flyerfly said:And now my vent... Taxes in general? Pay for what you use and the services you want...no more...END of venting session.![]()
Jekyll said:That was me in another thread (maybe on another site)
That was for sales tax, not personal property tax. I took a loan and NAFCO had me sign a FAA registration form which they then mailed in. About 6 weeks later, I got a letter from the state saying the FAA notified them of a new aircraft registration and that they demanded a 6% sales tax. I sent in the papers and tax for the amount I had in the kit at the time and they were happy. I won't be registering it later after all the parts are installed.
My kit is still under construction but it is registered. I no longer need to keep renewing my N number reservation. I have my AC Form 8050-3 Certificate of Aircraft Registration in my hand. Now if they had just sent the Airworthiness Certificate along with it.....
Jekyll
Rick_A said:John, I'm asking regarding initial registration - not selling in the future. It will probably be the end of '07 before the plane is ready for it's first flight. I was thinking about registering it now, because there is the chance that I will move to Florida in '08 and I would be liable for Florida sales tax if I own the plane for less than 6 months - which will likely be tied to the registration date.
AX-O said:Like many of you I am building an RV-8. The state of CA wants 7.25% tax on the sale. My dad lives in Texas and will be on the insurance of the plane and will keep it there for use a few weeks. If you live in Texas or California, can tell me about your experience with buying and aircraft. Thanks.
I called the state BOE regarding this very issue and I was told I have two choices. Pay as you go, or wait until the end.
They said if chose the pay as I go method to make sure to keep excellent records (copies) as it possible for them to misapply a payment to another account (or not link it to your n-number) and that in the end I might need to prove that payments have already been made.
I asked if I waited would I get hit with penalties, and I was told no, but keep in mind this is the state we are talking about and anything can change. If you choose this method it will likely take a while for them to catch up to you with a request for information (sometimes 12-24 months). It took them almost two years to bill me the sales tax on my last aircraft purchase.
In either case, you will pay a use tax to the state only on the purchase price of any parts you purchased out of state, or from out of state vendors, where CA sales tax wasn't already collected.
Your county will also levy a personal property tax annually, but that will be on the fair market value of the completed airplane once flying and registered.
Let me clarify... the reason that it might be misapplied (I probably should have said NOT applied) is that technically you don't have a valid n-number until the plane is officially registered -- reserved n-numbers don't count. The state gets records from the Feds only for registered aircraft, not reserved n-numbers. In fact, I might hesitate to give them one (an n-number) until it is registered... instead give them a serial number you make up. What can happen is they may not automatically apply all prior payments to your file once you do register the aircraft, because they can't assign or track payments to a reserved n-number. The records you keep are needed in case you have to show proof that payments have already been made. Again, give it a serial number and make sure all payments are made against the same number. But please, if you have any doubts or questions don't take my word for it, call the BOE aircraft registration division, they have always been helpful to me. My advice is only as good as how much you paid for it... $0.I am so sick of this kind of BS from various places, especially government agencies...it's "possible" they could misapply a payment to another account? What the...?
Me too. Just like your car or your house, you have the privilege of paying it annually. The good news is that is typically is only 1+%, rather than the 8.75% one time use tax I will pay (for my county).I don't mind so much (okay, well, I do) paying sales tax. But the personal property/luxury tax thing chaps my hide a bit...
LET'S SEE WHAT 1% LOOKS LIKE........Me too. Just like your car or your house, you have the privilege of paying it annually. The good news is that is typically is only 1+%, rather than the 8.75% one time use tax I will pay (for my county).![]()
I called the state BOE regarding this very issue and I was told I have two choices. Pay as you go, or wait until the end.
They said if chose the pay as I go method to make sure to keep excellent records (copies) as it possible for them to misapply a payment to another account (or not link it to your n-number) and that in the end I might need to prove that payments have already been made.
Depressing isn't it. Here, the city is even nice enough to hand over the property tax bill for the hangar if you are renting a hangar.LET'S SEE WHAT 1% LOOKS LIKE........
Low end used RV $60,000.00........ tax $600.00 = 21 hours of fuel.
High end RV $100,000.00........ tax $1000.00 =36 hours of fuel.
RV 10 $200,000.00......... tax $2000.00 =42 hours of fuel.
And this will apply even if you never fly the aircraft.![]()
LET'S SEE WHAT 1% LOOKS LIKE........
Low end used RV $60,000.00........ tax $600.00 = 21 hours of fuel.
High end RV $100,000.00........ tax $1000.00 =36 hours of fuel.
RV 10 $200,000.00......... tax $2000.00 =42 hours of fuel.
And this will apply even if you never fly the aircraft.![]()
LMAO! Yea, those people have got to go!Yeah, like all the taupe-lovers