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California aircraft owners

redbowen

Member
Looking for some information from the California aircraft owners in the group. I will be moving to Redding, Ca soon and want to make sure I understand the costs for my airplanes in California. As far as I can tell, since I purchased them outside of California way more than 90 days ago, the use tax does not apply. I do see reference to property tax however. For boats and cars this is included in the registration fee annually. What I can not find is if there is an annual property tax on aircraft if keep in California, and if there is, at what rate, and in what manner is it billed.
 
Welcome to California

There is a personal property tax on aircraft based in California. I think its about 1% of the assessed value per year. The assessed value is somewhat negotiable. The county tax assessor is somehow in touch with FAA aircraft registration, hanger rentals, etc., they will no doubt find you and will mail you a bill each year.
 
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So if I move my aircraft to California how is that initiated? If I just don't do anything how do they know, from FAA address change?
 
The property tax will be based on the county and based on the assessed value. If you built it, then you get to set the value (within reason). If purchased, then that is what they will go by.

for Yolo county it is 1%

If you bring a car in within 1 year of purchasing it, you are expected to pay use tax on it. I am not sure if the same applies to other things.
 
So if I move my aircraft to California how is that initiated? If I just don't do anything how do they know, from FAA address change?

I think they send airport managers requests if there are any new airplanes or renters there.

I got a letter when I first moved here while the plane as still a couple years from being completed.
 
Property taxes are assessed by the County you are in. I have had my plane in LA county and San Bernardino County and the tax has been $400 to $500 in both, roughly 1%. In my experience, they send you a form early in the year asking about the airplane. I usually send that back with any ads I can find of comparable airplanes at rock bottom prices.

There is a webpage on the Shasta County Assessors website with more info.

Welcome to California. A lot of the people are goofballs, but the beauty of the state is incomparable. You'll love flying here.

John Allen
2001 RV-6A
 
We rent a hangar at Big Bear (San Bernadino Co.), and use it to keep our SOCAL car under cover when we're not there, and whatever airplane we bring down when we are. The airport knows our N-numbers, and we get a fishing message from San Bernadino every year - even though our airplanes are all based in Nevada, and we pay our Nevada taxes on them.

Last year, we finished our Dream Tundra with a partner, who also lives in Nevada. The airplane has never been to California, yet HE got a fishing message from San Bernadino as well (we didn't). Big Bear Airport has not yet seen the airplane, so we know they didn't give the information to California - but somehow, they have cross-referenced ownership records well enough to tag it to us. Not a problem for us - we pay taxes on it in Nevada, end of discussion. But they have long arms.....

Paul
 
Looking for some information from the California aircraft owners in the group. I will be moving to Redding, Ca soon and want to make sure I understand the costs for my airplanes in California. As far as I can tell, since I purchased them outside of California way more than 90 days ago, the use tax does not apply. I do see reference to property tax however. For boats and cars this is included in the registration fee annually. What I can not find is if there is an annual property tax on aircraft if keep in California, and if there is, at what rate, and in what manner is it billed.

Aircraft and California Tax -
Board of Equalization Pub 79a
 
They will learn you are there when you update the registration, I believe the 1% is correct and also the value of the aircraft is up for discussion.
Welcome to Redding! I keep my plane down at RBL, much friendlier environment that the city of Redding's 2 airports, especially RDD. There are several RV's at Benton.
Tim Andres
 
Rest assured, they will find you!
You will need to pay sales tax (up to 9% or so!) also called use tax to get around the constitution if you bought your airplane or parts recently. Best to check with the state what 'recently' means. My memory is 'within the last 6 months' but I could be wrong.
You will need to pay about a 1% of market value property tax every year. Taxes are assessed as of Jan 1 and due at the end of August. So you will not have to pay until August 2018 assuming you are moving soon. Note, if you were moving in December it might be worthwhile to leave your airplane behind, bring it into the state on or after Jan 2, to avoid one year's tax.
BTW, if you own a hangar you will pay 1% per year property tax on that too. And if you lease a hangar from a government agency like city or county, you will get to pay the hangar property tax then, too. They'll bill you directly.
Finally, if you leave CA on or after Jan 1 of some year, you'll still get a bill the following July, due August.
 
And don't forget about when the city does the annual hanger inspection the county tax assessor accompanies the inspector so nothing slips through the cracks! At least that's what was done when I flew out of there in the 80's and 90's. 😀 It is however, as I remember, a great airport.
 
Looking for some information from the California aircraft owners in the group. As far as I can tell, since I purchased them outside of California way more than 90 days ago, the use tax does not apply.

If you purchased it in the last year Use tax will apply. You have to keep it out of the state for 1 year to avoid use tax, or play the game where you fly it to different states for the first few months to look at investments.

Property tax will eventually get you too, around 1% on the assessed value plus "voted indebtedness", which is a back-door way to add bonds etc to the property tax values.

~Marc
 
The plane has to be bought outside of CA and remain outside of CA for at least 180 days or you'll have to pay sales tax in the county the plane is at. Then there's the property tax every year. You'll get a notice to fill out, it's about 1% like a home.
 
When my airplane was based in San Bernardino County, they based the value of the average for my model aircraft being sold through Trade-A-Plane. From what I remember, they thought you owed the tax if it was in their county on 1 January for the entire year. A questionnaire was sent registered owner asking questions on equipment, engine time in service, paint condition, and other items that they thought may increase the value. IF you think they valued it too high, you can appeal and they may lower the value and tax.

Expect to pay at least 1% to 2% of the value. There are bonds that can raise the normal 1% tax rate close to 2% but then that was 4-years ago and it may be higher now.
 
If the aircraft was purchased more than 8 years ago, does that exempt you from paying sales tax on the kit ? Per the statute of limitations?
Thank you Bob
 
If the aircraft was purchased more than 8 years ago, does that exempt you from paying sales tax on the kit ? Per the statute of limitations?
Thank you Bob

In this case the sales tax would be called 'use tax' (if an out of state purchase).
If you mean you bought it more than a year before moving to CA, then no tax is due. If you mean you lived in CA at that time, then, yes, I believe the statute of limitations is 7 years. Unless they charge you with deliberate fraud; I don't know the statute of limitations on that. Nor do I know the statue of limitations, if any, on property taxes, plus late fees. I think two different state groups collect sales/use taxes, and property taxes. They don't seem to talk to each other.
 
I think two different state groups collect sales/use taxes, and property taxes. They don't seem to talk to each other.

Use taxes are collected by the Franchise Tax Board (state). Property taxes are collected by the county assessors' offices.
 
I recently went through the use tax thing this for in and out of state purchases with the board of equalization. When they sent me a form/questionnaire, I returned it with a bunch of receipts, tax forms, and a check for what I owed (avionics only). I neglected to include the note I wrote to explain it all.

They sent me a bill more than doubling what I owed. After a phone call and talking to the person that had my paperwork, we were able to discuss what was purchased and when and where. I had purchased the kits over a 14 year period and mostly out of state. The finishing kit I did buy in CA, but paid the use tax already on my state tax returns.

The next day I got a form saying I now owed $0. They were very nice to talk to, resolved to issue quickly and I didn't feel they were trying to extract every available dollar.
 
Calif

Last place I would move too and I live here. Wait till you license your vehicles.
 
Last place I would move too and I live here. Wait till you license your vehicles.

Hmph. $100 or so per year for registration fees, and licensing fee (property tax) of .65% of value. That's better than the rate charged by my county for the airplane property tax (1% rate).

At least we don't have annual "registration fees" for aircraft here. Yet. :)

I *love* California. It's not perfect, but it has a ton of things to offer...
 
I already paid my sales tax for my aircraft purchased last year and that was easy and straight-forward.

Then last month I got a property tax bill statement showing a value of my aircraft that was almost $3000 more than what I paid. I called to ask why, and was told that the assessed value reflects the value of the aircraft plus tax. Huh?? That makes no sense at all! They can't add the sales tax to the value for a new, higher assessed value. Can they?? Please tell me if I'm wrong! I told the lady that what she's saying does not make sense and I wanted to talk to a supervisor or someone else. I was transferred to someone's voicemail and left a message.
 
It is True but sad

yep found that out years ago on one of planes. They add sales tax to the value to determine the actual value. I agree with YOU , but it is Cal. It has already been contest in court. Guess who won. Might know Cal. is overhauling the Board of Equalization at this moment. Don't expect it to change. We have many things that have sales taxed added and it is a RENTAL.
 
yep found that out years ago on one of planes. They add sales tax to the value to determine the actual value. I agree with YOU , but it is Cal. It has already been contest in court. Guess who won. Might know Cal. is overhauling the Board of Equalization at this moment. Don't expect it to change. We have many things that have sales taxed added and it is a RENTAL.

You're right Jim. The supervisor called me back and told me that it is correct - assessed value equals value (amount you paid) + tax. And as you've said, it was contested in court and the state won. So I just paid... :(
 
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