[rph142]

Well yesterday was a very sad day. Not two weeks after receiving my aircraft registration the PA revenue service sent me a bill for 6% use tax! So I'm wondering what I need to claim on this form. Obviously the kit price, propellor, radio, and a few other instruments must be claimed, but I bought the engine used and I don't even have the 8k skyview yet. So do I need to pay tax on the engine and the not yet purchased skyview? It looks like I only have a $20k liability at the moment without the engine or 31k with it. Any suggestions?

 

[jsharkey]

2 weeks - PA must be slipping - it was only a couple of days in VT

 

[Snowflake]

I seem to recall others saying that you don't have to pay this until the plane is completed, so you may get away with just notifying them that construction continues and defer it until you're done.

OTOH, if you pay it based on the current value, it would be a lower tax... Is this a one-time tax, or annual?

 

[wilddog]

Start a tax rebellion, don't pay!

 

[tommylewis]

my thought

I wold not post any details on a public forum where the tax folks could monitor. You already gave away more info than you should!

 

[John Ciolino]

Tax Man Cometh

Generally, a use tax is due when you purchase something out of state and the vendor did not collect the state sales tax. The use tax is payable at the time your state income tax is due--4/15. I am no expert, but I would say you owe the 6% immediately on anything you already bought prior to 2011. You would owe the use tax on anything you have bought or will buy in 2011 on 4/15/12. It's nasty but unavoidable,unless you incorporate in Delaware.

John Ciolino
RV-8
N894Y

 

[Bubblehead]

The laws vary a lot from state to state. Be careful. There is a long thread on this topic elsewhere on VAF with conflicting info but it is still good to read. It will at least make you aware of the issues others have dealt with.

 

[rph142]

It sounds like it is a one time tax - a yearly bill would be a deal breaker for me. I will be filling out the form to the best of my ability and sending as many receipts as possible.

 

[Scott Hersha]

Anything you paid sales tax on does not need to be included, whether it was purchased in PA or not. If the engine was purchased as a casual sale from an individual, it does not require paying a sales or 'use' tax. At least that's the way it is in Ohio. You'll need receipts to back up these purchases and any sales taxes you actually paid. It should be a one time only tax, just like you pay when you buy a new car. Those tax collectors know how much these RV's cost and they do monitor these websites - at least our guy in Ohio does.....

 

[Jerry Cochran]

Oregon? Maybe....

You could always move here, the home of all things RV. Despite onerous real estate taxes and horrific state income tax, we enjoy no sales tax and best of all, no stinkin' airplane tax!

 

[Bill Wightman]

Until you have "use" of the airplane, I say no tax is due. Simply because you registered for a N-number doesn't mean you have a flying airplane yet.

Write the tax authority a letter and explain that you won't have use of the airplane or its related components until its airworthy and signed off, and see what they say. Might buy you some time.

 

[Dmadd]

interesting....

You could always move here, the home of all things RV. Despite onerous real estate taxes and horrific state income tax, we enjoy no sales tax and best of all, no stinkin' airplane tax!

 

[gasman]

Well yesterday was a very sad day. Not two weeks after receiving my aircraft registration the PA revenue service sent me a bill for 6% use tax! So I'm wondering what I need to claim on this form. Obviously the kit price, propellor, radio, and a few other instruments must be claimed, but I bought the engine used and I don't even have the 8k skyview yet. So do I need to pay tax on the engine and the not yet purchased skyview? It looks like I only have a $20k liability at the moment without the engine or 31k with it. Any suggestions?

To avoid this issue, you can reserve your N number at any time........ But don't register your airplane till you are ready to use it.

As far as when your taxes are due........ the tax man doesn't care if you ever use the item. If you own it, the taxes are due. Unless you have a re-sale license and you are holding the item for re-sale.

 

[Jkkinz]

Why don't you just give your tax authority a call. They know when and how you are supposed to handle the tax better than any of us. I called mine here in Florida and the lady was very very helpful. Paid the tax due and got the paperwork back. Best of all, no one came around in black helicopters or SUV's to spy on me either.