Aircraft Sales Tax

[Marlin Nussbaum]

How does one determine the value of your aircraft for the purpose of taxes? I live in Illinois but many other states also have aircraft sales tax. If you live in a state without state sales taxes count your blessings. Illinois has a 6.25% on the value of the aircraft. Does anyone have experience in this area?

Thanks, Marlin

[cjensen]

marlin,

first, are you currently building, or are you flying?

i called a tax guy that works for the IDOR, and he told me that i can pay the tax using form ST-44 (downloadable from the IDOR website) for each subkit that i order. it's not called sales tax unless you purchased a previously built RV in the state of IL. your parts are the subject of Illinois Use Tax, and you have until the end of the second month after purchase to pay it without penalties. i've sent in $448 for use tax on the tail and wing kits. keep the record of payment, and in the end when it gets registered, you've already paid your taxes.

if you've purchased a previously built airplane, just add up the cost of the kit, engine, and avionics, and that's what you pay on.

if you've built, but are just now paying, be careful of penalties...

[RV9AFlyer]

Yes, when I was sitting in the State Excise Tax Office after they contacted me by mail to inform me nicely that they noticed our new FAA registration and that we now need to pay the State Excise Tax of 8.9% to get a State Registration card ($52 per year), the gal behind the desk asked me when the aircraft was completed, so I looked up at her quickly and said "today"! That's my story, and I'm sticking with it.

John

[Rosie]

This thread addresses state tax but I wanted to include the property tax thread for archive purposes, Rosie