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Anyone know how or if sales tax is applicable to private sales of a complete vans?

O

Oroyo

Active Member
I’m buying one in Wisconsin and will keep it in Utah. I’m reading up on it but I am highly confused and it seems the only advice is to call the localities and beg them to take as much money as they wish which seems like odd advice to me.
 
Is this a kit or a flying airplane? regardless, you will need to register the aircraft in your name with the FAA and State where it is hangared/kept and pay the applicable sales or use tax when you register for that state. typically within 30 days and Budget 5-7%. Some states audit these sales too. I received a letter from California to validate a sale I made to a fella there three years prior, asking to confirm the sale price to validate their sales tax collected. Thankfully in this case it all checked out, I could see what the buyer had indicated for a sale price.
 
As a note, each state is different and may or may not have a "state registration" for aircraft. California, for example, does not require aircraft to be registered with any state agency (like, say, DMV). BUT, each county collects annual property taxes on aircraft based in that county. A quick search turns up info on which states require aircraft registration (e.g., AOPA articles).

It appears that some states require *pilots* to register with the state, too...I didn't know that. Not sure how that's legal, since Airmen's Certifications are done by the federal government, but IANAAL (I am not an aviation lawyer) :).
 
I guess I don’t know what a use tax is. I’m from oregon where there isn’t even sales tax at all and I’ve never heard of a use tax.
 
Use Tax is generally used so that businesses cannot avoid their tax obligation by "buying" out of state. Ex. A 30k purchase of computers for a data center is a taxble sale where the equipment will be installed/used. You cannot omit that tax by ordering from some other tax jurisdiction with less or zero tax, you must self assess the Use Tax.

Individuals routinely flout this bit of tax law for many purchases, which is why things like airplanes are monitored for compliance, and why there were many adjustments made to taxability on Amazon and other sales engines.
 
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