What's new
Van's Air Force

Don't miss anything! Register now for full access to the definitive RV support community.

Taxes

ExtraKatana

Well Known Member
Curious how aircraft taxes are levied in your State. Here in Ok we pay 3.25 percent upon purchase but our annual registration is twenty dollars.
 
In Michigan we pay 6% of the purchase price, and then $.01 of the gross weight annually. That amounts to $18 for my RV8 annually.
 
Maryland Sales and Use Tax

"Maryland State Sales taxes apply to purchases made in Maryland while the use tax refers to the tax on goods purchased from out of state". Maryland has 6% TAX on Purchases or Use, the Good News is its only one time, and they offer some credits if similar taxes were paid to another state by same purchaser on same item if verifiable with application for exemption.
 
In GA, past any purchases…to own, year after year, you pay personal property tax based on the county your plane “lives/domicile” called millage rate. This percentage is based on fair market value. In my case, I pay $436 annually. The amount can change based on what i report as “value” each year.
 
In Ohio, normal statewide sales tax is 5.5%, plus any local taxes that may apply, which could be up to an additional 3%. Ohio exempts sales and use tax on casual sale of aircraft (no broker). The annual state of Ohio registration fee is $15 per seat, so $30 for my RV6.
 
When buying an aircraft in Texas, you will pay between 6.25 percent and 8.25 percent sales and use tax on the aircraft’s sales price, less the value of any trade-in. In most cases, the total tax paid is based on the rate in effect at the seller’s place of business.

The state sales and use tax rate is 6.25 percent.
Local sales and use tax rates vary throughout the state, up to 2 percent.
The maximum combined tax rate is 8.25 percent.

Purchase from occasional seller: If you do not have a Texas Sales and Use Tax Permit and are not required to have one, you can buy an aircraft tax free from someone who is not in the business of selling, leasing or renting taxable items or services.


https://comptroller.texas.gov/taxes...uying an aircraft in,tax rate is 6.25 percent.
 
Massachusetts

No sales or use tax on airplanes, parts or labor in Mass. $100/year to register up to 2000 lbs max weight. $165/year up to 3500 pounds.
 
Minnesota — state and local sales tax when the plane is purchased (here, it’s 7.75% of the BOS). No annual personal property tax, but there is an annual registration fee of $100.
 
CALIFORNIA.... sales tax of 9.5% +- on purchase price. Then, 1% annually on the value that the county thinks your aircraft is worth based on like aircraft advertised on Barnstormers and trade-A-plane.... They have never looked at any aircraft that I have owned.

You purchased an RV8 for $125,000.00. Tax due = $11,875.00. Annual tax = $1,250.00. THE BIG PLUS IS..... you do get to fly vfr over 300 days per year.
 
Have been looking at West Virgina, varies by county, but in Bluefield, WV it would be around $1500 a year personal property tax on a plane valued at $100,000. Could get very expensive to take my RV-10 there. They said willing to negotiate on value, but that could be variable.
 
CALIFORNIA.... sales tax of 9.5% +- on purchase price. Then, 1% annually on the value that the county thinks your aircraft is worth based on like aircraft advertised on Barnstormers and trade-A-plane.... They have never looked at any aircraft that I have owned.

You purchased an RV8 for $125,000.00. Tax due = $11,875.00. Annual tax = $1,250.00. THE BIG PLUS IS..... you do get to fly vfr over 300 days per year.

Just to clarify: the state charges a 9% sales or use tax upon purchase. If you are a builder, that tax is due the same tax year as when you purchase a part. No tax on your labor. The ‘annual’ tax is a 1% county property tax, assessed every Jan 1. If you are buying, or completing, an airplane, close to the new year, you can save yourself one year of property taxes by closing the sale, or having your airworthiness inspection, after Jan 1, as opposed to just before the first.
 
Just to clarify: the state charges a 9% sales or use tax upon purchase.

Actually, I think it's 7.25% sales tax to the state of California, plus whatever local jurisdictions add in district taxes. Depending on where you live, the total sales tax paid can range from 7.25% to about 10.25%. :eek:
 
In Nevada the annual tax is based on value. I took a long time to build my aircraft. (11 years) so they depreciated the parts value over the time I had owned them. I registered it as a Jones1 so that they would not look at Barnstormer and use what they thought was the value. In Nevada they depreciate the asset over time. The fact that aircraft values (based on dollars) is going up is irrelevant. By the way aircraft are not worth any more than they were 10 years ago. The money is just worth less.
 
AZ Taxes

In Arizona, the answer is "it depends".

Sales tax levies vary by jurisdiction. In my area, it's a little over 6%. BUT, the key is who you purchase the A/C from. If it's from an individual, e.g. someone who isn't engaged in the business of buying/selling aircraft, you can ask the seller to sign an affidavit of casual sale. In that case, there is no sales tax owed. Realistically, you're likely to get billed for sales tax at some point after the registration transfer takes place, but all you need to do is return a copy of the affidavit along with a brief cover letter, and the bill is withdrawn.

For annual registration, experimentals get a fixed rate levy--$25/year. Yet another advantage v the certified world.
 
In Arizona, the answer is "it depends".

Sales tax levies vary by jurisdiction. In my area, it's a little over 6%. BUT, the key is who you purchase the A/C from. If it's from an individual, e.g. someone who isn't engaged in the business of buying/selling aircraft, you can ask the seller to sign an affidavit of casual sale. In that case, there is no sales tax owed. Realistically, you're likely to get billed for sales tax at some point after the registration transfer takes place, but all you need to do is return a copy of the affidavit along with a brief cover letter, and the bill is withdrawn.

For annual registration, experimentals get a fixed rate levy--$25/year. Yet another advantage v the certified world.
What does Arizona do with an airplane being brought in by someone that is moving into the state?? I'm not too eager to pay sales/ use tax on an airplane that I have owned for several years.
 
AZ Exemption, Your millage may vary

I found this, not sure if it applies to aircraft.

The AZ statutes are searchable https://www.azleg.gov/arstitle/
You could find all of the aircraft references

Title 42 Taxation
https://www.azleg.gov/arsDetail/?title=42

Title 42 Article 5159 Exemptions
https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/42/05159.htm


Exemptions

6. Tangible personal property brought into this state by an individual who was a nonresident at the time the property was purchased for storage, use or consumption by the individual if the first actual use or consumption of the property was outside this state, unless the property is used in conducting a business in this state.

I found this, not sure if it applies to aircraft.
 
Texas

No sales tax if you buy from individual that doesn’t sell anything commercially that they collect sales tax or occasional sale. No yearly property tax unless used in business, which is forbidden for experimental aircraft.
 
Minnesota — state and local sales tax when the plane is purchased (here, it’s 7.75% of the BOS). No annual personal property tax, but there is an annual registration fee of $100.

Guessing a stupid question: What is BOS?
 
Wisconsin

Wisconsin has no sales or use taxes on aircraft parts. Since I built my airplane, the entire thing was considered parts, including the avionics and engine and airframe, prop, etc. 0% taxes on the whole airplane.

To boot, for experimental aircraft have a one time registration fee of somewhere around $40.

There are NO county taxes levied here on aircraft.

Consumable items (oil, filters, fuel) are taxed.

Wisconsin is a great place to build/own an experimental aircraft. Me thinks it has something to do with the EAA being based in Oshkosh?
 
Guessing a stupid question: What is BOS?

I say bill of sale because that’s the amount on which the state bases sales/use tax and “sometimes” that number is different than the actual purchase price.
 
Back
Top