Sales tax
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.
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