FAA snitch registration software strikes again.

[DAVIDWH]

 This week, opened official looking letter from local county assessor's office.  Inside was, please fill out this form so that we may assess your PERSONAL PROPERTY TAXES due on your aircraft.

 

Personal property??  Did not receive this form after purchase of wheel barrow from Home depot...yet.   Never received this form on any of the previous five aircraft I have owned.

 

Called assessor's office and left message. Call returned one day later. I explained ac not used for any business use ie.  rental, lease or charter whatsoever.

 

Reply,"please fill out form so that we may make a correct assessment on your personal property taxes due".

 

Another cup of coffee and rapidly realizing,  the intrusive bullying will never end.

 

Mail just delivered for today, suspect personal wheel barrow in big trouble.

 

 

[N201MKTurbo]

Yes, I managed to avoid taxes until I filled out the mandatory re-registration form. One week later I got a letter from the Arizona department of revenue.

 

Airplane owners all have a big target on their backs. They don't realize that if we had any extra money we would have bought a bigger plane....

[John Pleisse]

If you have a bank note, it was likely the bank who tattle tailed. Two words......Delaware.......Corporation.

[chrisk]

The whole tax thing is very sticky.  Fortunately, where I live (Texas), there is no personal property tax on Aircraft.   Sales tax is another matter and can be an 8.25% bite.  There is an occasional sales exemption, which works when buying from an individual (part of my aversion to aircraft dealers).  I believe corporate ownership can be used to avoid this also, as there is no sales tax on buying or selling a corporation. 

[rbridges]

We pay property taxes for aircraft in GA.  Fortunately, my C model is only a couple hundred bucks a year in taxes.  Given the hull value of newer models, I imagine it can get costly.

[Mooneymite]

This subject has been beaten to death on multiple aviation forums. A DE corporation may be a viable option in some states, but in others, one walks a precarious line with the law.

While just flying under the radar may work, there may be other hazards.

For example, in GA, if you keep your airplane in the state (legal definition?), one is liable for personal property taxes regardless of where it is registered. In one case, a disgruntled pilot went to the tax office and ratted out all the owners who had planes at his airport that were avoiding taxation. In other cases, the airports themselves divulge the whereabouts of DE registered aircraft that are tied down/hangared. In both cases, taxes can be levied, but also back taxes and penalties may be levied. Making the county prove the physical location of an aircraft may ameliorate its fervor, but maybe not.

Be smart, but be careful.

[BobAustin]

You need to give more info in your profile so we can make suggestions.

 

However in Texas, Travis County (austin area) the rule is about 3% tax yearly if the plane is registered to an individual(and can be sued personally). Not so if registered to a corporation.

[Joe Zuffoletto]

Some states suck more than others. California assesses personal property tax on airplanes; Colorado does not. My move to Colorado 8 years ago has saved me well into the six figures in taxes.

[jsimmons619]

FYI - Connecticut dropped the property tax on aircraft years ago and instituted an annual registration fee.  My Mooney costs $90 per year.

I'm considering a relocation to South Carolina.  Does anyone have feedback regarding the personal property tax situation for aircraft in South Carolina?

[Bob_Belville]

NC (the state) has no "Property/vehicle" tax on aircraft but counties and cities tax planes @ the same mill rate as real property. There is limit on sales tax, $100, I think. Since our airport is jointly owned and operated by the adjacent counties and the two principle cities there is no hiding from the tax man. My old E costs me about $300 per year. 

[flyboy0681]

 California assesses personal property tax on airplanes.

 

California also bases auto registration fees on the value of the car. Before moving to Florida from Los Angeles, my registration was in the neighborhood of $600 a year. When I moved to FLA I registered the same car for $40.

 

Florida appears to be a general aviation friendly state. No property tax on the aircraft itself or sales tax on parts and maintenance.

[bnicolette]

Happy to be living in PA.  No more sales tax on aircraft and never had personal property tax.  Woohoo.

 

It sucks when they inevitably catch up to you!!!  Been there done that.

[pinerunner]

Maine was really bad about this a few years ago. They were going after big tax bills on out of state planes that tied down for a small percentage of the year; in particular they hit John Travolta with some monster bills. It was in the news. When I got my M20E two years they were closing in down and now I just hae to pay a modest fee to the town with the airport.

[AndyFromCB]

It never hurts to file your flight plan with N767FU in lieu of N767RD when flying to Illinois either.

[ALP]

I didn't know they finally got rid of the tax in PA. I had to pay the tax a couple of years ago even though the tax abatement was pending.

 

I paid the tax when I bought the plane and they still chased me a couple of months later until I proved it was paid.

[kris_adams]

I pay about $1,000/year in a suburb of Atlanta.  I bought from an individual so (thankfully) no sales tax in Georgia.

[M016576]

California also bases auto registration fees on the value of the car. Before moving to Florida from Los Angeles, my registration was in the neighborhood of $600 a year. When I moved to FLA I registered the same car for $40.

Florida appears to be a general aviation friendly state. No property tax on the aircraft itself or sales tax on parts and maintenance.

$600 bucks a year for auto registration?!?!?! What do you drive, a Mercedes crafted out of solid gold?!?!

[Sable1]

$600 bucks a year for auto registration?!?!?! What do you drive, a Mercedes crafted out of solid gold?!?!

 

Living here in MN, I just paid the registration for my 2012 Tahoe in November and it was over $500 - And that's not even an LTZ, just a basic LT.

I hate to think what the bill will be for me when I finally buy a plane - but I know it will include the 7.25% excise tax, plus a registration, plus who knows what else they'll tack on.

Land of 10,000 taxes....

Between this and the damn weather, I think it's time to move!

[Jerry 5TJ]

In CA you can get an exemption from personal property tax on your airplane if it is (1) over 35 years old and (2) is "exhibited" 12 or more days per year. For example, you can display at an air show.

Of course with declining values of our vintage Mooney planes the tax is only a few hundred dollars per year anyway. (1% of hull value is the tax rate)

[N601RX]

Some careful research on your state laws and exemptions will often save you some some sales tax money if it is done BEFORE you purchase the plane.

[Marauder]

If you have a bank note, it was likely the bank who tattle tailed. Two words......Delaware.......Corporation.

 

Or better yet, live here... Would love more chimps to hang out with.

[flyboy0681]

$600 bucks a year for auto registration?!?!?! What do you drive, a Mercedes crafted out of solid gold?!?!

 

At the time it was a Jeep Grand Cherokee.

 

I imagine it would be double that now.

[aviatoreb]

Yes, I managed to avoid taxes until I filled out the mandatory re-registration form. One week later I got a letter from the Arizona department of revenue.

 

Airplane owners all have a big target on their backs. They don't realize that if we had any extra money we would have bought a bigger plane....

 

They should realize that we have an airplane, that eats all of our spare money and therefore we have no money for them.

[Guest]

In Ontario, no licensing fees for aircraft. 13% sales tax split between the Feds 5% and the province 8% at the time of sale/ purchase. Same sales tax applies to maintenance, insurance bills, fuel etc. If the plane is used in business the tax is recovered.

There is an annual user fee paid to Nav Canada for airway fees, very small less than $100.

Cars licensing fee is less than $100 for a private vehicle.

Clarence

[Bennett]

We get hit pretty hard here in California. First there is a sales tax, that depending on the county in which the aircraft is purchased or stored (hangar, tie down, etc.) is now very near 10% of the purchase price. There are a few ways to legally avoid this tax, but no where as easy as it was in the past. There are several reputable firms whose principals are attorneys and accountants, that can, for a fee, guide you though the process. A fair amount of record keeping, and some delivery and first flight rules, but it can be done. Probably not worth it for aircraft under $100,000, but that is a matter of individual choice. The important element is not to listen to well intended friends who say they have avoided the tax in the past, but rather seek competent professional help. California has a Use Tax as well as a Sales Tax, so be careful. Secondly, there is a 1% Personal Property tax each year based on the hull value at the time of assessment. On top of that a few counties add a tax with a variety of names, but is still effectively a tax.

But here in lotus land we get many fine airports, and relatively benign weather (And some of the most convoluted and strange airspace as anywhere in the country). Lots of aircraft, lots of pilots, and many interesting flying destinations. Want culture shock - check out the real estate prices in San Francisco, and the pennisula. Unreal, but then wages are high, and plenty of jobs in high tech, electronics, and bio-tech.