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State use and sales tax on experimental aircraft

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Dennis Jones

Joined: 17 Sep 2006
Posts: 45
Location: Poplar Grove, IL

Posted: Fri Aug 08, 2008 11:24 pm Post subject: State use and sales tax on experimental aircraft

Any experience or knowledge on either Texas or  Arizona on how these states treat sales and use tax on a completed  experimental aircraft? In Texas do they allow the use of the "occasional sale"  exemption? 

  

 Jonsey

   [quote][b]

pbesing(at)yahoo.com
Guest

Posted: Sat Aug 09, 2008 9:17 am Post subject: State use and sales tax on experimental aircraft

Arizona airports provide the department of transportation a list of all the airplanes kept there, especially if you rent a hangar or tie down.  The state will send you a notice saying that you must register and pay tax on the airplane, or provide proof that tax was paid.  You also have a sticker you have to buy and is an annual fee of .005 of the 'assessed' value of the aircraft.  



Paul Besing

RV-4 N73DD

Arizona

---

Roger Lee

Joined: 10 Jan 2006
Posts: 1464
Location: Tucson, Az.

Posted: Sat Aug 09, 2008 1:26 pm Post subject: Re: State use and sales tax on experimental aircraft

Hi Dennis and Paul,



I live in Az. and have had a few planes. If I remember right. If you buy a used airplane from and individual then there is no sales tax. If you buy a new plane there is even if it's purchased out of state and the tax was not paid in that state. The Az. state registration fee for experimental is $25, but GA aircraft are a lot more expensive.

_________________
Roger Lee
Tucson, Az.
Rotax Instructor & Rotax IRC
Light Sport Repairman
Home 520-574-1080 TRY HOME FIRST
Cell 520-349-7056

timb

Joined: 16 Apr 2008
Posts: 77
Location: Frankston, Texas

Posted: Sat Aug 09, 2008 3:13 pm Post subject: State use and sales tax on experimental aircraft

 	  Quote: 	
		  >>You also have a sticker you have to buy and is an annual fee of .005 of the 'assessed' value of the aircraft. <<<  

   
	


OMG!  80k * .005 = $ 400.00  Who gets to determine the value?  I live in Texas for nearly 2 years now and have heard nothing from nobody.  I did not build or register it here, but it has been located here since October of 06.  Thankfully it isn’t on a public airport where it might get reported to the state.  

   

Do Not Archive!  

     

Tim Bryan  

RV-6 Flying  

  

N616TB over 100 hours now        

From: owner-rv-list-server(at)matronics.com [mailto:owner-rv-list-server(at)matronics.com] On Behalf Of Paul Besing

 Sent: Saturday, August 09, 2008 12:16 PM

 To: rv-list(at)matronics.com

 Subject: Re: State use and sales tax on experimental aircraft  

  

  

       

Arizona airports provide the department of transportation a list of all the airplanes kept there, especially if you rent a hangar or tie down.  The state will send you a notice saying that you must register and pay tax on the airplane, or provide proof that tax was paid.  You also have a sticker you have to buy and is an annual fee of .005 of the 'assessed' value of the aircraft.  

 

 Paul Besing

 RV-4 N73DD

 Arizona  

    

     

---

_________________
Tim Bryan
RV-6 Flying
N616TB

pbesing(at)yahoo.com
Guest

Posted: Sat Aug 09, 2008 9:27 pm Post subject: State use and sales tax on experimental aircraft

From the Arizona registration publication:

"The Aeronautics Division annually determines the value of aircraft for tax purposes using industry sources and guides.  The value assessed is based on the average low wholesale bluebook value for the make, model, and year of the aircraft.  No consideration is given to condition, equipment, or purchase price."



The other post about $25 is ONLY for storage or under repair.  



Keep in mind, this is an ANNUAL fee.  So yes, an $80k airplane costs $400/year to register.  Once you register, then the tax man will also come talk to you to see if you paid sales tax of whatever percent....I have yet to have the bill, but I am about to register so we will see.  I imagine it's 5-7% sales tax too..



Paul  Besing

RV-4 N73DD

Arizona

---

pitts_pilot(at)bellsouth.
Guest

Posted: Sun Aug 10, 2008 5:57 am Post subject: State use and sales tax on experimental aircraft

This is a good example of why you don't want to register your RV as an 

RV-x ..... instead make the designation as nebulous as you can.  We used 

to have a 'sticker fee' in FL, but it was a hit-or-miss thing where the 

tax man would drive through the airport recording N#s ..... and sending 

a bill to the ones that didn't have the sticker.  My planes have been 

hangared so didn't have the problem.  That law is either off the books 

or not being enforced at all.  The tax guy here will look at what your 

airplane is selling for in TAP and use that as a figure.  If you're 

proactive and provide the tax that you compute ..... he's usually happy.

Linn

do not archive

Paul Besing wrote:

[quote]  From the Arizona registration publication:

 "The Aeronautics Division annually determines the value of aircraft 

 for tax purposes using industry sources and guides.  The value 

 assessed is based on the average low wholesale bluebook value for the 

 make, model, and year of the aircraft.  No consideration is given to 

 condition, equipment, or purchase price."



 The other post about $25 is ONLY for storage or under repair. 



 Keep in mind, this is an ANNUAL fee.  So yes, an $80k airplane costs 

 $400/year to register.  Once you register, then the tax man will also 

 come talk to you to see if you paid sales tax of whatever percent....I 

 have yet to have the bill, but I am about to register so we will see.  

 I imagine it's 5-7% sales tax too..



 Paul Besing

 RV-4 N73DD

 Arizona



 ---

webmaster(at)flion.com
Guest

Posted: Sun Aug 10, 2008 7:13 pm Post subject: State use and sales tax on experimental aircraft

The assessed value only applies to certificated aircraft and they use a ‘low book’ value.  Experimentals are $25 a year.  

   

Patrick Kelley – RV-6A – Almost flying in Flagstaff, AZ  

       

From: owner-rv-list-server(at)matronics.com [mailto:owner-rv-list-server(at)matronics.com] On Behalf Of Tim Bryan

 Sent: Saturday, August 09, 2008 4:12 PM

 To: rv-list(at)matronics.com

 Subject: RE: State use and sales tax on experimental aircraft  

  

  

   

 	  Quote: 	
		  >>You also have a sticker you have to buy and is an annual fee of .005 of the 'assessed' value of the aircraft. <<<  

   
	


OMG!  80k * .005 = $ 400.00  Who gets to determine the value?  I live in Texas for nearly 2 years now and have heard nothing from nobody.  I did not build or register it here, but it has been located here since October of 06.  Thankfully it isn’t on a public airport where it might get reported to the state.  

   

Do Not Archive!  

     

Tim Bryan  

RV-6 Flying  

  

N616TB over 100 hours now        

From: owner-rv-list-server(at)matronics.com [mailto:owner-rv-list-server(at)matronics.com] On Behalf Of Paul Besing

 Sent: Saturday, August 09, 2008 12:16 PM

 To: rv-list(at)matronics.com

 Subject: Re: State use and sales tax on experimental aircraft  

  

  

       

Arizona airports provide the department of transportation a list of all the airplanes kept there, especially if you rent a hangar or tie down.  The state will send you a notice saying that you must register and pay tax on the airplane, or provide proof that tax was paid.  You also have a sticker you have to buy and is an annual fee of .005 of the 'assessed' value of the aircraft.  

 

 Paul Besing

 RV-4 N73DD

 Arizona  

    

     

---

webmaster(at)flion.com
Guest

Posted: Sun Aug 10, 2008 7:42 pm Post subject: State use and sales tax on experimental aircraft

Paul, that publication is also about worthless.  Note that the registration form refers to instructions “in the registration guidelines”.  When I emailed the Aviation division about the form, they asked me for my N number and then replied that my aircraft is an Experimental (as opposed to Homebuilt and no explanation as to what the difference is.  They also told me to hold the form until I have the Airworthiness certificate; the purchase date is the Bill of Sale date and the date the aircraft enters the state is the date on the Airworthiness.  So, I have yet to receive a bill either but I have it on good authority (a longtime resident A&P and also a guy who just registered his Lancair Propject) that non-certificated aircraft don’t get assessed by that formula; the Lancair guy just paid $25 for his last year.  Maybe they assume experimental are always under repair…   

   

Now, the tax issue is another kettle of fish entirely.  I have already been practicing my cringe for when that shoe drops.  

   

Patrick Kelley – RV-6A -  Close to first engine start  

       

From: owner-rv-list-server(at)matronics.com [mailto:owner-rv-list-server(at)matronics.com] On Behalf Of Paul Besing

 Sent: Saturday, August 09, 2008 10:26 PM

 To: rv-list(at)matronics.com

 Subject: Re: State use and sales tax on experimental aircraft  

  

  

       

 From the Arizona registration publication:

 "The Aeronautics Division annually determines the value of aircraft for tax purposes using industry sources and guides.  The value assessed is based on the average low wholesale bluebook value for the make, model, and year of the aircraft.  No consideration is given to condition, equipment, or purchase price."

 

 The other post about $25 is ONLY for storage or under repair.  

 

 Keep in mind, this is an ANNUAL fee.  So yes, an $80k airplane costs $400/year to register.  Once you register, then the tax man will also come talk to you to see if you paid sales tax of whatever percent....I have yet to have the bill, but I am about to register so we will see.  I imagine it's 5-7% sales tax too..

 

 Paul Besing

 RV-4 N73DD

 Arizona  

    

     

---

pbesing(at)yahoo.com
Guest

Posted: Mon Aug 11, 2008 5:05 am Post subject: State use and sales tax on experimental aircraft

Yes, I remember the $25 from my RV-6A....just since I have spoken on the phone and read the publication, it appears that there is nothing in writing that says $25 for experimentals....I've managed to not register the airplane for 2 years, but it seems they are getting quite unhappy about it...we shall see what the bill is!  



Paul Besing

RV-4 N73DD

Arizona

---

Kellym

Joined: 10 Jan 2006
Posts: 1705
Location: Sun Lakes AZ

Posted: Mon Aug 11, 2008 5:09 am Post subject: State use and sales tax on experimental aircraft

You do want to register as soon as it is a flying aircraft. Otherwise 

the penalties will add up much faster than the registration fee.

Paul Besing wrote:

 	  Quote: 	
		   Yes, I remember the $25 from my RV-6A....just since I have spoken on 

 the phone and read the publication, it appears that there is nothing 

 in writing that says $25 for experimentals....I've managed to not 

 register the airplane for 2 years, but it seems they are getting quite 

 unhappy about it...we shall see what the bill is! 



 Paul Besing

 RV-4 N73DD

 Arizona

_________________
Kelly McMullen
A&P/IA, EAA Tech Counselor # 5286
KCHD

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