Another newbie question

[AX-O]

I am about to place my order for a tail kit (-8). Does Vans charge tax for the purchase if you live out of state? Also do they help you with shipping or are you on your own to find a carrier?

[L.Adamson]

Originally Posted by AX-O

I am about to place my order for a tail kit (-8). Does Vans charge tax for the purchase if you live out of state? Also do they help you with shipping or are you on your own to find a carrier?

No tax, and they help with the shipping. You might have to deal with a state tax later. Varies with state.

[AX-O]

I am in california.

[osxuser]

State tax only when it becomes an airplane... which is after it is registered. No sales tax.

[szicree]

Actually, I believe that the law requires us to pay use tax on those things that we order from out-of-state and use in-state. Whether people obey, or even know about, this law is another matter. As far as the plane goes, you can pay as you go or fork it over when it's done.

[Jekyll]

Here's what happened to me: I had reserved an N number when I started my empanage. When it came time to buy the kit (QB) I went to NAFCO for a loan (great folks to work with). Part of thier application and approval process was filling out and signing an FAA registration card (NAFCO required me to have a reserved number prior to securing the loan). I didn't think all that much about the registration card at the time but, about 3 months after I got the loan, I recieved a polite but stern letter from Pennsylvania stating the FAA had just notified them I had registered an aircraft in PA. They demanded 6% of the total sales cost, including shipping and they wanted it within 2 weeks. Well, I was infuriated at having the State shove my face against the wall and reach for my wallet but after I thought about it for awhile, I realized NAFCO had helped me in the long run: now the paperwork has been submitted and the FAA wont' be notifying the State again when I complete the RV so the State won't be comming back after I add engine, prop and avionics. For them, the sale has been completed and they have collected thier tax.

The lessons here: If you take a loan, you may get the same response from your state. Be preparred to fork over several thousand dollars at thier time of choosing. Have it in your budget.

Register early and pay tax early on a smaller amount.

A friend set up a corporation to hold his aircraft to avoid paying sales tax and this works OK however, he must pay an annual fee of $180 to Delaware to maintain the corporation. Do the math and see which method will work best for you.

Jekyll

[BillC]

In California, not only will you have to pay sales tax sooner or later(7.75% in San Diego) but, you will have to pay an annual 1% of apparised value (property Tax). Tax board determines value based on what it finds in ads such as trade-a-plane. I have been paying sales tax as I buy kits so as to lessen the shock.

[osxuser]

Register when the airframe is done is my plan.