PM

Mel, oh great source of knowledge! I'll be moving my -8 to Texas in the next couple of weeks. Are there any tax issues I need to be aware of? I already paid tax to the wonderful state of Illinois; hopefully I won't have to pay Texas too!

Inverted · #7 07-08-2009, 02:33 PM

Quote:

Originally Posted by Mel

It's called "Occasional Sale between individuals."
Neither of the parties may hold a tax number or be in a business involving sales. Form 01-917.
Search "occasional sales, TX". Tax rule 3-316.
Limit of 2 occasional sales per year.

So there is no form that needs to be filled out by the seller? So if you buy a kit and finish it up and make it airworthy, and the state of Texas comes after you for taxes, you just point them to that section of the tax code?

Mel · #8 07-08-2009, 04:06 PM

Quote:

Originally Posted by Inverted

So there is no form that needs to be filled out by the seller? So if you buy a kit and finish it up and make it airworthy, and the state of Texas comes after you for taxes, you just point them to that section of the tax code?

The seller must sign the form. You will need a copy to show the tax man.

Mel · #9 07-08-2009, 04:07 PM

Quote:

Originally Posted by Bubblehead

Mel, oh great source of knowledge! I'll be moving my -8 to Texas in the next couple of weeks. Are there any tax issues I need to be aware of? I already paid tax to the wonderful state of Illinois; hopefully I won't have to pay Texas too!

If you can show that you have already paid sales/use tax, the Texas tax man should leave you alone.

Bubblehead · #10 07-08-2009, 08:44 PM

I have all the forms in the file. Should be good then! Boxes packed and will pick up rental truck tomorrow. Load on Th/Fri and in Keller TX Sunday afternoon. It will be good to be back in Texas.