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Personal Airplane Property Tax / Use / Sales Tax

N941WR

Legacy Member
Having just written the personal property tax to Mecklenburg County (Charlotte), NC for my new pickup and fighting with the county to stop billing me for my old truck ('93 w/ 232,000 miles), which was sold last year, the thought of writing a larger check for my -9, when I get it flying, is on my mind.

I?m curious what the rest of you are experiencing. Do you have to pay property tax on your plane and if so, how much?

Damn, I hate the taxman! (I could go on but this is not the place.)

Maybe this should be in the ?cost of ownership? thread.

Thanks.
 
Also have been thinking about this issue - Alaska

Was about ready to post a thread like this myself. Perhaps a state by state list could be developed out of a thread like this.

I've been in Colorado a short three years and still finding what applies. I don't pay personal property tax on my truck. Most of my life has been in Alaska and there is not personal property tax there. Looked at the Colorado state tax website but did not come to a conclusion yet.

I'll be watching the thread with interest to see what info is posted.

(www.geocities.com/skiflyn)
 
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legalized theft (California)

In California the tax depends on which county you are in and what the value of the plane is. The county takes the liberty to decide what the plane is worth (not real worth but what THEY think) and they tell you that is what they are taxing you at. I just paid $198 for a 1966 C-150. On top of that I pay $50 per month for tie down (outside) at a county runway. I used to pay $15 per month in Washington...go figure.

And now my vent...if I spend my spare time making a plane I get taxed for it. If another spends his spare time making a large scale model plane (not much smaller then my real plane) he does not get taxed for it. If another person spends his spare time watching TV and collecting welfare....he gets PAID for it!! The governmet spent NO effort in making my plane (and should not) and should have NO revenue from it. Taxes in general? Pay for what you use and the services you want...no more...END of venting session. :mad:
 
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Utah

I just paid $50.80 property tax on my 1952 Tri-Pacer. The tax rate is 0.004% of the determined value. The state thinks $12.5K. Current average selling price is between 15-25K (win some - lose some). The 0.004 rate applies to all a/c. An RV valued at say $75k would cost $300 in yearly prop taxes plus the yearly registration fee. The annual registration fee is waived after the plane's 25th birthday. It's now viewed as an antique in Utah. The A/C owner and the state work together determining the value of a homebuilt.

Steve
 
Kansas Personal Property tax

Here in Kansas it varies by county as well. I was taxed last year in Miami county to the tune of $1760. I moved my airplane 15 minutes driving time closer and can look forward to $1949 this yearin Johnson county. This is based on the assesed value of my 2003 RV9E at $51400. On kit planes they value is based set by the owner based on building reciepts. Oh, and when my kit reaches its 30th birthday, it becomes tax exempt.

Nathan Larson
N217JT RV9E @K34
 
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Oklahoma

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
 
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As a CA builder who just filed for his registration as prelude for DARage, I too am curious about this.

Any more feedback from CA builders?
 
Wisconsin

No tax in Wisconsin, except sales tax. We have a one time registration fee of $50.00.
 
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Florida

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.
 
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Build9A said:
In Florida it's 6% of the value of the plane. You have to send a bill of sale with the payment.

<snip> 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.

Shhhhhhhhhh..........
James
(further south in Florida and not yet registered)
 
Texas

In Texas there is no property tax on private aircraft. There is a tax on aircraft used for hire or other commercial uses.

The appraisal district watches the FAA registry and sends everyone a tax bill. If your plane is private you must go down and fill out, sign and notarize an affidavit to get exempted.

Regards,
Mike Stephenson
Skylane & RV-6A (90%)
 
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New York

No property tax here in NY, either. There's a one-time sales tax (variant upon county/city of residence) of about 7%. That's it---so far.
 
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Tax

Florida is looking for sales tax. Not property tax.
All states get you one way or the other, sales tax, state income tax,. Texas gets my $ in land ownership tax. I pay a school Tax of $2000 on my hanger, I have no kids.??

You may avoid some tax by regestering your airplane in Deleware or Nevada and doing a Corp. there.
 
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Colorado Statute 39-26-711

This kinda seems to be saying the airplane parts in Colorado are not taxed. :rolleyes:


Source: Colorado Statutes : TITLE 39 TAXATION : SPECIFIC TAXES : Sales and Use Tax : ARTICLE 26 SALES AND USE TAX : PART 7 SALES AND USE TAX EXEMPTIONS : 39-26-711. Aircraft - tangible personal property.

39-26-711. Aircraft - tangible personal property.

Statute text

(1) The following shall be exempt from taxation under the provisions of part 1 of this article:

(a) Effective July 1, 1984, the sale of aircraft used or purchased for use in interstate commerce by a commercial airline; and

(b) The sale of tangible personal property that is to be permanently affixed or attached as a component part of an aircraft.

(2) The following shall be exempt from taxation under the provisions of part 2 of this article:

(a) Effective July 1, 1984, the storage, use, or consumption of aircraft used or purchased for use in interstate commerce by a commercial airline; and

(b) The storage, use, or consumption of any tangible personal property that is to be permanently affixed or attached as a component part of an aircraft.

History
Source: L. 2004: Entire part added with relocations, p. 1024, ? 2, effective July 1.

Annotations
Editor's note: Subsection (1)(a) was formerly numbered as section 39-26-114 (1)(a)(XXII), subsection (1)(b) was formerly numbered as section 39-26-114 (1)(a)(XXIII), subsection (2)(a) was formerly numbered as section 39-26-203 (1)(aa), and subsection (2)(b) was formerly numbered as section 39-26-203 (1)(cc).
 
Washington Tax

Here in Washington you pay "Use" tax (8.9% in Pierce County) when you bring a plane in, experimental or not, or sales tax (also 8.9%) if you buy it in state. For a kit I'm told they will use the receipts as a basis for the value. After that its $25/year for registration. Kansas also uses the receipts to determine value and told me today that a $50,000 RV-8 based in Riley County would cost me $1800/year. Arizona has no fee for experimentals.
 
Arizona Tax

Does anyone know the tax in Arizona?

Also, is it possible to register a plane in Arizona even though I live in Utah but own property in Arizona?
 
Arizona tax

Just did this.

Planes are taxed (personal property) at 1/2 % per year of the state's valuation (blue book).
BUT... gliders, antiques and experimental are registered (taxed?) yearly at a flat rate of $25 per year.

If you bring a plane into state and bought it from a private party (not a dealer) there is no use tax (sales tax) applied.

I had my Tiger in a MD. corp. when I had a partner (his idea), but it cost the same amount as the tax AZ charged, so I quit it when I bought him out.

If you establish an AZ address, I guess you could do it.. but does that make you liable for AZ income taxes?

Details are on the state web site under Aviation...

gil in Tucson
 
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Google and don't get caught

ScottSchmidt said:
Does anyone know the tax in Arizona?

Also, is it possible to register a plane in Arizona even though I live in Utah but own property in Arizona?

Google personal property tax Arizona, Utah, airplanes or an combo or these and other key words. From above experimental a/c are exempt, which is cool, but could change tomorrow. I am not saying Gil is wrong, but what ever state you live in you should get the tax code and see it in writing.

For AZ:
http://www.revenue.state.az.us/brochure/606.pdf
http://www.revenue.state.az.us/brochure/545.pdf
http://www.revenue.state.az.us/Forms/Property/usecode.pdf
http://www.cityofprescott.net/_d/use_tax.pdf

For UT:
http://www.co.davis.ut.us/assessor/personal_property/aircraft.cfm

I know you are not asking can you cheat but some people do try to use the two state scam to avoid taxes, with differnt levels of success.

My suggestion is register and pay taxes in the same state you live and will base the plane. Some states have a one time tax and others charge tax yearly. Some states have exemptions and you may be able to get under one of those with creative accounting.


This is another way to put it; Can you cheat on your taxes? Yea sure you can, but of course its illegal and penalties for getting caught can be high.


State auditors and State Police cruise airport ramps, marinas and highways and take down registration #'s of planes, boats and pull over out of state cars that get noted (logged into the computer) repeatedly over a period of time. A simple check for the state is to check if you have a driver license number in that state and where the plane is registered. If the name matches and the addresses differ, you will get a letter and the chance to explain. Many states have a TAX sticker that allows a quick check to see if you're payed up.


A millionaire with several private jets planes, boats and cars tried this, setting up a fake business in a neighboring state with no PP Tax, but based and used the assets in another. He got caught. PP tax may not get you jail time but it will get you into some serious back taxes and fines.

The best you can hope to do is prove the lowest value to lower tax liability. The best way is to save all the receipts and show them what it cost, and be sure to show any sales tax you payed in that state, which is deduct. I know one guy who just showed the auditor the cost of the kit and they took that. That was a wind fall savings for him, but don't count on that. Since most of us buy from out of the state, sales tax free, we enjoy some nice savings during the build process, but someone sometime is going to have their hand out sooner or later. The Government (mostly states) want to do away with sales tax free internet sales. If they change that rule you will no doubt have to pay sales tax on the engine, prop, airframe kit and every nut an bolt you buy from Spruce or who ever. The good news, if you can call it that, is that would come off the PP tax bill (may be). If they double dip, sales tax and PP tax (which is not inconceivable since they do that with cars), than I would move to another state. I know Oregon is one of the states without PP Tax.

Back in the 80's homebuilt planes where less wide spread, so you could tell the state you built it for $10-grand. They took what you said, wrote it down and taxed on that, done deal. Unfortunately we are victim's of our own success. If you tell them your RV-X cost $10,000 now a days, they will laugh at you. State auditors are more savvy and know what RV's sell for. Every state is different and had to go thru this in two states. Some states like NY want you to pay as you go, PP tax on the tail kit, wing kit, fuselage kit, etc..... before you finish it; flying or not they want you to show (give) them the money. :eek: Of course the state may have a hard time enforcing this.

So my suggestion is to anyone is just follow the rules and you won't have to worry about looking over your shoulder. Yes you can register in another state and be able to avoid taxes, but if the sole purpose is to avoid paying the state you live and operate out of, you could get caught. There are allowances for people who do live in two states and are only part time residence or each. That's important in a snow bird state like AZ. Love AZ by the way and stayed there a lot over the years, since my Dad lived there in the PHX area.

I know a guy in WA state that got in an argument on the airport ramp with a State Trouper, who was doing a "tax ramp check". The Trouper asked why he did not have a tax sticker on his RV-4. My friend almost got arrested arguing. Actually he got bum advice. Most states have an exemption for "manufactures". Since we're the manufacture (in the FAA eyes) we can claim we're allowed the exemption, but this has been disallowed in states like WA. For tax purpose manufacture is someone who is in business of building for profit and thus is paying other taxes. Since we can not build for profit or manufacturing for resale, it makes sense. Just know the rules of the game.

From what I see UT is not that bad. It looks like $400 on $100-grand. So what they think a RV-10 is worth is up for grabs. I know you could build a basic RV-10 for around $100 to $120-grand without much problem, but than people are asking $225,000, so your job will be to assure the state your plane is worth less. If you have paper to prove it than they will be more likely go along. I can't see how they can argue with the facts and charge you for your own labor.

George

IS THERE ANY CENTRAL PLACE TO LOOK UP PP TAX ON EXPERIMENTAL AIRCRAFT FOR ALL STATES? That would be nice resource for all.
 
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Value vs. cost

George said:
I can't see how they can argue with the facts and charge you for your own labor.
If only this were true. If you built a beautiful house yourself out of scrap lumber and supplies you got for free from a demolition site, the tax man will try to tax you on the value of your house, not what it cost you to build. I'd bet the same will apply to the aircraft you built. If all of a sudden everyone on the planet wants to fly an RV, and they are willing to pay $500,000 for one, guess what - you're gonna owe a lot more tax!
 
Illinois tax

Be careful what you post here. The "tax man" can read this too :mad: I paid sales tax in IL., didn't like it :mad: We don't have personal property tax. I am NO FAN of the blood sucking law makers.

"The power to tax is the power to destroy"
 
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North Dakota tax

ND:
No personal property tax.
5% state sales tax(ouch).
Annual aircraft registration $36 for an RV(fee is based on gross weight).

Jay Pratt nailed it on the head: the taxman is going to get you one way or another. So smile and say, "Please, sir, may I have another!"
 
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Utah tax

gmcjetpilot said:
I know you are not asking can you cheat but some people do try to use the two state scam to avoid taxes, with differnt levels of success.

My suggestion is register and pay taxes in the same state you live and will base the plane. Some states have a one time tax and others charge tax yearly. Some states have exemptions and you may be able to get under one of those with creative accounting.


First of all I never do anything illegal in regards to taxes but try to work the system as much as legally possible limit my taxation liability. We have a CPA do all our taxes as well and give advice so that we know when we have crossed the line.

Our system is not fair but if I can legally register my plane in Arizona because I do own houses down there than I want to use that to my advantage. I will call my CPA and get back to you guys and let you know what she says.
Our system is broke and may never be fixed. Our system punishes business leaders who offer jobs, and reward those who don't want to put out the energy required to work in our country. It really is too bad.

I would guess that the RV-10 will be valued at $120,000 (I hope and not $250,000) which will put my tax here in Utah at $480 per year, but $25 sure sounds better. That is 10 hours of gas I would save. That is about the gas it will take me to get to Oshkosh and back. I wanna save that money.
 
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Utah tax

CPA said even though I live in UT you can register in AZ but it is a little risky. But the only risk in being caught is paying back taxes to the State of Utah and nothing else. Not a huge penalty.

Due to the time I have at this point I will stay in UT

I may have lost this battle tax man, but I'll be back!!!!!
 
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Indiana tax

Hey all....

Speaking of vehicle taxes, I live in NW Indiana. We pay license plate fees based on what we buy a vehicle for. Its not unusual to see license plates over $500 here....I be HAPPY to have to pay $45 taxes on an airplane....lol :eek:

Alan
 
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North Carolina tax

N941WR said:
****, I hate the taxman! (I could go on but this is not the place.)

Maybe this should be in the ?cost of ownership? thread.

Thanks.

I hate it too, but it's inevitable so just suck it up. I told my NC county when the plane was done, they asked what it was worth and sent me a bill. I'd rather do it that way instead of getting a surprise bill for back taxes and fines, etc. :mad:
 
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Yep

ScottSchmidt said:
First of all I never do anything illegal in regards to taxes but try to work the system as much as legally possible limit my taxation liability.
Scott I hope you did not think I was implying you would do anything wrong, as you do have property in both states, and think you should be eligible to some extent as your tax pro said, who knows more than I want to know about taxes.

Do everything you can to be eligible to any tax break that is offered. I think what Larry said is true, know the rules and fight for every break you can get, but eventually you'll have to pay something. Many states have the one time excise tax, payed once and than just a yearly small fixed nominal registration fees after that. That's what I am use to. The best you can do is get the "valuation down". George
 
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Nebraska

In Nebraska no PP tax. If you buy an airplane they sniff out the sale through the FAA and send you a statement and ask for a copy of the bill of sale and you will be taxed a one time fee of 5.5% sales tax. I have my N number reserved so I will get a statement form the state wanting to know how much I paid for it. They will get a part of the kit price.
I have my own strip that I fly my J-4 off of. I did have a Rallye but sold that so I could turn it into an RV. I rented a hanger at 6K3 for the first flights of my 9-A, it costs $40.00 per month.
Cheers
 
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Idaho

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
 
Idaho

Here in Idaho we pay Idaho tax at the rate of $.01 ( one cent) for each
pound of gross weight up to a max. of $200. No County tax as long as you
pay the state tax. my RAV4 gross will cost $15 a year and if I fail to pay
the state tax it will cost about $1500 property tax.
Ted
 
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Pro active States

Idaho is awesome awesome awesome. Flying back from Oshkosh I stayed at Johnson Creek, what a treat. I never wanted to leave. I don't mind paying $25-$50 a year to support aviation in my state, but I like to see something for it. Why does a state that collects the least provide the best aviation support?

Many states have a state aeronautical divisions. These divisions do all kind of functions (besides collect registration fees) like maintain airports and search and rescue for example. Some states have Aeronautical divisions more in name than in usefulness, but States like Idaho are way above any I have experienced with fantastic aviation support and amenities. Way to go Idaho.


States get massive federal monies, and most of the aviation infrastructure is federally funded. States also get tax revenues from aviation fuel and aviation business. It makes sense to support aviation and charge a yearly nominal fee and NOT gouge GA with PP tax, since aviation is a money maker for states. The PP tax is a drop in the bucket to the millions they receive for the Fed Gov and industry. They exempt commercial aviation to promote that. Why not promote GS. If GA went away in a state the loss would be huge. It is just a matter what the politicians want to do, which is usually put money in the state's coffers. Most politicos are clueless and think private aviation is either for rich people or not valuable. What can we do about it?

Anyway it is all worth it when you go fly the back country in Idaho as invited by our Brothers in the "Esto Perpetua" (Let it endure forever) state, aka, famous potatoes/Spuds R Us)

I like the book: Flyer?s Recreation Guide - NW, by Reed I. White. There are many good books. It is not hard and some strips are just plan beautiful and garentee you will not want to leave. George
 
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North Carolina

redbeardmark said:
ND:
No personal property tax.
5% state sales tax(ouch).
Annual aircraft registration $36 for an RV(fee is based on gross weight).

Jay Pratt nailed it on the head: the taxman is going to get you one way or another. So smile and say, "Please, sir, may I have another!"
NC is really NJ of the South!

7% income tax
7.5% Sales Tax
1.116 / $1000 property tax + Fees
+ personal Property Tax (cars, trailers, boats, planes, etc.)
$25 / yr for each dog
(I couldn't find the auto fuel tax rate but I believe it is at least $.10 higher than South Carolina.)

You get the idea, this is not a tax friendly state.
 
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Just a quick note to say thanks to the folks who paid their taxes in the '60s so that I could be educated enough to build an airplane when I grew up. :D As for you kids today, suck it up. I got mine.:rolleyes:
 
Georgia tax

Anyone have any information for Georgia?

I googled it and found the forms, but there's no rate or anything on there. I'm assuming you submit the form and the state kindly sends you a bill. Some of these numbers people are posting are downright frightening!

The Georgia form requires you to list all the equipment, avionics, total time, etc which I assume they use to guestimate a fair price.

$1800/yr to continue to own something you built with your own two hands? Weird. That increases the FIXED costs of owning an RV by $150/month.

Anyone know when the next tea ship is scheduled to dock in Boston Harbor? :D
 
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Ohio tax

OHIO
Personal property tax? Call it what you will..."A rose by any other name..." Here in Ohio we have a "registration fee" of $15/seat/year for airworthy aircraft. So, I won't pay until it is done. Unairworthy for other reasons -- no pay.

You might remember that just a couple years ago Ohio slapped a flat $100.00 fee on ALL aircraft registered in Ohio! For example, Cub owners paid the same as a G-5 corporate jet! Thanks to EAA (national) and many local EAA chapters' efforts, the rate was reduced to the $15/seat/year about a year ago. There were a couple of articles about the exorbitant fee in Sport Aviation in the last year or so.

SALES TAX NOTE: On another (certified) plane I purchased from an individual from out of state, the Ohio Tax Department sent me a reminder to pay sales tax for the amount of the purchase. They must have checked the FAA registry. After sending it to them (6% of the purchase price), I got the check back in about a week with a stament that the tax doesn't apply because it was purchased from an individual. It must make a difference whether it was purchased from a broker or manufacturer? Needless to say, I didn't press the issue... :)

Totally taxed out, and on a fixed income...

UPDATE: I just checked the Ohio info for Aircraft...

Previously I posted that an aircraft needs to be airworthy for the Ohio Use Tax to apply. WRONG! It applies to ANY FAA registered aircraft in any condition. Still $15.00/seat/year, however.

http://www.dot.state.oh.us/Aviation/Aircraft.htm

Ohio 2006 Aircraft Registration Form is available at the above website, too.

Okay, now I have it right.... After downloading the application for Ohio Aircraft Registration, there is a block to specify "not airworthy" (Group B on the application) and no payment of fee is required, but it still has to be registered -- as I understand it. Go figure.

My last post on the subject!

Don Gray
Cortland, OH
N17QB (about half done and interested in a partner in NE OH)
 
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Oregon tax

Oregon has no sales tax, so we don't have to worry about that. :D

From what I could find, (after a few minutes with google) it appears that there is no personal property tax, except for those used by businesses.

However, there is a bill that the state is working on that would create a "Luxury Tax" on things including Airplanes, kit planes, and even gliders. Here is the Bill's current status.

Homebuilt planes cost $37 to register.

That is all I could find. If someone else has better info, please post it.
 
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Please report

Hope to hear from guys in "every" state, about the tax situation on our RV's.
We are considering moving, after our RV8QB (Uncle Hank) has flown and proven safe and reliable. We're very interested in "taxes".
My research, to date, shows taxes, on RV's, to be from almost nothing to extortion, but this info can be very hard to dig out.

I really appreciate all responses to this thread.
Thanks!
Roy C Lewis Jr
 
New Jersey tax not like North Carolina tax

N941WR said:
NC is really NJ of the South!

7% income tax
7.5% Sales Tax
1.116 / $1000 property tax + Fees
+ personal Property Tax (cars, trailers, boats, planes, etc.)
$25 / yr for each dog
Speak for your own state. For NJ it is:
~5 % income tax (between $75k-$500)
6% sales Tax (clothing, footwear, unprepared foods and medicines are exempt)
No property tax on vehicles (Cars-cost to register, planes-no registration, not sure about boats)
pets are dependant on each town

I'm sure once I register, my RV they'll come with their hand out for the use tax (Tax on items purchased out of state). When I purchased my Cardinal, they wanted to collect sales tax but since the purchase was "casual"-from an individual and not a dealer, there was no tax due. That tidbit of info save me a few thousand $.
 
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Ohio tax

William,

No slight intended with that comment. I lived in NJ for 10 years before moving down here in '95. At the time I moved I thought the taxes up there were crazy high. After living here and watching our taxes go up and up and up I'm a bit pissed off by the continual increases with nothing to show for it.

As for the Ohio $$ per seat tax, I'll take that any day. I'm hearing something like $1,400 to $1,700 per year in property tax. (That needs to be verified, and at this point I consider it a rumor but knowing how much I pay on my truck every year it seems reasonable.)

w1curtis said:
Speak for your own state. For NJ it is:
~5 % income tax (between $75k-$500)
6% sales Tax (clothing, footwear, unprepared foods and medicines are exempt)
No property tax on vehicles (Cars-cost to register, planes-no registration, not sure about boats)
pets are dependant on each town

I'm sure once I register, my RV they'll come with their hand out for the use tax (Tax on items purchased out of state). When I purchased my Cardinal, they wanted to collect sales tax but since the purchase was "casual"-from an individual and not a dealer, there was no tax due. That tidbit of info save me a few thousand $.
 
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Illinois use tax

i came across this site while searching for myself on paying use tax (IL) for each individual kit as i buy them. it's a pretty good list of the general tax rules for each state. they are listed alphabetically and are grouped into sections for easier browsing.

State by state tax requirements
 
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Registering "Early"

Someone mentioned that if you register earlier (ie: before the plane is finished?) you might be able to reduce overall perceived value and thus the use tax claimed on your RV.

When we say 'registering', are we talking about registering for an FAA N-number? If so, how early can you register for a tail number? (I have one reserved but I didn't think you could register for the actual N number until closer to signoff).

Thanks!
 
ccrawford,
I paid my $10 to the FAA and got my N-number reserved, and all I've got is preview plans. I'll be asking my tax guy in 2 weeks what my situation will be, and I'll summarize it here once I know.
 
Interesting New York Tax Law

This thread is getting a mile long but I want to pass along to NY builders something that is truly unbeliveable to me as a NY resident. As most of you may know about the only thing NOT taxed here is the air we breathe and that's probably not for long. When it came time to buy my new engine, I was very pleased to find out from Mattituck that there is NO sales tax on aircraft engines bought here in New York. I was told that it was by a law passed to help the NY aviation businesses. Sure enough when I picked up my motor it was true. You do have to pay a one time sales tax on the completed plane but in my case the price of the engine will not be included. After the FAA informs the state of your registration they come after you for that. At least I'll save a little bit. You know I still can't believe this myself.
 
Montana tax

Like Idaho, Montana is also a great place to own a plane. No sales tax and a nominal (approx $50) annual registration fee. My recent move from Wisconsin will save me several thousand $$ when my plane is complete this Spring. :)

Joel Haynes
7A Bozeman
 
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EAA Magazine

They have a pretty good article in this months Sport Aviation. It has some good advice. It is lacking in details because of the obvious issue, it is state by state, but it does a good job of explaining different taxes like "use" tax. It does seem resigned to the fact avoiding tax is futile, but at least it gives a good tip to minimizing it. Also it confirms my feeling states have become more aggressive in getting taxes that have been on the books for a long time but not enforced. It was interesting that most mail order "personal properties" bought over say the internet are subject to taxes, which most don't pay, primarily because they don't have a way to know about it. Unfortunately with the FAA registration they have a way to check to see if you payed or not.

The best advice was to pay as you go, purchase the airframe kit, pay when you get the prop and engine....... or at least pay before it is registered. The thinking is they will be happy with the individual tax you paid on the parts and of course there are a lot of parts, wink wink nod nod, they don't know about.

Paying tax early on the individual items could save you money, so when and if they call you, you paid and have your tax statement to show for it. States with income tax apparently have a place to pay PP tax for items bought outside the state (volintarily).

I never would have thought paying the tax early would be a benifit. If you wait for them to find you, you may be subject to back taxes and penalties. Also if you wait you'll be presenting a whole airplane. If you don't have something to show what you paid, you might be paying what they think. That might be a lot more than if you just paid up front. George
 
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Michigan tax

Here in Michigan, its 6% sales tax and $1 per pound every year. They have also gotten wise to homebuilts, so they want to see invoices for kit, engine, prop., avionics. If they think that you are skimging they will bill you more!!! They did this to a local builder.

Frank
 
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ccrawford said:
Someone mentioned that if you register earlier (ie: before the plane is finished?) you might be able to reduce overall perceived value and thus the use tax claimed on your RV.

That was me in another thread (maybe on another site :eek:)

That was for sales tax, not personal property tax. I took a loan and NAFCO had me sign a FAA registration form which they then mailed in. About 6 weeks later, I got a letter from the state saying the FAA notified them of a new aircraft registration and that they demanded a 6% sales tax. I sent in the papers and tax for the amount I had in the kit at the time and they were happy. I won't be registering it later after all the parts are installed.

My kit is still under construction but it is registered. I no longer need to keep renewing my N number reservation. I have my AC Form 8050-3 Certificate of Aircraft Registration in my hand. Now if they had just sent the Airworthiness Certificate along with it.....

Jekyll
 
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Jekyll said:
That was me in another thread (maybe on another site :eek:)
..
Jekyll

Ah ok! I'm planning on registering my N-number next year, (probably a year before the plane is ready) so I guess I'll see what happens. Thanks for the info!
 
Georgia tax

Anyone know the tax percentage in Barrow county?
Looking for best option, Plane was bult in Newton county and flown there for a couple years. Currently hangered Barrow and flown there.Have the option of California (registered there)
Im guessing it may be more reasonable here
 
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Newco6A
Check the "mil Rate" in each county. I have a lake lot in Hancock Co & live in forsyth Co. The tax rate in Hancock is almost twice that of Forsyth. Therefore, my boat "Lives" in Forsyth Co
 
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