State Registration

[BillBarton]

So I bought, and brought back to service, a vintage Mooney. Its my 2nd one and I'm very proud of this kind of work. The more old Mooneys we can pull from hangers and return to flight the better the world is for it. I registered it with the FAA, shocked that the federal registration was only 5 dollars, but that seemed about right since all it can possibly be is a couple key strokes inserting my name in place of the previous owners name....done.

Now I stand at the mail box with a form in my hand from the state. They would like to have $60 to also register the aircraft in my state which is apparently not part of the country since I already satisfied that requirement. They also have in place (4561.18) an additional $500 fine if I don't.

Hmmm....2 questions immediately come to mind: What could I possibly be doing to this state, by owning an airplane, that would cost 60 dollars to cover their expenses? And what, pray tell, are they providing to me since the same investment would get me 300 miles away in my little airplane if I spent it on something real....like fuel!

Honestly does anyone know what the state needs with separate registration fees when there is already a national registry that provides nearly everything a person might need to assume your identity?

[Hank]

Everyone has their hand out for money. Ohio has an active Dept of Aviation thst helps local airports (there's one in every county, too). Many people here would be jealous of the $15 per seat that Ohio charges! Be glad that it's not an order of magnitude higher . . . .

[TTaylor]

2 hours ago, BillBarton said:

So I bought, and brought back to service, a vintage Mooney. Its my 2nd one and I'm very proud of this kind of work. The more old Mooneys we can pull from hangers and return to flight the better the world is for it. I registered it with the FAA, shocked that the federal registration was only 5 dollars, but that seemed about right since all it can possibly be is a couple key strokes inserting my name in place of the previous owners name....done.

Now I stand at the mail box with a form in my hand from the state. They would like to have $60 to also register the aircraft in my state which is apparently not part of the country since I already satisfied that requirement. They also have in place (4561.18) an additional $500 fine if I don't.

Hmmm....2 questions immediately come to mind: What could I possibly be doing to this state, by owning an airplane, that would cost 60 dollars to cover their expenses? And what, pray tell, are they providing to me since the same investment would get me 300 miles away in my little airplane if I spent it on something real....like fuel!

Honestly does anyone know what the state needs with separate registration fees when there is already a national registry that provides nearly everything a person might need to assume your identity?

Usually it is not a registration fee, but a user fee and personal property tax.  

[mooniac15u]

You have to register every other kind of vehicle in Ohio including boats, ATVs, cars, motorcycles, etc. Paying the Ohio registration fee is probably the cheapest aviation related expense of the year for me. 

[RobertGary1]

In California it’s 9% of the value when you buy it and 1% of the value annually. 

-Robert

[AZM20C]

Almost sounds like the state thinks they own the air you fly in. 

[BDPetersen]

Usually Ohio would be after you to prove you don’t owe sales tax on your new plane. “Casual sales” between individuals not involving broker are exempt. Somehow with my current plane I didn’t get that letter. They just started charging the $60.

[jaylw314]

5 hours ago, BillBarton said:

Now I stand at the mail box with a form in my hand from the state. They would like to have $60 to also register the aircraft in my state which is apparently not part of the country since I already satisfied that requirement. They also have in place (4561.18) an additional $500 fine if I don't.

Hmmm....2 questions immediately come to mind: What could I possibly be doing to this state, by owning an airplane, that would cost 60 dollars to cover their expenses? And what, pray tell, are they providing to me since the same investment would get me 300 miles away in my little airplane if I spent it on something real....like fuel!

Honestly does anyone know what the state needs with separate registration fees when there is already a national registry that provides nearly everything a person might need to assume your identity?

In Oregon, they cite costs for state-run public use airports as the main use for aircraft registration fees of $65 per year.  In addition, they used to require a pilot registration fee to cover SAR costs, but they are now rolling that up into the aircraft registration fees

I don't know about Ohio, but in Oregon we have some fantastic state public use airports, and there are several that become fire-season bases for firefighting.  I'm okay with that

[1964-M20E]

Louisiana does not have any state registration for aircraft.

However, if the money goes to keeping up local airports that is great.   It is not so great when the money gets lost in the general budget.

It is nice to have a good airport near where you want to go.  Except when they lease out the FBO space to Signature or one like them that will charge you $8 a gallon for gas and $30 to $50 a night because they are the only FBO on the filed.  Granted they need to make their money in order to be there for your convenience but at some point it is price gouging.

 

 

[Igor_U]

Same in Washington state.

$65.00 payable on January 1st. Funds go to cover the costs for state-run, public use airports. There are quite a few, mainly in Cascades and east WA.

[DanM20C]

$100 per year in Minnesota. 

I'm OK with that but it's the sales tax that kills me.  7.375% were I'm at and more in other cities.

 

11 hours ago, RobertGary1 said:

In California it’s 9% of the value when you buy it and 1% of the value annually. 

-Robert

Robert, How is the value determined?

Cheers,

Dan

[RobertGary1]

15 minutes ago, DanM20C said:

$100 per year in Minnesota. 

I'm OK with that but it's the sales tax that kills me.  7.375% were I'm at and more in other cities.

 

Robert, How is the value determined?

Cheers,

Dan

For the initial 9% they send you a questionnaire asking what you paid (under penalty of purgery of course). If its an instate purchase its sales tax. If its out of state its use tax. Either way its the exact same rate.

For the annual 1% you get a form each year asking about airframe and engine time, avionics etc and the county makes a guess.

Airport managers are required to report aircraft on their field based there and any one transient on Jan 1st. If you are on vacation on New Years you'll get a tax bill from the visiting county and you just check the box that you already paid in another county.

-Robert

[DanM20C]

1 minute ago, RobertGary1 said:

For the initial 9% they send you a questionnaire asking what you paid (under penalty of purgery of course). If its an instate purchase its sales tax. If its out of state its use tax. Either way its the exact same rate.

For the annual 1% you get a form each year asking about airframe and engine time, avionics etc and the county makes a guess.

Airport managers are required to report aircraft on their field based there and any one transient on Jan 1st. If you are on vacation on New Years you'll get a tax bill from the visiting county and you just check the box that you already paid in another county.

-Robert

Wow.  I guess I"m glad I live in Minnesota.. Never thought I would say that....

Robert, lets keep this between you and I. I don't want MN to get any new revenue ideas.

Cheers,

Dan

[kortopates]

$60 is a great bargain! I pay over $1K annually in county property taxes. Countys assess it's value; probably relying on reported sale information.


Sent from my iPhone using Tapatalk

[MyNameIsNobody]

$35/year for registration in Iowa.  There is an state aviation department in Ames.

[jaylw314]

14 minutes ago, kortopates said:

$60 is a great bargain! I pay over $1K annually in county property taxes. Countys assess it's value; probably relying on reported sale information.


Sent from my iPhone using Tapatalk

yuck.  Oregon has no sales/use tax, and excludes aircraft and most vehicles from property taxes.  Every little bit helps when SALT deductions are capped, thanks to the brilliant new tax laws.

[Yooper Rocketman]

Michigan charges a penny a pound based on the gross weight of the airplane.  $32 for the Rocket, $42 for the Lancair.  The money is used to run the State aviation department and for airport improvements.  Most airport improvement projects are 90% Federal Grant, 5% State Grant and 5% local match.  Can't say I have a problem with it.  I've had twice in the last 10 years I missed the cut-off date, which adds a 50% penalty.  A call to the state office both times got the penalty dropped, so pretty good people in the office.

Tom

[EricJ]

My AZ registration for 2018 was $25.

[Little Dipper]

12 hours ago, RobertGary1 said:

In California it’s 9% of the value when you buy it and 1% of the value annually. 

-Robert

It is going to backfire in California.   Your post goes a long way in explaining why many wealthy people who pay the taxes are moving out of California in record numbers.   Back in Pennsylvania I often feel that so many people have their hands in my pockets that I can't even feel my own balls.   This I one tax Pennsylvania hasn't thought of yet.

Norm

N995K

[neilpilot]

Use this link for a reference on the various state sales/use tax, registration fees and personal property taxes.  https://www.aopa.org/go-fly/aircraft-and-ownership/buying-an-aircraft/the-pilots-guide-to-taxes

I live in TN, but hangar in AR.  Neither state has an annual aircraft registration.  When I moved my last Mooney to TN in 1994, they attempted to charge me a use tax until I pointed out that I rent my hangar in AR.  The same thing happened when we bought our current M20C in 2012.  So far, no payments to either state.

 

Edit: except, of course, tax on fuel 

[Browncbr1]

1 hour ago, RobertGary1 said:

For the initial 9% they send you a questionnaire asking what you paid (under penalty of purgery of course). If its an instate purchase its sales tax. If its out of state its use tax. Either way its the exact same rate.

For the annual 1% you get a form each year asking about airframe and engine time, avionics etc and the county makes a guess.

Airport managers are required to report aircraft on their field based there and any one transient on Jan 1st. If you are on vacation on New Years you'll get a tax bill from the visiting county and you just check the box that you already paid in another county.

-Robert

So, you pay sales tax an engine overhaul, then they tax you again for the value of the engine every year.  Wow, I knew there were many forms of double taxation, but that’s a new one to me.  

Here in TN, it is a one time 7%+ 1.5 - 3.0% sales tax when you acquire and from then about 4.5% of fuel purchase is tax.   I figure I’ve paid about $180 in fuel tax over a 100 hours of operation.

Edited January 17, 2018 by Browncbr1

[johncuyle]

Also in WA. $65 a year, cheaper than car tabs, the primary leverage they have is most airports want a state registration number to lease you a hangar. As another poster mentioned, it supports a lot of really great state airports. The one that gets me is the use tax. Charged at the rate of sales tax, required upon first use within the state. Not sure why WA deserves 7.5% of the value of a used aircraft. Someone already got their sales tax in 1980.


Sent from my iPhone using Tapatalk

[mooniac15u]

1 hour ago, Little Dipper said:

It is going to backfire in California.   Your post goes a long way in explaining why many wealthy people who pay the taxes are moving out of California in record numbers.   Back in Pennsylvania I often feel that so many people have their hands in my pockets that I can't even feel my own balls.   This I one tax Pennsylvania hasn't thought of yet.

Norm

N995K

Do you have stats to back that claim about California?

[Ron McBride]

I live in CA, for now. Taxes are a major subject with many of us.  You add the taxes up, cost of living, government regulations and personal safety/crime and many want to leave.  the weather is fantastic though.  Taxes are 9% and some counties more.

Taxes, Fees and Fines, the CA way.

I am selling out and moving, hope to be gone soon.  Moving closer to the kids, grandkids.

Ron

[bonal]

Just got our valuation form from the county (in CA) went into the county office on a couple of ocasions to advise them of our ownership they were never sent. i guess it takes a few years for our county to figure it out. Oh well gotta pay them taxes.  We can show our plane as an historic aircraft and it waves the taxes I think it requires 12 or 15 times a year by the time you fly it to show it you spend more in fuel than what the taxes are. But you get to fly!