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Anyone buy their parts while AT the Van's facility?

txaviator

Well Known Member
I am planning a trip up to Van's during early February. I was planning to go ahead and place my orders while I was at the factory.

However, yesterday at lunch, Jay Pratt brought up a good question: if I buy my parts while physically at Van's, do I have to pay sales tax? I would assume the answer is yes? Does anyone have any first-hand experience by buying your kit(s) at the Van's facility?

If I must pay sales tax, the way I figure it, I can save hundreds in sales tax by NOT ordering at Van's, and opting for ordering through the Internet (I am not an Oregon resident, thus no tax). :D

Thanks !
 
I am guessing that LEGALLY, they would HAVE to charge you state tax.

The point of sale would be in Oregon.

However, who would be the wiser if you gave them a check and took the stuff with you. For all intents and purposes, the deal COULD have taken place on the internet.

Maybe sending them a check ahead of time would make everyone feel better and just pick up the stuff when you get there?

Dunno???

:confused: CJ
 
Got good news for you. You would have to pay sales tax IF Oregon had a state sales tax. They do NOT, only an income tax. Just picked up my emp. kit there last week--no tax, no crating, no shipping. Great Deal!

Steve
 
Last I heard Oregon had no sales tax. Call Van's and ask ? It only takes a phone call.

Bob Olds RV-4 , kit bought at Van's Aug. , 1986
Charleston,Arkansas
 
Steve Moore

Thanks for the good info. Buy direct from Vans!!!! Glad to know that.
Thanks
Cabelos,,,, Camping stuff... is opening a store here in Texas. I will have to find another place to buy from so I can save sales tax.


Plan an Idaho camping trip

Cheers
 
tax

Oregon does not charge sales tax. Vans does not care where the intended point of use is nor where you reside. I bought my -9A empannage (and a t-shirt, RVator, coffee cup, etc.) last June at the factory.

Steve
90979 wings
 
Steve...

I'll probably spend a small fortune on the shirts, hats, and other things too! :D

Since I am flying into Portland (commercial), I'll still need to ship my empennage back home...but being at the factory and ordering 'on the spot' will just be kind of cool :cool: In other words, "hey guys, thanks for the test flight...here's $1700 for my tail kit!"

Have a good one,
 
I live about a 30 minute flight in our RV-6 from Van's. Anytime I need something I just jump in and go get it. That little sack of rivets a couple of weeks ago was pretty spendy, but I loved the flight up there and back. Everyone there is nice and helpful, and I've met other RVers from all over the country.

No sales tax in Oregon. Income tax amounts to a flat 9%.
 
Last edited:
txaviator said:
I'll probably spend a small fortune on the shirts, hats, and other things too! :D

Since I am flying into Portland (commercial), I'll still need to ship my empennage back home...but being at the factory and ordering 'on the spot' will just be kind of cool :cool: In other words, "hey guys, thanks for the test flight...here's $1700 for my tail kit!"

Have a good one,

Pick me up a hat!

:cool: CJ
 
Maybe I'm missing something but aren't you going to have to pay sales tax anyway when you register the plane with the FAA? Here is Arkansas when you buy a plane no matter where you bought it the FAA send a notice to the state sales tax authority when you register it in your name. The only strange thing is that the seller is responsible for collecting and remitting the tax if bought inside the state. In the case of a kit plane the builder is responsible for paying the tax. I'm sending them a check each time I make a major purchase just so I won't have to cough it up all at once. To make a long story short if your sate has a sales tax on aircraft you will have to pay it eventually. :(

Jim Wright 90919 wings Arkansas
 
Jim...

Now that's a great question about the sales tax needing to be paid eventually. I just thought of a recent, and great example that may help to answer the question: Bob Dean is the gentleman from San Antonio, Texas who had his first flight out at Jay Pratt's RV Central this past Saturday (RV-8). Perhaps we can ask Jay to get the low-down on the whole tax question from Bob Dean. Why Bob Dean? He is a CPA, so if anyone could give us a current ruling, maybe Bob could? Good topic!
 
Sales Tax issues

While Oregon may not have a sales tax, those of us who live in states that do collect a sales and use tax will still have to pay to our home state. When we register the plane with the FAA, the state tax collector will come calling. At that time you must be able to show the paid tax or be prepared to pay then. Sam Buchanan of The Tennessee Valley RV Builders Group says it very well.

See the TVRVBG site http://home.hiwaay.net/~sbuc/tvrvbg/salestax.htm
 
Thanks, Zack,

That's some interesting reading, and something that I would venture to bet that most people do not take into consideration during the course of their build.

Take care,
 
Tax

Texas does not have a personal property tax, and air planes do not pay sales tax, used.
The Rv camper/ trailers and boat owners got that out a while back.
 
So does that mean that a homebuilt falls into the 'used' category? <cynical> Does that mean that I should save my receipts for all the airplane related stuff bought in Texas and get refunded? </cynical>

And what about the ever popular 'use tax', which is supposed to be a psuedo-sales tax for internet/catalog purchases?

Well, at least we get to itemize a sales tax deduction for the federal income tax now...
 
Tax

For the lawyers out there is there any advantage to forming an LLC in another state and registering the RV there? ie. Form the LLC in Texas (Jay makes Texas look pretty attractive) and avoid sales tax in another state? I am really glad I live here and that I bought a partially completed (used) kit!
 
So if the tax letter is triggered by the N-number application, does that mean that after you apply for the N-number, that you fall off their radar scope? i.e. If you have the N-number reserved before you have the avionics, engine, FWF, etc, will the state come looking for you after your first flight? How about if you have to replace parts and order that from Van's after you've been flying for a while?
 
Registering the Airplane

My understanding is when you reserve an N number the FAA merely avoids assigning it to another aircraft. You are not allowed to put the N number on an aircraft before you register the aircraft. Registration is completed at the time of the DAR's inspection.

Discuss this with someone who has been through the process. I am still trying to understand it all.
 
N-Number Reservation

When you reserve an N-number the FAA simply reserves that number in your name. There is no aircaft information associated with it. I believe that when you register the aircraft, you tell the FAA to assign it your reserved number. It is my understanding (and I may be wrong here) that you can register the plane before you complete it, but most people don;t. It is actually cheaper to register the plane at a one time $5.00 fee rather than pay $10.00 per year to hold a reserved N-number.

I expect that many states get info from the FAA on aircraft that are registered with addresses in that state in order to try and collect the sales tax. I don't know if the info from the FAA includes reserved N-numbers, but it may, and you may get a letter from your state tax dept. requesting the tax and you will have to try to explain that the plane does not exist yet. On the upside, they will not have a make and model from which they can try to derive a valuation from so they wil have a hard time justifying the demand. It will however raise a flag that they should keep an eye out for when the plane is actually registered.

I am curious as to whether NY will see my N-number reservation and inquire about my "aircraft". We'll see :)
 
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