Any CA builders ever been in this situation: registered their kitplane w/FAA in year N, but didn't get final inspection, a/w cert, and make first flight until year N+1?
Did you receive a personal property tax bill from the county for tax year N+1, and if so, did you bother trying an appeal on the basis that it wasn't (yet) assessable as an aircraft?
The CA Tax and Revenue code defines an aircraft* as "...any contrivance used or designed for the navigation of or for flight in the air _which has been flown at least once_..." (Emphasis added.)
The lien date for assessing aircraft property tax is Jan 1st each year, but despite having an FAA N-number, a kitplane that has not flown is not yet assessable as an aircraft. Assuming the kitplane flies in year N+1, it is assessable in year N+2 and thereafter until its FAA registration is cancelled.
Always a dilemma, deciding if it's worth standing up to the tax man saying, "Notice me!"
___
*Part 10, Chapter 1, sect. 5303 (a).
Did you receive a personal property tax bill from the county for tax year N+1, and if so, did you bother trying an appeal on the basis that it wasn't (yet) assessable as an aircraft?
The CA Tax and Revenue code defines an aircraft* as "...any contrivance used or designed for the navigation of or for flight in the air _which has been flown at least once_..." (Emphasis added.)
The lien date for assessing aircraft property tax is Jan 1st each year, but despite having an FAA N-number, a kitplane that has not flown is not yet assessable as an aircraft. Assuming the kitplane flies in year N+1, it is assessable in year N+2 and thereafter until its FAA registration is cancelled.
Always a dilemma, deciding if it's worth standing up to the tax man saying, "Notice me!"
___
*Part 10, Chapter 1, sect. 5303 (a).
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