California sales tax may apply to YOU!

[dwilson]

Recently spoke with Tom Alston about California sales tax.

I live in Washington. I bought and am building my RV-10 in Washington. I don't own anything in California. I don't have kids in school in California.

BUT, if I fly my newly built airplane into California airspace within the first year, California will consider me a resident and will apply their sales tax to my airplane!!!!!

Guess I won't be going to Disneyland any time soon!!!!!!!
Guess I can't fly down for the day and visit Mike S. at Cameron park. BUMMER!

[FredMagare]

I hadn't heard that but I do own income property in California.... The California legislature passed a "law" several years ago essentially helping themselves to an INTEREST-FREE LOAN of my money! The state's financial woes have it underhandedly trying to reach into whoever's pocket it can. I grew-up in California (San Jose) but I'm much happier in TEXAS!

[longranger]

Originally Posted by dwilson

BUT, if I fly my newly built airplane into California airspace within the first year, California will consider me a resident and will apply their sales tax to my airplane!!!!!

How are they gonna know?

[PCHunt]

Originally Posted by dwilson

Recently spoke with Tom Alston about California sales tax.

I live in Washington. I bought and am building my RV-10 in Washington. I don't own anything in California. I don't have kids in school in California.

BUT, if I fly my newly built airplane into California airspace within the first year, California will consider me a resident and will apply their sales tax to my airplane!!!!!

Guess I won't be going to Disneyland any time soon!!!!!!!
Guess I can't fly down for the day and visit Mike S. at Cameron park. BUMMER!

That doesn't sound right to me. Who is Tom Alston? Can this be confirmed? If true, all should know. If not true, it will scare folks from flying into beautiful CA.

The way I understand it, if you really do live in CA, and you buy a plane outside of CA, you owe sales tax on it unless you keep it outside of CA for a year, plus some other requirements.

I don't think that rule applies to non-CA residents.

Disclaimer: I'm not a lawyer, nor do I want to be. I didn't sleep in any motel/hotel last night. YMMV, and ignore everything I just said! I have no idea what I am talking about. (You get the idea.)

[dwilson]

I don't have any interest in this guys business, but I have an interest in flying and taxes!

http://www.aeromarinetaxpros.com

Check out the video presentation on his site.

[Buggsy2]

Originally Posted by dwilson

BUT, if I fly my newly built airplane into California airspace within the first year, California will consider me a resident and will apply their sales tax to my airplane!!!!!

Uh, sure. Hey, would you like to buy a bridge I own in California? I need cash so I'll sell it cheap...it's a toll bridge so great cash flow. You may have seen it in pictures, painted a reddish-orange color...

More seriously, for decades rich Californians bought yachts and aircraft and parked them out-of-state for 6 months to avoid paying sales tax. Finally a few years ago the Legislature upped the time to one year. That has got turned into an urban legend apparently.

[craigvince]

What Tom was talking about was California residents who buy an airplane out of state, or register an airplane out of state, cannot bring the plane into California without risking sales/use tax. It doesn't apply to transient visitors.

I am an aircraft dealer and broker, and I attend Tom's seminars annually to keep up on new tax laws and regulations. Check back with him for clarification.

[gasman]

Originally Posted by dwilson

Recently spoke with Tom Alston about California sales tax.

I live in Washington. I bought and am building my RV-10 in Washington. I don't own anything in California. I don't have kids in school in California.

BUT, if I fly my newly built airplane into California airspace within the first year, California will consider me a resident and will apply their sales tax to my airplane!!!!!

Guess I won't be going to Disneyland any time soon!!!!!!!
Guess I can't fly down for the day and visit Mike S. at Cameron park. BUMMER!

It's called THE ROBBENHOOD EFFECT!

Take from the rich aircraft owners that fly in and give it to the people that walk in
and are considered residents immediately.....................

[Bob Axsom]

I don't want to know anything about the tax people but I do know they are agressive. I used to live in Orange County and flew to Los Angeles each day. Every year of so I would get a tax bill from Los Angeles and I had to send them documentation to prove that I paid the tax to Orange county. In other words they are actively trying to catch people to tax.

Bob Axsom

[kevinh]

Originally Posted by gasman

Please - no politics posts on VAF.