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Sales tax ???s

J

Jimbo54

Member
According to AOPA, Utah has a Fly Away Rule that is "Limited to out of state buyer and seller." Does that mean both that the seller (and not just the buyer) must be non-resident to have the buyer avoid sales tax? (the plane in question is titled/registered in Utah).

Secondly, I live in Oregon - where there is no sales tax. Is my understanding correct that if I take delivery of a plane (i.e. the seller flies it to OR), I am not responsible for sales tax in the state from which the plane came (was registered in)?

Finally, if the owner won't bring it, but a ferry pilot will, and I take delivery in Oregon - does it matter where the money exchanges hands?

Oh, one more... If a train leaves S. Dakota at 4:00 PM, and heads east traveling at 63 mph, and a second train leaves Chicago at 3:00 AM, and heads west at 52 mph, and a third train...:confused:

Thanks. Jim
 
Jimbo54 said:
According to AOPA, Utah has a Fly Away Rule that is "Limited to out of state buyer and seller." Does that mean both that the seller (and not just the buyer) must be non-resident to have the buyer avoid sales tax? (the plane in question is titled/registered in Utah).

Secondly, I live in Oregon - where there is no sales tax. Is my understanding correct that if I take delivery of a plane (i.e. the seller flies it to OR), I am not responsible for sales tax in the state from which the plane came (was registered in)?

Finally, if the owner won't bring it, but a ferry pilot will, and I take delivery in Oregon - does it matter where the money exchanges hands?

Oh, one more... If a train leaves S. Dakota at 4:00 PM, and heads east traveling at 63 mph, and a second train leaves Chicago at 3:00 AM, and heads west at 52 mph, and a third train...:confused:

Thanks. Jim
Click to expand...
I can?t specifically speak for Utah, but a fly away rule would mean that just the buyer must be from out of state.

If you take delivery in Oregon, you would not pay sales tax. The tax is based on taking possession. If you go to Utah, pay the money, then have a ferry pilot take it to Oregon, there should be no tax. However, it would make more sense and be cleaner to go look at the plane, give a deposit, then wire the balance when you get back to Oregon. Then you pay someone to deliver it to you and there is no sales tax (think FedEx or ups delivery of something purchased from out of state).
 
Jimbo54 said:
Oh, one more... If a train leaves S. Dakota at 4:00 PM, and heads east traveling at 63 mph, and a second train leaves Chicago at 3:00 AM, and heads west at 52 mph, and a third train...:confused:
Thanks. Jim
Click to expand...

It all depends on whether or not the third train is primed.
 
This is what Utah officially says -

https://tax.utah.gov/selfreviews/aircraft/faq.pdf

Looks like no use tax since the plane will not be subject to Utah registration/titling since you are a OR resident. Location of pick-up does not seem to come into play.

Perhaps registering the plane in Oregon on the first day you own it would help show it has left Utah?

http://www.oregon.gov/aviation/pages/aircraftreg.aspx

But, I'm not a lawyer and slept at home last night, not a Holiday Inn so make your own determination....:)
 
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