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doctornigel

Active Member
Hello all! I have been lurking for a while, but now my RV-10 is on order. I'm sure I'll have lots of questions for this very knowledgable board. Thanks in advance.

First question, what about state sales tax on the purchase. What is the cheapest way to legally pay, as you go on the parts or at the end? Is there any penalty if you pay when it's registered? Thanks
 
Depends on your State

In New Mexico your registration fees are based on gross weight. I had to pay a whopping $36!

My dad is building a -7A in Michigan and I believe he has to pay a leisure tax of sorts based on value. I would imagine he can claim as he goes on his annual tax return to avoid a lump sum. (???)

You should research what your state requires.
 
In Idaho I registered the airplane when I got the QB kit and was just taxed on that part of the purchase. If you wait until its finished then the tax would have been on the whole thing. Kinda cheating but if you bought a basket case airplane all you get taxed on is the initial purchase price not what the airplane is worth after you finish restoring it. By the way Doc, if you need a really good implant tech give me a shout. Don
 
In Indiana, I waited until registry and they taxed me on the parts. They never tax on the total value, only your cost plus a small tax based on weight. The penalty was small for waiting, not worth the work of doing it as you go along. Compared with buying a car here with HUGE license fees (sometimes into four figures!) plus sales tax it was more than fair. Your state may vary.

Bob Kelly
 
Don't forget to do a search on "Sales Tax" in the forums search function....there have been a LOT of threads before that will give you hours of enjoyable reading.....;)
 
After reading past posts and going on-line for Florida tax guidlines this is what I have gleamed.

I'm going to have to pay sales tax at least on my kit, Florida doesn't require tax on engine and electronics when they are part of maintenance. So I may or may not have to pay tax on those (probably may).

I'm going to pay tax at the end of each year on the kit parts bought that year, I'm going to keep records, and when I register the plane in Florida, I'm going to make a payment for something at the same time I send in copies of payments made so far.

Hopefully that will keep me outta the penalty box. Any thoughts? Thanks
 
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