Tax bill for reserved N-number

[jdeas]

Wow, California is really on the ball! I have already received my first tax notice for my 'reserved' N-number and the threat of a penalty if I don't reply to the assessor.
Anybody else get something like this while you were still building?

[jdeas]

Wow, just got off the phone with the assessors office. Because I reserved an N number and rent a county hangar I must complete their tax paperwork each year with an enclosed letter stating the current status of the project.
Is it just me or is this a little over the top

[Bill Palmer]

Yes, this happened to me several years ago; it was Riverside County. The tax was calculated based on the assessed value of a completed aircraft which was $108K in my case. I had to go to the County Assessor's Office and personally confront the particular assessor who levied the tax. I took my FAA reserved N-number paperwork with me.

The assessor cancelled the tax principle, but charged me interest from the date of his assessment to the date that the assessment was rescinded. I think it was some sort of a face-saving measure. The interest payment was small, so I paid it just to be rid of the problem.

Sometimes, when the counties are desperate for funding, as they are now, they'll try anything to bring in revenue (rather than cut spending).

Bill Palmer

[xavierm]

I also rent a county hangar at Compton Airport. To rent one, you give them your reserved N number.
Once that happens, you get a tax bill. I just call the office and tell them the number is reserved, I also write "No aircraft, I just have a N number reserved for future use", and return the form every year.

[Lemmingman]

I just finished researching this in Arkansas. I'd say Arkansas isn't as automated as California, but essentially the rules are the same. I have "Empannage parts" on my personal property tax assessment.

[Sig600]

Originally Posted by jdeas

Wow, just got off the phone with the assessors office. Because I reserved an N number and rent a county hangar I must complete their tax paperwork each year with an enclosed letter stating the current status of the project.
Is it just me or is this a little over the top

You live in Kalifornia, what did you expect? The states flat broke and they need all of your money they can get their hands on!

[Mel]

It's interesting how a state can tax you on an aircraft that does not exist. How can they put a value on that?
I can build an aircraft out of cardboard, register it, and get that "N" number assigned to it. Doesn't matter whether or not it will pass an airworthiness inspection.
It would serve no practical purpose, but it can be done.

[Bill Wightman]

OK state sent me a notice also, after reserving N# for my RV4, which was still over a year from flying. I wrote them back stating the "airplane" was still incomplete. Never heard back again, and I later found out that OK frequently just drops the request. This was years ago, so maybe things are different now since the state has made such large cuts in budget. We'll see...

[Mel]

Originally Posted by Bill Wightman

OK state sent me a notice also, after reserving N# for my RV4, which was still over a year from flying.

BTW, when you reserve a number, you do not reserve it for any aircraft. You're just reserving the number in your name.
It has no reference to an aircraft.

[wilddog]

I don't think you have an airplane until you have an airworthness certificate. It is just parts without one.