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Sales Tax on Van's purchases in Georgia

KatanaPilot

Well Known Member
I just received a small order from Van's. For the first time ever, I was charged sales tax. I suspect I know the reason, but does anybody know for sure?

If this is the future, it will add thousands of dollars to the cost of an airplane kit for Georgia purchasers.
 
Van's posted a notice a few weeks back that they are now required to collect sales tax on all items shipped to GA now.
 
Krea,

They used to hit you with <effectively> the same bill when you registered the airplane. Apparently, they will collect it as a sales tax going forward.

The primary difference is the timing of when you pay the tax.
 
I suspect the now have "nexus" (significant physical presence) in Georgia as they list an east cost rep in Georgia on their web page, In my experience, one you have nexus in a state you are obliged to collect sales tax.

Same goes with Aircraft Spruce, if you live in Georgia they will add sales tax, due to their presence in Georgia.
 
Krea,

They used to hit you with <effectively> the same bill when you registered the airplane. Apparently, they will collect it as a sales tax going forward.

The primary difference is the timing of when you pay the tax.

Guess I didn't get the memo from Van's.

Kyle, are you saying that there will be a one for one reduction in tax liability upon registration provided you can properly account for Georgia sales tax paid? If so, do you have a Dept. of Revenue reference I can go review so I can make sure I meet their requirements? Thanks much.
 
Make sure you keep detailed records of purchases including what you paid taxes on. The State will require that you have proof of taxes paid otherwise they will hit you again when it comes time to register the plane. "Claim what you have to and deduct whatever you can". (Legally)
 
Guess I didn't get the memo from Van's.

Kyle, are you saying that there will be a one for one reduction in tax liability upon registration provided you can properly account for Georgia sales tax paid? If so, do you have a Dept. of Revenue reference I can go review so I can make sure I meet their requirements? Thanks much.

Yes. Keep your receipts, particularly the ones showing you paid Georgia sales tax.
 
Thanks for the link and the information. Guess I need to visit the news and releases page more often.

As long as we are only taxed once, there probably is some benefit to spreading the payments out over the course of the build.
 
Van's has a physical presence in Georgia now in the form of Vic Syracuse. (East Coast Representative for Van's Aircraft).
I suspect that is the reason.
 
Sales tax-Nexus

I've been in the mail order business (like Vans) for 29 years. Until recently mail order shipments were not taxed. Revenue starved states have noted the closure of local businesses and the growth in out of state mail order firms (think Amazon,etc) and have felt the decrease in state income. More and more states are adopting a mail order sales tax strategy and rumors are that Congress may help make it nationwide.

Our company has been very active trying to prevent taxation from other states. One reason is that many states break down the taxation within counties and tax districts making the calculation for nationwide sales like we do horrendous. It varies greatly and requires updating changes to thousands of tax districts.

My opinion: get ready. It will happen to all our RV vendors.
 
Watch for the decision from SCOTUS in South Dakota v. Wayfair, 17-494, which is about precisely this issue.
 
I had a conversation with the State of Georgia tax collector today. Turns out the regional property tax collection office is in Cartersville, GA, where my RV-6 is based and also where I work. My RV-10 isn't registered and won't be for a couple of months, at best. I was just trying to do some cashflow planning for when taxes are due.

Here's what he said:

The State of Georgia generally receives notification of an airplane registration from the FAA about a month after you register the airplane. Following that, the state sends you a tax notice and you have 30 days to respond.

Anything you buy new from a commercial source will be taxed. If you have already paid State of Georgia sales tax on it, keep the receipt for your records. You won't have to pay twice. This includes taxed items you bought from Vans, Aircraft Spruce, Home Depot, or the local hardware store.

Items you bought from out of state, but didn't pay Georgia sales tax on will be taxed at your home county's tax rate. The engine I purchased from BPE would fall into this category.

Items you bought from an individual (i.e. "casual sales") will not be subject to sales tax. That would be things like a second hand tail kit or a used engine you bought from an individual. It helps to have receipts for these items.
 
I had a conversation with the State of Georgia tax collector today. Turns out the regional property tax collection office is in Cartersville, GA, where my RV-6 is based and also where I work. My RV-10 isn't registered and won't be for a couple of months, at best. I was just trying to do some cashflow planning for when taxes are due.

Here's what he said:

The State of Georgia generally receives notification of an airplane registration from the FAA about a month after you register the airplane. Following that, the state sends you a tax notice and you have 30 days to respond.

Anything you buy new from a commercial source will be taxed. If you have already paid State of Georgia sales tax on it, keep the receipt for your records. You won't have to pay twice. This includes taxed items you bought from Vans, Aircraft Spruce, Home Depot, or the local hardware store.

Items you bought from out of state, but didn't pay Georgia sales tax on will be taxed at your home county's tax rate. The engine I purchased from BPE would fall into this category.

Items you bought from an individual (i.e. "casual sales") will not be subject to sales tax. That would be things like a second hand tail kit or a used engine you bought from an individual. It helps to have receipts for these items.


How about if you bought the whole airplane from a builder in another state??
 
I'll be happy to let any of the Georgia brethren use my house to ship their large parts to and save on the sales tax.

Im just across the state line in Chattanooga, and donations of bourbon are accepted. :)
 
I'll be happy to let any of the Georgia brethren use my house to ship their large parts to and save on the sales tax.

I'm just across the state line in Chattanooga, and donations of bourbon are accepted. :)

You'd have to buy the parts from Vans and do a "casual sale" to the Georgia builder to legitimately avoid the tax.
 
How about if you bought the whole airplane from a builder in another state??

I'd guess you'll be taxed at the fair market value when the registration shows up under your name, but I don't *know* that.

Here's the guy's name and office number if you'd like to call:

John D. 77oh 387-4073
 
GA tax

Vans aircraft reps should be required to live in an RV with no permanent address and list company as mailing address.
Bob
 
Sales tax

Many discussions in the past on this subject. Most states have use tax bills on books where you are "supposed too" pay sales taxes on Internet out of state purchases on goods. Generally listed on your state income tax forms.

Now Florida does not have a state income tax. 😄 However they do have a tax office and a use tax provision where you have to pay sales tax on out of state purchases if the company does not collect the taxes. I did an RV 12 kit and knew when I registered it that the state would come calling. So I was proactive and declared my kit components 5 packages and sent them a check for $4330.00.

I still got an inquiry from office looking to see if I paid my sales tax. So sent them a copy of form, my check to show I did. Don't think they made connection between the parts = an airplane. We will see. I have another plane where I aid OHIO my use tax. So if you might have purchased a plane from another and they never paid tax then you might be subject to it, probably depend on state.

Allan Stern
Dues paid 2018
Rv12 flying
RV 8A flying
RV 6A sold
 
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