[dspender]

Know that I have my 10 registration I am anticipating an opportunity to Pay state sales tax. What is the usual expectation? Is it the kit pricing from vans only or is it also the avionics and other options I may have added?

 

[RV8 Tom]

Depending on your state's tax laws, more than likely it will be on anything your purchased NEW and out of state from a retail seller.

 

[GaryK]

MI Taxes

The first plane I built 20 years ago MI required all the receipts. Kit, Engine, Avionics, Paint, et.....

The last 2 planes they changed the requirement, they didn't want any receipts. They wanted the value of the plane. There are enough RV10's out there now that they can bounce the number you tell them up against others for sale. If you were building something somewhat unique it's hard for them to check the value. Not so much with any RV.

Gary
RV10
N100JV

 

[9GT]

The State of Michigan caught up to me shortly after I obtained my AW certificate. They sent out a couple forms for me to fill out and required photo copies of all receipts for purchases. Sent in the completed package along with a big check and I never heard from them again.

 

[GaryK]

MI Taxes

I guess it depends on who you talk to, they told me they didn't want any receipts for the last 2 builds. Taxes were based on the value of the completed aircraft.

Best bet is to call them and see what they will accept.

Gary

 

[9GT]

The State of Michigan caught up to me shortly after I obtained my AW certificate. They sent out a couple forms for me to fill out and required photo copies of all receipts for purchases. Sent in the completed package along with a big check and I never heard from them again. That was early 2014.

 

[dspender]

I kind of knew the answer but was hoping for some gift of grace from the State. Everything said makes sense.

 

[9GT]

I kind of knew the answer but was hoping for some gift of grace from the State. Everything said makes sense.

Hopefully they won't tag you with a penalty for not declaring your non-taxed out of state purchases on your yearly state tax forms. IIRC, they mentioned somewhere that that may or may not happen.

 

[Kyle Boatright]

The first plane I built 20 years ago MI required all the receipts. Kit, Engine, Avionics, Paint, et.....

The last 2 planes they changed the requirement, they didn't want any receipts. They wanted the value of the plane. There are enough RV10's out there now that they can bounce the number you tell them up against others for sale. If you were building something somewhat unique it's hard for them to check the value. Not so much with any RV.

Gary
RV10
N100JV

Be careful allowing someone to determine the value of an airplane by looking at comparable airplane on the web or in Trade-a-Plane.

1) Not too many airplanes sell at list price. Many don't sell close to list.

2) The "for sale" listings are over-populated by over-priced aircraft which never sell and therefore are listed for a LONG time. The appropriately priced airplanes either sell locally, or sell quickly after being listed. Either way, they aren't in the "for sale" pool very long.

 

[texdog]

Find a tax friendly state, Delaware, New Mexico, Wyomimg. Delaware and Wyoming LLC's work great.

 

[lr172]

Find a tax friendly state, Delaware, New Mexico, Wyomimg. Delaware and Wyoming LLC's work great.

That doesn't work everywhere. If you have a plane in Illinois more than 30 days, they expect you to pay the tax. It is a use tax, not a sales tax. They didn't catch me via my FAA registration or A/W. They apparently obligate the in state airports to report the tail numbers of every resident plane. They then compare that to state aircraft registration logs. If you don't exist, they grab the address from the FAA logs and send you a picture of their out-streched hand. Ill requires every plane to be registered and they won't give you the registration without the tax collected.

Larry