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  #21  
Old 09-24-2018, 12:03 PM
BobTurner BobTurner is offline
 
Join Date: Dec 2011
Location: Livermore, CA
Posts: 5,716
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My letter to the county (2010) simply said, “per the FAA, I do not own an aircraft, as I have no A/W certificate. I only own parts. I will notify you when I receive an A/W certificate.” Alameda county seemed happy enough with that back in 2010.
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  #22  
Old 12-29-2018, 09:21 PM
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DrillBit DrillBit is offline
 
Join Date: Nov 2007
Location: Pleasanton, CA
Posts: 153
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Originally Posted by DrillBit View Post
Well...a second call to the assessor, with all relevant citations ready to quote, was not successful. If an appeal was filed, the assessor told me, THEN he would look up my citations and relevant case law, etc. Gummint 1, Informal appeal 0.

I was incensed about filing an appeal as it carries a no-refund filing fee! Pay the gummint not to tax an asset that by law is NOT an asset in the first place? Absurd!

But, there is another avenue: Application for refund of property taxes paid where the dispute is not assessed value, but that the assessment itself is invalid. No filing fee.

Alameda County has 1 AMU of my hard-earned dollars in the bank, but if the Hearing Officer agrees with the plain meaning of the law--an aircraft cannot be assessed until it has flown--I'll get a refund with interest.
Yes, Virginia, there is a Sanity Clause after all. Just received a letter from the Alameda County Assessor: “Pursuant to your request…cancellation of the 2018-19 assessment has been initiated.”

One down, three to go. In the intervening weeks, the lower echelons in the assessor’s office decided that, since I had leased a hangar at KLVK since 2015, and the airport’s annual based-aircraft reports showed an associated (reserved!) N-number, then N748PK had “escaped” assessment in the prior 3 tax years.

One would assume the Assessor will cancel the bills for those tax years too. Or I may be formally explaining the nature of Time’s Arrow in another series of petitions….

Lessons:

1/ Never refer to an airplane project by a reserved let alone an issued N-number in any airport paperwork. (Or maybe put down November-Zero-November-Echo, N0NE, a conveniently non-conforming registration number.)

2/ When Aircraft Property statements arrive the year after registration, the do not fill them out. Send a letter saying you can’t complete the form without committing perjury because to the best of your knowledge, a collection of parts must have flown (in very close formation) at least once before it is considered an aircraft.

Due to a heavy end-of-year work schedule and holiday obligations, I wasn’t able to track down and fix an aggravating static leak until today. Just a few items to do before final inspection. N748PK will fly in 2019, after the first of January. Huzzah!
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Kurt Haller
P-town, CA (10 min from KLVK!)
N748PK, RV-9A
Airworthy as of 21 January 2019

VAF dues last paid 9 Dec 2018
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  #23  
Old 12-30-2018, 12:27 AM
BobTurner BobTurner is offline
 
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Location: Livermore, CA
Posts: 5,716
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If your A/W inspection is after Jan 1, you won’t owe taxes for 2019. But expect to fight this battle again around June.
While they should not be assessing property tax on the airplane parts for previous years, you may (if not already) get the property tax bill for the hangar, even though you don’t own it. In CA the county can’t tax cities (LVK is a municipal airport) but they can pass the bill on to you. It will say “possessitory interest” on the bill.
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  #24  
Old 12-31-2018, 02:38 AM
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DrillBit DrillBit is offline
 
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Location: Pleasanton, CA
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Yep...been paying “possessory interest” on the hangar from the get go.
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Kurt Haller
P-town, CA (10 min from KLVK!)
N748PK, RV-9A
Airworthy as of 21 January 2019

VAF dues last paid 9 Dec 2018
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  #25  
Old 12-31-2018, 06:08 AM
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N941WR N941WR is offline
 
Join Date: Jan 2005
Location: SC
Posts: 12,137
Default same issu, different state.

Good luck with your California taxes!

In North Carolina I had a similar issue but there personal property tax is bases on the county where the plane is bases, which were different in my case. I got (high) bills for the county I lived in while building and later a bill from the county where I based the RV.

I negotiated with the county and convinced them I had only $16k in the kit, which they accepted.
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RV-9 (Yes, it's a dragon tail)
O-360 w/ dual P-mags
Build the plane you want, not the plane others want you to build!
SC86 - Easley, SC
www.repucci.com/bill/baf.html
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  #26  
Old 12-31-2018, 10:02 AM
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bmarvel bmarvel is offline
 
Join Date: Aug 2005
Location: Grand Junction, CO
Posts: 53
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It's been many years but we also ran into the tax issue when we lived in CA and built our former RV-8A at Torrance (TOA). At the time I carefully read the paperwork regarding the personal property tax and was able to "interpret" it as requiring payment on the value of the kit. So I did just that, paying on kit value only but not including the engine, avionics, propeller, paint, interior, etc. First flight was in 2002 and we moved out of state in 2006 but my annual personal property tax payments were never questioned.

FYI when I make up the cost/benefit matrix for where to live after we left the Golden State, I noted that Colorado has no personal property tax on airplanes nor any sales tax on aircraft parts. The -8A was sold but our -14A happily lives here now with us.
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Grand Junction, CO
RV-8A N751MB -1700 hours, sold
RV-14A N465MM - 432 hours and climbing
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  #27  
Old 12-31-2018, 02:19 PM
yarddart yarddart is offline
 
Join Date: Jun 2006
Posts: 100
Default Taxes

Illinois when you start thinking about buying a kit they willsend you a tax bill seriously I think guys are setting up LLC is in states which have no taxes
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  #28  
Old 01-13-2019, 09:21 PM
rongawer rongawer is offline
 
Join Date: Dec 2007
Location: Brentwood, CA
Posts: 428
Default Valuation

How how have your valuation's been established?

My old Baron had a bunch of old birds to be compared to and I was able to negotiate on the valuation. But for the RV-10 that I'm building, I'm wondering how that will go, especially with a much smaller pool of airplanes in the market and various modifications from plan that may alter the value.

I'll probably just end up bargaining with them, but curious how everyone else has gotten this done.
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Ron Gawer

- RV10, Build in progress.
- RV12, N975G, "The Commuter"
- Several others that are now just great memories for me.
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  #29  
Old 01-19-2019, 03:47 PM
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RV7A Flyer RV7A Flyer is online now
 
Join Date: Jul 2013
Location: US
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Quote:
Originally Posted by yarddart View Post
Illinois when you start thinking about buying a kit they willsend you a tax bill seriously I think guys are setting up LLC is in states which have no taxes
If you're talking about setting up an LLC in *another* state than which you live/build/fly, I think that's been tried but doesn't work. Search the forums here, should be lots of info.
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  #30  
Old 01-20-2019, 09:06 AM
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ColoCardinal ColoCardinal is offline
 
Join Date: May 2010
Location: Morrison, CO
Posts: 361
Default Sales tax

Quote:
Originally Posted by gasman View Post
Personal property tax is one thing........

But the sales tax will cause some pain.........

Don't ignore it, it grows over time with interest......
I purchased that vast majority of my kit in 2010 from a private party. I assume that sales tax was payable by that first party since (in Colorado) sales tax is not assessed on a "private sale". The airworthiness Cert was issued last month. What sayeth the noble collective?
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N16CB RV7A
Airworthiness cert issued 12/24
best X-mas present I could have hoped for!
paid 'til 10-19
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