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Taxes

N787KV

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If I purchase an unfinished kit in California and transport my state, am I responsible for any California taxes?
 
Unless your state does not require tax on aircraft parts (remember you are not purchasing an airplane), you may be asked to show you paid tax somewhere along the line before being able to register the plane (assuming you finish it in the same state). The point being that you may have to pay something in one state or another. Do your research...
 
Unless your state does not require tax on aircraft parts (remember you are not purchasing an airplane), you may be asked to show you paid tax somewhere along the line before being able to register the plane (assuming you finish it in the same state). The point being that you may have to pay something in one state or another. Do your research...
By "register", I assume you mean "register with the state if that state sadly requires registration of aircraft", not FAA registration. Because the FAA registration has absolutely nothing to do with state tax regulations.
 
By "register", I assume you mean "register with the state if that state sadly requires registration of aircraft", not FAA registration. Because the FAA registration has absolutely nothing to do with state tax regulations.
When you register it with the FAA, your state tax officials will come calling. They monitor the FAA registrations and will come looking for their tribute. Been there, done that! Keep good records of every dime you spend, and how much of it you paid taxes on at purchase.
 
Everybody's giving good advice, but I'll add that it really depends on where you live. Kansas for example exempts experimental and antique airplanes from property tax.

It will absolutely show up on the tax rolls as soon as you get the FAA registration so you need to find out the rules in your state and plan accordingly.
 
I now live in a state that doesn't charge a tax on experimentals. My concern is California wanting a piece of the action when I buy the project.
 
I now live in a state that doesn't charge a tax on experimentals. My concern is California wanting a piece of the action when I buy the project.
CA has a use tax (sales tax for out of state buyers). Slight variation between counties, but expect around 9%.
Edit. Sorry, I need more sleep. CA use tax applies to California residents’ out of state purchases. Not what you asked.
 
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I do NOT live in Kalifornia but I did for 30-years. I am not a tax guy but I did stay in a Holiday Inn Express at some time in the past.

IF the person you are buying from has a license to collect sales tax, you will be required to pay sales tax to Kalifornia. IF you buy aircraft parts from Aircraft Spruce in Kalifornia from your home, you will pay SALES TAX in your home state not the state the part was purchased from. IF you buy from Aircraft Spruce in Kalifornia at their store, you will pay Kalifornia sales tax because you are buying something in that state. Van's Aircraft is in Oregon. When you purchase a kit from them in Oregon, you pay sales tax for the state you live in because it is shipped out of state. IF you pick the kit up in Oregon, you most likely will not pay Oregon sales tax because Oregon does not have a sales tax but you will still need to pay use tax in the state you live in.

Answer: It depends on who and how you are paying. Most likely you will only be liable for USE tax when you get home and file your state tax return.
 
I do NOT live in Kalifornia but I did for 30-years. I am not a tax guy but I did stay in a Holiday Inn Express at some time in the past.

IF the person you are buying from has a license to collect sales tax, you will be required to pay sales tax to Kalifornia. IF you buy aircraft parts from Aircraft Spruce in Kalifornia from your home, you will pay SALES TAX in your home state not the state the part was purchased from. IF you buy from Aircraft Spruce in Kalifornia at their store, you will pay Kalifornia sales tax because you are buying something in that state. Van's Aircraft is in Oregon. When you purchase a kit from them in Oregon, you pay sales tax for the state you live in because it is shipped out of state. IF you pick the kit up in Oregon, you most likely will not pay Oregon sales tax because Oregon does not have a sales tax but you will still need to pay use tax in the state you live in.

Answer: It depends on who and how you are paying. Most likely you will only be liable for USE tax when you get home and file your state tax return.
I like the "K". Hope you got a restful night when you stayed at a Holiday Inn Express at some time in the past.
 
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