Van's Air Force
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NV Use Tax-property tax Question
- Thread starter bret
- Start date
No Tax----its for education and entertainment 
Probably wont get away with that one.
Tom
Probably wont get away with that one.
Tom
For property tax, I just waited until I heard from Lyon county - they sent me a form, I filled it out, and they sent me back the tax, which was pretty reasonable (because they REALLY undervalue the airplane, and the depreciation is really fast).
bret
Well Known Member
So that was another question, do they tell you what it is valued at, or do you tell them what you...............um......have invested into the build?
Jesse
Well Known Member
I can't speak specifically to your state, but I know different states handle it differently. Some states (Virginia comes to mind) just have you pay the tax on the price of the kit. Other states (Florida and probably others) expect you to pay tax on every red cent you spent on the plane, including shipping. In Florida, they will send a letter stating that you have registered an airplane in the state and have not paid sales or use tax. They will ask you to state how much it cost. They then have the option of accepting your number or requestInt proof in the form of detailed receipts, etc.
My recommendation would be to call the department of revenue and say you have built and airplane in your garage and want to know if sales or use tax is due, and how to value the plane. They will tell you what they expect and you can deal with that person through the process. I am sure these things are handled somewhat differently at times even in the same state, depending on who you talk to and what they had for breakfast.
Someone else may have more specific info on your state, but I have found that a phone call to the DOR is the cleanest path.
Here is what the State of Michigan did on my RV-10: About 3 weeks after I received my AW, I got a letter from the Michigan Department Of Treasure. It stated that they found I had a recently acquired an airplane and needed information for tax purposes. I could fulfill the request one of two ways. Provide an official written appraisal from an accredited appraiser, or complete a short form declaring its value and provide documentation supporting my declaration which were copies of the receipts. The letter lead me to believe that they were knowledgeable in kit planes and values. I was to provide the documentation and send a check along with it and it was specifically stated that I MAY owe penalties afterwards. I think I lost a few receipts somewhere but they were satisfied with what they got. I was audited by the IRS many years ago and believe me, you do not want to be suspected of cheating the government of their fair share.
It was a few years ago now, but I either let them guess or I put down the price of the kit and the price of the engine - had no issues with it either way. They didn't ask for any receipts, perhaps because we moved it from Texas, and there was no requirement for us to have receipts. Lyon County was very friendly about it - not sure about Douglas.
I valued my RV-9A at the Kits cost plus engine, instruments, and prop. Experimentals are a 15 year assest, depreciated yearly until you owe nothing. Dan in Reno
az_gila
Well Known Member
Looks like you do it yourself...
http://www.douglascountynv.gov/731/Determine-Taxable-Value-of-Personal-Prop
With this form...
http://www.douglascountynv.gov/DocumentCenter/Home/View/304
Annual property tax.
bret
Well Known Member
Um.......sticker shock! OK, so just running the numbers, and they do have an extremely complex math formula for this, does 550.00ish a year sound too high? what are most folks paying each year, and does this tie into your house taxes in anyway? I really want to stay on top of this........so that I can give my money to someone who is going to give it to %$$##@$$@#......nevermind.
Plummit
Well Known Member
Like the rest of us who live in states with abusive tax practices, you are Chucked Farley, and you don't even get kissed!
I just don't understand why our national organizations (AOPA and EAA) don't take this issue on. To me it's one of the single most detrimental obstacles to General Aviation growth.
-Marc
I just don't understand why our national organizations (AOPA and EAA) don't take this issue on. To me it's one of the single most detrimental obstacles to General Aviation growth.
-Marc
Try some counties in Va. They have the highest personal property taxes in the US. For example, if you bought a $100k experimental RV in Accomack county, the yearly pp tax would be 70% of the price X $3.72/$100. Over $2600 every year. They do deprecate the purchase price over time but at a very slow rate.
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