"Importing" an RV into Washington state (from another state)

[Sparrowhwk]

As part of the "decision matrix" to determine if I keep or sell my RV as a result of a move to the Seattle area, I wanted to check on the State laws regarding bringing an RV into Washington from out of state.
I've been looking through the Washington DOT website and this is what I have gleaned:

- Upon first bringing the aircraft into the state - I will be required to pay a "use tax". What kind of bill can I expect for an RV-8?? I got the impression it's a certain percentage of what the state believe to be the "fair market value". Does anyone have any recent experience that I might get an idea of this cost?
For additional context, I don't have a receipt for sales or use tax paid in any other state as I bought the aircraft from the builder through a private (casual) sale which in that state did not require the payment of taxes, nor was it required in the state of current registration.
- It looks like there is a $35 Registration fee every year.

Are there any other additional one time or annual taxes/fees that I am not aware of?

Any other tips or considerations about trying to bring the aircraft into the state - I posted a little while ago asking about hangarage which did not sound encouraging. So I'm trying to get the most complete picture of what I would be facing in order to make the most informed decision about whether keeping or selling the RV is best.

Thanks

 

[rbenua]

I am not a tax lawyer and you should probably consult one, but I believe WA's use tax does not apply to your RV if you purchased it more than 90 days before you move to WA. To my understanding, the general intent of use taxes is as "sales tax for residents of <state>, but you can't dodge it by ordering stuff online or buying stuff across the border and bringing it in", not "tax paid on all your existing property if you move into a state".

Specifically, I think that the third paragraph on https://apps.leg.wa.gov/rcw/default.aspx?cite=82.12.0251 is what exempts you from use tax on "household goods, including digital goods, and digital codes, personal effects, private motor vehicles, and services rendered in respect to such property" that you acquired more than 90 days before moving to WA.

Oddly, it explicitly rules motor homes out of that exclusion, so I guess you have to be careful that they don't think it's the other kind of RV!

 

[Sparrowhwk]

Thanks Rick, I have heard of that exemption possibly being applied to boats, but I did not see it in the Aircraft Registration section of the website.
I'll see if I can get in touch with the person listed on their website and ask the question - then hope for the correct answer. It seems a niche issue and may be tricky to find a tax lawyer familiar with this situation.
Open to suggestions/recommendations.
Thanks again for the help.

 

[[email protected]]

Thanks Rick, I have heard of that exemption possibly being applied to boats, but I did not see it in the Aircraft Registration section of the website.
I'll see if I can get in touch with the person listed on their website and ask the question - then hope for the correct answer. It seems a niche issue and may be tricky to find a tax lawyer familiar with this situation.
Open to suggestions/recommendations.
Thanks again for the help.

I live in Washington state and I can almost guarantee you will have to pay Sales/use tax on the purchase price or appraised price of your airplane. You bought the aircraft built so that is your starting point for the value. But, you can make a fake bill of sale for lesser amount cause there are no witnesses here. I bought a Washington registered RV-6 A a few years ago and had to pay sales tax on it.
They will get you when you register it.
If you lived out of state and moved here and bought a residence you are required to pay sales tax on all your vehicles. And unless the law has changed that includes aircraft.
I would call the state sales/use tax division.
But you own the aircraft now. If you had paid some sort of sales/use tax when you bought it then the state will deduct that amount from the tax owed.
Seattle has a quite high sales tax.
What is it now 10.1 percent or so times the price your aircraft. So you see the reason for creating a fake bill of sale.
You will want it to say something like" as is where is no guarantees implied or offered.
Like you bought a basket case that needed a bunch of repairs to arrive a the lower value.
This state loves money and burns through it like water.
I used to build house for a living and if I build you a house on your land I had to send the state a check for the sales tax value of the contract price of the house.
Now that is a tax bill to pay on a million dollar house.
my luck changes, """BUT""" I still have to pay the the tax man. FIXIT

 

[Mel]

I'm not fond taxes as much as the next guy, but let's not encourage "creating a fake bill of sale for a lesser amount"
.
Creating a fake bill of sale for a lesser amount is just "plane & simple" FRAUD!

 

[RV8JD]

You will have to pay the Use Tax unless you fall under one of the exemptions noted below (and you don’t appear to). And WA State is onto ‘fake’ Bill of Sale. They do not necessarily take a BOS at face value, and are pretty knowledgable about aircraft values (see below regarding ‘fair market value').

Ref: https://dor.wa.gov/taxes-rates/other-taxes/aircraft-excise-tax

Some snippets:

"How is use tax determined?​

Use tax is calculated by multiplying the fair market value (FMV) of the aircraft by the use tax rate. The FMV is determined as nearly as possible according to the retail selling price of similar aircraft in the same condition.​

​

When the purchase price reflects the FMV of an aircraft, use tax is based on what you paid. The purchase price is accepted as the aircraft's value if the purchase price is no more than 20% below the fair market value, or when the fair market value is less than $7,500.​

Sales or Use​

Tax exemptions​

• Aircraft acquired by gift if the donor paid Washington retail sales or use tax on the aircraft. However, a credit for tax paid in another jurisdiction is available if documentation of tax paid is provided.
• Aircraft brought into Washington by nonresidents for their use or enjoyment while temporarily within this state. Temporarily means no more than 90 days in any continuous 12-month period.
• Aircraft purchased or used primarily (more than 50 percent of the time) for interstate or foreign commerce by transporting persons or property for hire.
• Aircraft purchased exclusively for the purpose of renting or leasing on a bare-rental basis, i.e., without a pilot. In this case, the lessor must collect retail sales tax on the lease payments from the lessee.
• Large private aircraft (over 41,000 pounds) sold to nonresidents if the aircraft is not required to be registered in the state under chapter 47.68 RCW.
• Sales of or charges made for labor and services rendered in respect to repairing, cleaning, altering, or improving large private airplanes owned by nonresidents of this state."

Payment of Tax​

If you bought your aircraft from a Washington retailer, you should have paid sales tax at the time of the purchase. If you bought your aircraft in another state or from a private party, you may not have paid sales tax. In this case, you are liable for use tax unless one of the exemptions apply.​

​

If you paid retail sales tax to another state, you may be eligible for a credit against Washington’s use tax. Use tax can be paid at a Department of Revenue office, by mail, or by submitting your bill of sale to [email protected] (additional documents may be requested). Once paid, the Department of Revenue will issue a Declaration of Use Tax. This document is a receipt of tax paid and should be provided to the Washington State Department of Transportation (WSDOT) Aviation Division."​

​

The tax rate varies from city to city, so plan between 9.5% to 10.5%. Welcome to WA State!

 

[JonJay]

When you register your aircraft it triggers the tax man. I always followed the rules but know folks that simply did not. Their theory being the State doesn’t have the resources to enforce.
However, should you not register the aircraft or otherwise pay the use tax, and get caught, which does happen, they will come at you with penalties and interest, and they can be staggering. Don’t pay those and they’ll put a lean on your house.