scottmillhouse
Well Known Member
As anyone building recently knows Vans now collects state taxes with all their sales. For Alabama they charge 8%. The problem is that the state rate for plane is 2% and 1-2% country/city so you greatly overpay especially for the big kit purchases. I have gone through the process of satisfying the taxes for the construction of 4 planes over the last 25 years. I was always proactive and scheduled an appointment at the same time applying for registration and always found them cooperative.
For my recent order the tax bill alone is $4800 with $3000 excess charges. I petitioned the state to either reduce or exempt the taxes at this time for these large purchases. They said it is not possible but upon completion they will settle up and refund the difference. They want their taxes collected at the general tax rate since many projects don’t get completed and become wall hangings. So if you are is Alabama and building, PM me when getting completed and I’ll connect you with their airplane tax expert. She appears very helpful and insures me that the state will quickly refund the tax difference.
For my recent order the tax bill alone is $4800 with $3000 excess charges. I petitioned the state to either reduce or exempt the taxes at this time for these large purchases. They said it is not possible but upon completion they will settle up and refund the difference. They want their taxes collected at the general tax rate since many projects don’t get completed and become wall hangings. So if you are is Alabama and building, PM me when getting completed and I’ll connect you with their airplane tax expert. She appears very helpful and insures me that the state will quickly refund the tax difference.