When to register?

[Brantel]

I have received my documentation package from Vans. I am going E-LSA. Is there any reason not to go ahead and send in the application for registration?

I see conflicting info on this online.

 

[Mel]

I have received my documentation package from Vans. I am going E-LSA. Is there any reason not to go ahead and send in the application for registration?

I see conflicting info on this online.

You should NOT register the aircraft until you are getting close to finishing. Soooooo many people register their aircraft early and end up not finishing for one reason or another. Illness, death, burn out, etc.

I know that you don't think any of these will happen to you, but neither did the many who registered too early.

Also in some states, registration gets the tax man's attention.

Just my 2 and 1/2 cents worth.

 

[Ben Ellis]

You should NOT register the aircraft until you are getting close to finishing. Soooooo many people register their aircraft early and end up not finishing for one reason or another. Illness, death, burn out, etc.

I know that you don't think any of these will happen to you, but neither did the many who registered too early.

What happens if you need to get rid of your kit after you have registered?

 

[Ironflight]

Just a data point for you - I have a builder I am communicating with to do his inspection, and he has had his registration material in for six weeks and hasn’t heard back. As recently as a couple months ago, I was having folks get their (initial) registrations back in ten days, so there must be a backlog. And if we have a shutdown, all bets are off as I don’t Aircraft Registration is a critical function……

Don’t know how close you are to inspection, but I am of the camp to not register too early, if for no other reason than to keep the state tax authorities off your back until it is flying….

 

[David Grady]

I have received my documentation package from Vans. I am going E-LSA. Is there any reason not to go ahead and send in the application for registration?

I see conflicting info on this online.

I recently registered. The nice lady in Oklahoma City said they are currently processing Registrations from mid-July. Note: You will need your Registration Card in hand BEFORE you can start the Airworthiness Certification process --- so work that into your timeline.

On state sales/use tax, I'd suggest you hammer around on your own state's appropriate web site to understand what's in your future as far as Taxes and Fees for Registering your plane in that state.

Have an N Number reserved?

 

[Brantel]

I recently registered. The nice lady in Oklahoma City said they are currently processing Registrations from mid-July. Note: You will need your Registration Card in hand BEFORE you can start the Airworthiness Certification process --- so work that into your timeline.

On state sales/use tax, I'd suggest you hammer around on your own state's appropriate web site to understand what's in your future as far as Taxes and Fees for Registering your plane in that state.

Have an N Number reserved?

Due to Vans starting to charge my states sales tax, I had already paid over half of the sales tax. Today I filed and paid the use tax for the kits that I did not pay thru Vans. No additional fees in TN.

I learned the lesson the hard way back when I built the 7 that it was better to be pro active in paying the tax than to wait for them to come after you.

Yes, I have had an N number reserved since I started the build.

 

[mbell]

Due to Vans starting to charge my states sales tax, I had already paid over half of the sales tax. Today I filed and paid the use tax for the kits that I did not pay thru Vans. No additional fees in TN.

I learned the lesson the hard way back when I built the 7 that it was better to be pro active in paying the tax than to wait for them to come after you.

Yes, I have had an N number reserved since I started the build.

The Aerospace Report ladies said ELSA registrations are "priority". If you have them file it they will walk it across the street clearly marked priority. I got mine in a day or so. The Van's end of it took a month.

 

[rcarsey]

When you register, that usually kicks off your state’s tax department to start asking where their money is. May not be a big deal these days as Vans is collecting your state’s sales tax.. but depending on your state laws, they may want to see the invoices, etc.

 

[Dugaru]

Also in some states, registration gets the tax man's attention.

This.

 

[ATC_RV8OR]

When you register, that usually kicks off your state’s tax department to start asking where their money is. May not be a big deal these days as Vans is collecting your state’s sales tax.. but depending on your state laws, they may want to see the invoices, etc.

In VA the aircraft tax is LESS than what Vans collects. Vans should not be collecting it.
Vans is collecting VA Sales tax which state and local is 5.3%. The aircraft is supposed to pay USE tax which is 2%.
This all gets done when the aircraft is airworthy. Spoke at length with VA aviation department. Also the 2% goes to a special fund. Long story short I’ll get “credit” for paying 5.3% towards the 2% but there’s no refund of the difference. Bonus the aviation department more likely than not won’t see a dime in their fund but they don’t penalize me for not paying.

On a 60k engine I’d be getting hosed out of nearly 2k if Vans ships it to VA. If I pick up in PA no sales tax. I can report it at the 2% aircraft rate when I register with the state. It’s a 3 hour trip so it’s worth 2k plus shipping to get it myself.

Thanks Vans

 

[Dugaru]

the aviation department more likely than not won’t see a dime in their fund

Which means Vans’ wooden-headedness would indeed be simultaneously hosing you AND the Commonwealth’s aviation programs!

I wonder if aircraft kits/parts are subject to Virginia sales tax, even if airworthy aircraft are subject to use tax? If there’s not a specific exemption perhaps Vans has to play it safe.

 

[ATC_RV8OR]

Which means Vans’ wooden-headedness would indeed be simultaneously hosing you AND the Commonwealth’s aviation programs!

I wonder if aircraft kits/parts are subject to Virginia sales tax, even if airworthy aircraft are subject to use tax? If there’s not a specific exemption perhaps Vans has to play it safe.

Apparently not wooden headed after all. Seems the Dept of Aviation doesn’t understand the Dept Tax.

Per VA Tax Dept anything tangible gets sales tax. Use tax is different than sales tax. Due to that fact they are apparently apples and oranges.

If you paid Use tax in another state VA will credit you towards the amount owed to VA. However VA will not credit VA sales tax towards VA use tax.

Unfortunately Vans should be collecting VA sales tax. Then you get to pay use tax when you’re airworthy to VA.

Gross 5.3% sales plus 2% use = 7.3% on huge amount of money.

 

[Dugaru]

Apparently not wooden headed after all. Seems the Dept of Aviation doesn’t understand the Dept Tax.

Per VA Tax Dept anything tangible gets sales tax. Use tax is different than sales tax. Due to that fact they are apparently apples and oranges.

If you paid Use tax in another state VA will credit you towards the amount owed to VA. However VA will not credit VA sales tax towards VA use tax.

Unfortunately Vans should be collecting VA sales tax. Then you get to pay use tax when you’re airworthy to VA.

Gross 5.3% sales plus 2% use = 7.3% on huge amount of money.

This makes my brain hurt! Very interesting and informative - thanks for following up.

I suppose any research that results in the conclusion “you have to pay more tax” is, sadly, likely to be correct.