FL sales tax?

In an old thread a few people describe different experiences with Florida sales tax after registering their plane. I am getting ready to send in my registration and would rather not have a huge surprise tax bill.

Any recent experiences with FL? Are they still accepting the "I built it over more than 6 months" argument? Or maybe I should register it as something other than an RV and assign my own value?

Chris

From my experience

What I did recently:

Registered my 9A with the FAA in nov. Got a form from the FL tax man Jan. I called him, number and contact provided. From my understanding form the conversation, I came up with a total investmented, basically the (kit, avionics, engine) and my estimated date when My 9 could be considered an airplane. Not fully assembled but all the parts where in place. I Included a short list of vendors (Vans, Stein, Areo sport power) and returned the form to Talahassee. Shortly I received a tax bill with a small penalty for not paying earlier. I'm Sending a check next week.

What I get from this, is you will be responsible for determining the value to be taxed and the date it became an airplane. My assumption is the tax man has an idea of what is reasonable. The date you considered your RV an airplane will determine any penalties. Now if you paid state sales tax on things like avionics or your engine that would be noted on the form provided.

Note to all if you pay sales tax on the kits as you acquire them from Vans the tax man shock can be spread out over, in my case 5, years

Also note, when you register your RV with the FAA the tax man will know it's an RV?

Yes I know the tax issue is a concern but look at it this way, YOU'LL by flying soon.

Good luck

Not sure I understand. I paid sales tax when I purchased each kit based on the actual cost of the kit. Is sales tax due on something other than the actual cost of the kits?

If you paid Sales Tax, then note that, and you won't owe for that portion. If you bought anything across State lines, and didn't pay Sales Tax, technically, you owe Use Tax, which in many states is the same rate as Sales Tax.

The trick would be to convert it into a completed airplane, in a state with no sales tax (like Nevada), and then transport it in (relocate it), then you would not owe anything.

If you've paid state tax on the kits, note it on the tax form you will receive. this will be credited to your final tax bill

If you think I can help more, send me a pm. I give you my phone number

I bought my kit from a guy in Florida. When I registered it I got a notice for sales tax due. I sent them my bill of sale for the kit and a check for 6%. They were happy.

Don

Sales/Use tax is due for technically every penny you spent on the airplane, I cluding shipping, Upholstry, paint, etc at the time of registration. You can't take it out of state to assemble it then bring it back with no tax due. If it comes into the state within 6 months of you owning it as a completed airplane, then use tax is due.

Thanks all.

It seems the question then is when they want the "use" tax. If it's when it is registered, that's fine, because I don't even have an engine, interior, or all avionics yet, so they couldn't tax me on what I haven't bought. I would just be paying the tax on a registered group of sub-kits. If they want the tax when it becomes a "completed airplane", am I supposed to just tell them I'll get back to them when it's complete?

Chris

YellowJacket RV9 said:

Thanks all.

It seems the question then is when they want the "use" tax. If it's when it is registered, that's fine, because I don't even have an engine, interior, or all avionics yet, so they couldn't tax me on what I haven't bought. I would just be paying the tax on a registered group of sub-kits. If they want the tax when it becomes a "completed airplane", am I supposed to just tell them I'll get back to them when it's complete?

Chris

Click to expand...

Technically the tax is due on purchase of anything. Technically you owe it on everything you purchase out of state for in-state use. Here in CA it's overdue if not paid by the following April 15 (same as income tax). Now the state only finds out about it when you register the airplane, that's when they'll ask if you did in fact pay it. They may or may not impose a penalty for late payment.

YellowJacket RV9 said:

Thanks all.

It seems the question then is when they want the "use" tax. If it's when it is registered, that's fine, because I don't even have an engine, interior, or all avionics yet, so they couldn't tax me on what I haven't bought. I would just be paying the tax on a registered group of sub-kits. If they want the tax when it becomes a "completed airplane", am I supposed to just tell them I'll get back to them when it's complete?

Chris

Click to expand...

If I remember correctly, Florida requires it to be paid at least quarterly on purchases made during the quarter or there's a penalty.

My experience about 6 months ago was similar to Ka6dan. Received a sales tax letter from Tallahassee a couple of months after registering my -12 with the FAA. After some discussion I submitted the Van's kit invoices as well as avionics and the engine/prop which were purchased in Florida. As the FL sales tax was paid on the avionics and engine/prop at the time purchase, no problem there. The Van's kits on the other hand did not have any sales tax paid and the purchases went back over 5 years. The penalty and interest nearly doubled the amount due.

I assumed the sales tax was due when it became a flyable aircraft, not true. Florida does not care if it is a flyable aircraft or a toaster, you owe the sales tax when you buy anything and have it shipped to FL. They check the FAA registration data for new Florida registrations and send you a letter to pay the sales tax or show it has been paid. The Dept of Revenue guy in Tallahassee was very reasonable to deal with in reaching a settlement.

John Salak
RV-12 N896HS

12vaitor said:

My experience about 6 months ago was similar to Ka6dan. Received a sales tax letter from Tallahassee a couple of months after registering my -12 with the FAA. After some discussion I submitted the Van's kit invoices as well as avionics and the engine/prop which were purchased in Florida. As the FL sales tax was paid on the avionics and engine/prop at the time purchase, no problem there. The Van's kits on the other hand did not have any sales tax paid and the purchases went back over 5 years. The penalty and interest nearly doubled the amount due.

I assumed the sales tax was due when it became a flyable aircraft, not true. Florida does not care if it is a flyable aircraft or a toaster, you owe the sales tax when you buy anything and have it shipped to FL. They check the FAA registration data for new Florida registrations and send you a letter to pay the sales tax or show it has been paid. The Dept of Revenue guy in Tallahassee was very reasonable to deal with in reaching a settlement.

John Salak
RV-12 N896HS

Click to expand...

Good to know. I believe CA tax law is similar to Florida's, and I figure it'd be good to pay now to avoid interest and penalties. I'm pretty sure that shipping and crating charges are not taxable, but I'll call the BOE of CA next week to find out.

It hurts to write a $5600 check, but it could certainly hurt more...