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Annual tax valuation

BH1166

Well Known Member
@100 hours flown per year , what would you think a reduction in value should be? My county tax authority asks that I adjust up or down as it applies for annual tax billing.

Thanks
 
My envelope math is that engine plus change labor is 50K and it is rated for 2000 hours. That’s 25 per hour so value drops 2500 for 100 hours.

You could also do a 15 year straight line depreciation on the whole value starting at new cost and ending at some much lower price at the end.

Straight line will make more sense to the assessor but do what they will in your own self interest.

Also can just keep the assessment at what you insure the hull for. Should be a good metric but you might insure for replacement cost instead of actual value.
 
Opposite

Realistically, aircraft values have gone up year over year. It’s not like a car or a singlewide. Everybody hates taxes especially reoccurring ad valorum taxes on an asset that keeps going up up up. For a RV-6 with 100 additional hours, it may be a wash. However, I bet your fine piece of engineering is worth 10% to 20% more year over year. The only good thing about a reoccurring ad valorum tax is that long form filers can itemize the deduction. We used to be able to do that with automobiles but the special interest eliminated the annual ad valorum and made it a one time tax here in Georgia, and thus eliminating it from being claimed as IRS long form itemized deduction.

Most of the county tax offices has a aircraft valuation booklet where they can compute the cost of those 100hr on your Lycoming. However, to keep things simple, I suspect you could just take 5% off the cost of a new lycoming from Vans and reduce your aircraft return value from that. That may be a quick and reasonable approach.


@100 hours flown per year , what would you think a reduction in value should be? My county tax authority asks that I adjust up or down as it applies for annual tax billing.

Thanks
 
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