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Texas Hires 20 TAX Grab

It is perfectly legal to NOT pay any more tax than you owe.

It is perfectly stupid to pay more than you owe, if you can legally avoid it.

Dont be stupid.

As was stated earlier, the politicians have more than enough of OUR money.

They just need to be taught how to manage it wisely. The proper way to teach a politician is by voting.

Mike
 
texas tax

i got the same letter last week on my cessna 172 i bought in 03 and sold in 04 or 05?? From what i read, since i bought from a casual seller (whom i have not been able to contact now), i think/feel i fall under that exemption. The purchase also took place just over 4 years ago.

Since i also used it primarily for training, then that may be another exemption.

I called the austin office today to discuss and ask questions and the girl i got through to was clueless. Did not know what i was talking about. Granted i found the phone number off their website not from the letter sent to me.

jeff h
Austin
 
Big purchase after the fact

RV7Factory said:
I could be wrong here (I don't live in TX), but a Use (sales) Tax is typically calculated solely on the purchase price (amount on receipt) of the kits and parts you purchase out of state. When you register the aircraft its fair market value is irrelevant to the Use Tax calculation. You simply pay tax on what you paid for the kits and parts, regardless of what you call the aircraft when you register it.
:rolleyes:
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What about stuff you purchase after the airworthiness inspection? Something to think about, a good reason to stay plane Jane VFR at first.
 
kevinsrv7.com said:
What about stuff you purchase after the airworthiness inspection? Something to think about, a good reason to stay plane Jane VFR at first.
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Speaking only of CA, you are required to pay use tax on ANYTHING you purchase from an out of state vendor who didn't collect CA sales tax. For example, that universal remote I ordered from Amazon last month that was shipped without me being charged sales tax... I am supposed to fill out a form and send the state a check. Um, yea right, I'll get right on that. So that fancy EFIS you order from an out of state vendor six months later is technically still subject to use tax. Might be different in TX.
 
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Its the same drill in Texas. If you buy out of state you "should " be paying the use tax when the goods are shipped to Texas.

Mark
N410MR
Austin, Texas
 
sleeping (tax) dog

This sales tax out of state (mail order) is not really on the books in many states and others its kind of wishful thinking. The ones that claim they are due state tax for something that you bought OUTSIDE the state is something they just can't enforce (yet). So basically its like going 5 mph over the speed limit, no one gets excited about it. There will be a show-down but right now its a sleeping dog.

When you think about it they really don't have much to stand on with out of state sales tax. In the past it did not matter much because eBay and mail order was not a big thing. Now most of us buy stuff out of state, and we do so because of no tax.

It just happens the stuff we buy we turn into a vehicle, an airplane that has value, which is federally registered, so they can get us.

It's going to get ugly. :eek:
 
What Texas Tax have you paid?

I have a tax due by Oct 4 and need to send them something I guess. I'm thinking just send them the kit price and bill of sale from vans if I can find it and a check for the 8.25%, any thoughts from fellow Texans :confused:
 
Walt said:
I have a tax due by Oct 4 and need to send them something I guess. I'm thinking just send them the kit price and bill of sale from vans if I can find it and a check for the 8.25%, any thoughts from fellow Texans :confused:
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How about sending them a cow chip? :D

On second thought, maybe not....

TODR
 
This is my Texas Tax experience: I purchase a T210 from an A/C dealer in Louisiana and decided to pay the Lousiana tax which I believe was 4% at the time. I knew that Texas would come after me for the balance once they found out about the purchase. I just took a chance that with luck I might slip by. Well, about 2 years later I get a tax notice from Austin. The auditor was pleasant and negociating was good. The penalty was waived and I paid the difference in interest between Louisiana and Texas. Since I based the plane at a county airport, I paid the 6.25% state rate. No local tax was collected.

This was for a dealer purchase. Had the purchase been made from private individual the tax would not have been due.

JF
 
Tax

It's not very often that one can "brag" about the "Commonwealth of Massachusetts", but in this case, all aircraft and parts are exempt from sales/use tax. They do require an annual registration (and an ugly sticker) of either $100 (most RV's up to 2000 lbs.) or $165 (up to 3500 lbs.).

I bought my RV-4 while living in PA...and got a FRAUD letter of investigation 2 weeks after getting the thing home. The check was sent immediately..

Mitch Garner
RV-4 flying
N10TH
 
Have any of you fellow Texans gotten tax notice in the past 3-4 months? If so, when was the airplane purchased?

Trying to figure out how far along the comptrollers office is backed up on registrations.
 
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Craig,
If your RV4 was purchased from a private individual and not a dealer it is considered a "casual" sale and there is no Texas sales tax due. I'll try to check with a friend today and see if there is a form that you can have your seller sign now so when the the state writes you for the taxes you'll be a step ahead.

Jim
RV4 N934RV
 
X18 said:
Craig,
If your RV4 was purchased from a private individual and not a dealer it is considered a "casual" sale and there is no Texas sales tax due. I'll try to check with a friend today and see if there is a form that you can have your seller sign now so when the the state writes you for the taxes you'll be a step ahead.
Jim
RV4 N934RV
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Thanks for the offer of assistance Jim, but I'm aware of the casual sale exemption and have all the necessary forms. I'm strictly trying to find out how far along year wise the State is in sending tax notices. This isn't the only airplane I've bought and my curiosity is related to another purchase. ;)
 
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There's a good chance that the sales tax deduction for Texans will be taken away, so paying this year might be better than waiting until they catch you and the deduction is lost.
 
I have dealt with the State of Texas on sales tax audits, etc. They are generally pretty easy to get along with. If you read their literature, it scares the **** out of you, but just be congenial, don;t say anymore than you have to, be forgetful, but honest. Yes, you will have to pay tax, but it won;t be as bad as you think. Most people give more information than they have to. If you can build any kind of rapport with the agent, it is a real plus.
 
Mississippi has a sales/use tax and an annual registration.

The annual registration fee ($20) goes to the county in which you live as does a large part of the sales/use tax.


I keep my plane at an airport in a community of 12,000 people where there are about 12 other planes only half of which fly on a regular basis.

I paid the sales tax and my annual fee.

In return every year the local city and county governments give us $20,000 a year to operate the airport and they also pay matching funds to the state and fed for airport improvements.

Over the last 5 years our taxes and fees have gotten the 6 of us who fly regularly a 5000' paved runway with an ILS, a new self serve fuel farm, new taxiways so we do not have to back taxi, refurbished hangars, onsite weather, a golfcart, new bushog and tractor, a part time maintenance guy/custodian and a subsidy for the FBO to help keep fuel prices down.

We also have the pleasure of occassionly seeing Britney Spears when she flys home to go to her favorite hamburger stand although she has gotten a bit chubbier over the years.

We have gotten far more benefit than we have paid in taxes.

Pay the tax, fly the plane, and be happy. At least in Texas they don't also whack you with income tax.
 
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Hate to bring this thread back to the top, but it looks like Texas is mailing out those nice little letters again.

A buddy of mine (who has since moved to Oklahoma) just got one on the Pietenpol he purchased back in April of 2005.
 
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