Here in Oklahoma, we Okies pay $10 a year for a homebuilt & $25 for store bought. No matter how much it's value is.
Marshall
I am located in Colorado. I am not flying yet, so have not yet registered my plane. However, I have been paying sales and use tax to the state and city along the way... as I order and receive large component sections of the kit (wings, fuselage, prop, etc). My plan is to have the tax documents in hand if and when the tax collector comes by for a visit after I register my plane with the FAA.
aircraft components are exempt by statute. CRS 39-26-711(b) "The sale of
tangible personal property that is to be permanently affixed or attached as
a component part of an aircraft."
Home built aircraft by definition are exempt from Colorado Sales/use tax if
the owner purchases parts or components and is the builder/manufacture of
the aircraft.
keep in mind Colorado Vendors have a responsibility to collect the tax. you
may have to pay sales tax the seller.
Idaho state government actually has a mindset supporting aviation. Come on up and enjoy. Just don't kill yourself in the backcountry.
We pay an annual registration fee of $.01/lb of gross weight - $18 for my 7 - in lieu of property tax. The recurring cost is small, but you're going to get pinched big time at least once no matter where you live, triggered by acquisition or pulling an N number: sales (use) tax. Idaho is 5%. You can't duck it because the Feds squeal to the locals, and I'm sure that's true in every state. Use tax would be waived if you bleed sales tax upon purchase in another state. If your state has a sales tax, they expect you to pay them or the originating state. And if you don't have a sales tax, rapacious government wrings it out of you some other way (e.g., OR). Best to live based on where you want to live and not airplane tax issues.
John Siebold
Boise
The State of Georgia wants it ALL. So I had to pay sales tax on items I purchased from Van's in Oregon to the great state of GA.
The sales/use tax is based on where the purchaser resides. To be exempt from sales/use tax in Texas, you have to fill out an "Occasional sale" form. It's not automatic.I haven't paid use tax on my tail kit yet, which I bought new from Van's. I probably will have to at some point, though. I purchased my wing kit USED from a gent in Texas, so I should not have to pay taxes on it, right?
The sales/use tax is based on where the purchaser resides. To be exempt from sales/use tax in Texas, you have to fill out an "Occasional sale" form. It's not automatic.
In Florida it's 6% of the value of the plane. You have to send a bill of sale with the payment. They find out you are building a plane by accessing the registration #. So when the state saw that I had a registration # they sent me a statement asking for bill of sale or purchase receipt. I sent them my airframe kit purchase receipt, since that's all I had two years ago when I started. The point here is they have not asked for engine or avionics costs. In Florida its good to get a registration # early in the process. build9a finishing.
I have an appointment next Tuesday with the tax assessors (I just noticed how appropriately that word begins ) office for my appeal. Good ol Georgia is taxing me on my parts. They found out I am building a kit when I leased a hangar at the local airport. They have assessed my emp, wings, and fuse at around $13K. If it stands I will owe about $130 this year on these subassemblies. I am arguing that the "parts" have never been part of an airworthy structure and thus don't make use of any public facilities. The definition of an aircraft used in the tax code is so vague they could start taxing frisbees, tennis balls, and on occasion, my wife's good china (just kidding). I am not expecting any joy with the assessor's office. My next step is the tax commissioner's office. If anyone has any experience with these things, I'd appreciate any suggestions.
I looked thru this thread and didn't see any posts from Tn. Entries would be appreciated.
Thanks in advance!
Stan
They get us in TN with the use tax. It depends on how much you claim as to what you pay. Some I know have only claimed the full airframe kit cost and others have only claimed the cost of the tail, wing and fuse kit (less finish kit). If you register it in TN, they will send you a notice after about 3 months if they cannot find any tax being paid on it.
Hello all from Alabama. After reading all of the post it I feel like moving to some of the other states just so I can afford my RV when its done. In Alabama, by what I am told, we have to pay a sales tax on the value of the aircraft and it is recommended we have reciepts. We are also have a use tax due every year which is the same as certified aircraft. I just sold my 78 Arrow valued at $82,000 and the tax bill was $918 / year. So I am expecting to pay somewhere aound $2000 for sales tax and another $1000 per year just for flying an airplane I built. Let me know if anyone figures a legal way around this.
Aren't we supposed to "Spread The Wealth"?????????
I agree with Thomas Jefferson who said "Governments should be overthrown every 20 years or so." Don't believe me? ------------Google it.
Anyone have experience of Vermont tax?
Could someone please suggest the best state in the southeast to own and operate an aircraft in? I'm referring to both the yearly cost and the up front cost tax wise.
Best
Brian Wallis
State of Missouri is out to try and get some revenue. Every one that registered a plane in MO in the last 6 years got a use tax bill this past month. Most have interest and penalties that exceeds our original bill.Received notice from Tax Office in same mail that delivered my registration certificate from the FAA. Called tax office and explained that I built and did not buy the aircraft and therefore didn't have a traditional bill of sale. Mailed of copies of major item receipts as requested and a couple of days later received a tax bill. Much to my dismay almost one third of it - or plus 50% - was interest and penalties.
I've often wondered about this. What about forming a corporation in one of the states that is very corporation-friendly (I think Delaware comes to mind, maybe Nevada as well) and have that corporation own the plane. What would be the effect if, let's say, a Delaware corporation owned the aircraft but it was based in another state (like, say, California)?