Beat the sales tax

[RobertGary1]

5 hours ago, spistora said:

Good to know for Kansas. Adds a few more percent to my purchase budget.

Idk. I spent 10 days at the Cessna factory in Kansas as part of being a factory authorized instructor. There isn’t much out there. Only 1/2 dozen restaurants and they almost all serve the same thing. 

The waitress at the Italian restaurant exclamined they had both red and white wine  

-Robert 

[Hank]

3 hours ago, RobertGary1 said:

The waitress at the Italian restaurant exclamined they had both red and white wine  

I bet they even play both kinds of music--country AND western!

[nels]

16 hours ago, jgarrison said:

I always start here (shout out to these guys - who make their living helping people with sales tax issues):

https://www.advocatetax.com/USMap.html

Once I determine what the general rules are for the state, then I dig in and find out what the specific rules are. There are some states that are hard core (CA, FL, TN are the worst in my experience). Believe it or not, NY just stopped collecting sales tax on aircraft - go figure.

On the chart you suggest looking at.... what is a “ flyaway state”. 

[smccray]

3 hours ago, nels said:

On the chart you suggest looking at.... what is a “ flyaway state”. 

In general- states with fly away provisions permit a transaction to occur within the state boarders free of sales/use taxes as long as the aircraft is removed from the state in short order.  Timelines and required paperwork are different for every state.  Different requirements must be met depending on how a transaction is structured.  It's not as simple as pick a state on that map and buy an airplane.

This is not tax advise.  Talk to a professional or risk a big bill.

[nels]

4 hours ago, smccray said:

In general- states with fly away provisions permit a transaction to occur within the state boarders free of sales/use taxes as long as the aircraft is removed from the state in short order.  Timelines and required paperwork are different for every state.  Different requirements must be met depending on how a transaction is structured.  It's not as simple as pick a state on that map and buy an airplane.

This is not tax advise.  Talk to a professional or risk a big bill.

I bought my plane several years ago and avoided sales tax here in Ohio as it was a casual sale. I’ve been looking at property in Arizona and New Mexico for use as a winter home for five or six months per year. I would be unhappy if suddenly I got hit from that state with a tax bill for a plane I bought five years ago.

 

 

 for winter a winter home for five or six months a year. 

[RobertGary1]

18 minutes ago, nels said:

I bought my plane several years ago and avoided sales tax here in Ohio as it was a casual sale. I’ve been looking at property in Arizona and New Mexico for use as a winter home for five or six months per year. I would be unhappy if suddenly I got hit from that state with a tax bill for a plane I bought five years ago.

  

 

 for winter a winter home for five or six months a year. 

Hopefully not on the sale but you'd at least expect to get hit will an annual property tax bill if those states have property tax on aircraft.

-Robert

[smccray]

2 hours ago, nels said:

I bought my plane several years ago and avoided sales tax here in Ohio as it was a casual sale. I’ve been looking at property in Arizona and New Mexico for use as a winter home for five or six months per year. I would be unhappy if suddenly I got hit from that state with a tax bill for a plane I bought five years ago.

 

 

 for winter a winter home for five or six months a year. 

The details matter- it’s worth a call to the guys who specialize in this area.

2 hours ago, RobertGary1 said:

Hopefully not on the sale but you'd at least expect to get hit will an annual property tax bill if those states have property tax on aircraft.

-Robert

I have heard of situations where an aircraft  are moved years after the original purchase and the new location of the aircraft triggered a use tax bill based on the original purchase price.