Jesse is correct and depending on what state you live in you made be required to download and send in the occasional sale form that basically says your not a dealer.
The bill of sale has nothing to do with Sales or Use Tax. It is simply a formality saying that you bought a kit from Van?s and that you built the plane from a kit. Other than that you don?t even need a value on the kit bill of sale. What you paid for the kit or the plane is none of the FAA?s business. Your state Department of Revenue, on the other hand...it is their business, but they don?t get it off the kit bill of sale.
In PA there is no sales tax on aircraft parts. 6%, or more, on aircraft.
The guy two Hanger's down for me says he chose parts and did not send in a bill of sale with the registration form . And, at his air worthiness inspection including a DAR and an FAA from the MIDO asked why he chose parts on the registration form. He said he didn't answer just smiled. Then they answered for him. "You probably did it to avoid taxes". Long pause. Then they smiled and said. "Don't worry, you got it registered. Registration or paying taxes is not our department.
When you say he chose parts instead of bill of sale what do you mean by that.
What form was used to select parts in lieu of a bill of sale. I don?t see that choice on the 8050-1 form
I?m getting ready to register and am interested in how that was done
Am I missing something?
Thanks
I think you need to send in the 8050-88 regardless of what check box you select.
If you select - ?More then 50 percent was misc parts?, then don?t send a bill of sale.
If you select - ?more then 50 percent was a kit?, then attach the bill of sale.
It says this right on the form.
I?m I wrong?
If it is not an approved kit then there are a lot of calculations needed on an FAA form to show you meet the 51% rule.
Would registering the airplane as an assembly of parts vs. a kit also prevent use of the additional pilot during Phase I testing per AC 90-116?