STATE TAX aircraft

[sleepingsquirrel]

 

It seems after all my research I failed to determine that my aircraft were taxable in the state /county of my residence.
Because I was so incompetent in making this determination , the county of my residence sent me a letter to remind me that:
A. I own two aircraft
B. They, the county of my residence, will collect this ad valorem property
tax for the state of my residence.
C. I do not have to pay them the personal property tax if:
1. I provide proof I no longer own these aircraft or they are leased out
2. The aircraft are not generally based in the county trying to assess the tax for the state
3. I provide proof that the aircraft are assessed as personal business
property

The aircraft are based in another county, a county I discovered that is not interested in collecting this property tax for the state.
My concern is that I don't need a huge tax bill several years from now . I think this is another local tax grab , like they were adding city tax to my auto tags when in fact I'm not in their city limits. I have to tell them this every time I renew my tags.

The State is xxxxxxx,there is a place on the return form to name location or base of aircraft beginning date at this location. It goes on to say that if the form is not returned the owner will receive an "escape assessment" and will be subject to a penalty. Sale at public auction of aircraft on which taxes have not been paid IAW section blah,blah,blah.

Any advice from you guys in xxxxxxxx ,or others with similar experiences?

__________________


I simply have to tell the truth and return the form with the true county of operation to avoid the tax.
Any advice, any moral or ethical positions, decisions or judgements welcome!

[dougmilam]

A hidden cost of ownership.  That one cost me almost 10K.

 

[sleepingsquirrel]

Yes, but you have a new airplane, mine are old and shouldn't be taxed. Bwahahaha , snork

I copied that from someone else but it made me laugh even in these taxing times!

Please tell me you don't live in my state!

[aerobat95]

I feel your pain.  I just moved from Kansas to Oklahoma and they want to charge me an excise tax on my airplane.  The thing is I am not even a resident of this wonderful state....I am just temporarily stationed here with the military.  I think it is criminal that states are able to do this.  What I want to know is does the money we pay to these states go back into the aviation community??  Does it help revitalize the airports in the state? 

[sleepingsquirrel]

I'd be checking with your legal folks, the military is usually exempt from these extortions.

[1964-M20E]

It just proves that you cannot own property (real-estate, vehicles etc) in our supposedly free country.   The communist countries do not lie to their citizens about owning property not that I would want to move.  Thankfully in LA I only had to prove the purchase was one individual to another and so far no other ugly tax notices.  We pay tie down and hanger fees to the airport and we pay fuel taxes when we fly that should be sufficient.  Finally all of this is paid with money we have already paid federal, state and sometimes local income taxes on.

[scottfromiowa]

This is just to depressing for words.  How much longer do you think it will be before we have a "fee/tax/charge" for every post we make on MooneySpace?  Regressive tax.  Got to love it.  Or not.  How long before all this "Re-Registration" results in a H-U-G-E jump in annual fee?  Here is the answer.  VOTE THEM OUT.  Reduce the size and scope of government at EVERY LEVEL.  Here that ticking?  That's the tax bomb that is coming to pay for governments mis-management and debts.  Vote 'em out.

[Barry]

Quote: aerobat95

I feel your pain.  I just moved from Kansas to Oklahoma and they want to charge me an excise tax on my airplane.  The thing is I am not even a resident of this wonderful state....I am just temporarily stationed here with the military.  I think it is criminal that states are able to do this.  What I want to know is does the money we pay to these states go back into the aviation community??  Does it help revitalize the airports in the state? 

[Skywarrior]

$9,400 sales tax + $1,200 annual Personal Property tax for my plane here in Georgia.

I wonder if Domino's is hiring...

Chuck M.

[rbridges]

Quote: Skywarrior

$9,400 sales tax + $1,200 annual Personal Property tax for my plane here in Georgia.

I wonder if Domino's is hiring...

Chuck M.

[mike28w]

  The whole situation is depressing.....  I've owned a plane for about 15 years , but it's  becoming more and more expensive  and tedious to own/fly ( regulations, etc) .....

  I still love to fly but if the market were better,  I'd be selling........   such a shame that G.A is fading away.......

   I truly believe the next generation will only have Flight simulators.................................

  Sorry to be so negative...mike

 

[FAST FLIGHT OPTIONS LLC]

Well after purchasing my plane last December I just received the dreaded tax notice as well... I offered the guy a ride in exchange for a lenient payment plan!

[flight2000]

I got the letter, but was exempt from the sales tax in Kansas as it was a casual sale between private individuals.  They tried to get me for property tax the following year, but the military clause saved me on that aspect.  There are also states that will try and hit you up if you never paid sales tax (no matter how long you've owned it) (uhmm, hello Virginia) to another state.  I will be very careful with where we end up retiring. 

What's the status with North Carolina? Favorable or unfavorable?

Brian

[DaV8or]

Quote: mike28w

  The whole situation is depressing.....  I've owned a plane for about 15 years , but it's  becoming more and more expensive  and tedious to own/fly ( regulations, etc) .....

  I still love to fly but if the market were better,  I'd be selling........   such a shame that G.A is fading away.......

   I truly believe the next generation will only have Flight simulators.................................

  Sorry to be so negative...mike

 

[MARZ]

Wow - sorry guys - Ya gotta love Texas. 

 

Occasional Sale Exemptions

Sometimes sales tax exemptions of general application prevent tax in an aircraft transaction. For example, a person who does not hold a sales tax permit and who is not in the business of selling tangible personal property can make up to two sales of tangible personal property in a rolling 12 month period tax free. This exemption does not apply if the buyer holds a sales tax permit, and it does not apply to leases. The occasional sale exemption can also exempt sales of aircraft in certain business reorganizations and bulk sale transactions.

 

The exemptions that would apply under the Texas sales tax generally apply to use tax as well.

Local Property Tax

Property taxes are assessed on all income producing personal property located within a taxing jurisdiction on January 1 of each year. A temporary absence on January 1 will not avoid the application of the property tax. Hobby aircraft that are not used for business or commercial purposes are not subject to the property tax. The combined tax rates in most jurisdictions now exceed 2%, so the property tax is a major economic consideration for commercial and business aircraft owners.

 

 

[scottfromiowa]

Dave,

I can't disagree with the majority of what you say...BUT when I hear those saying that I wonder if Reno will cease...because of the tragic crash I think, REALLY?  If you sit around airplanes flying at the edge there is the chance that really bad things might happen.  The Republicans PLAN is reduce government.  Reduce Taxes.  Allow the private sector (unburdoned by regulations and fees and taxes) to expand.  When you have 50% of people wanting MORE government and 50% wanting less you have a stalemate.  I want less government.  To people that don't have jobs I say getting unemployment for three years is ridiculous.  Time to sell some "stuff" and re-adjuct to reality.  If my job is gone then the first thing to go is my plane.  It is a luxury, but one I take on even with the current realities of the future of GA...because I love it.  I would move to a different state that is NOT so burdonsome on aircraft ownership.  I would not own an aircraft especially a 45 year old aircraft like mine if I had to pay thousands of dollars a year for the priviledge in that state.

[Parker_Woodruff]

The sad part is people who save for years and years and years for an expensive investment can't afford it because of a tax penalty.

Of, by, and for the people - right?

[jetdriven]

The idea that lowering regulation or taxes will cause corporations to "take more risk" and "create jobs" is a fallacy.  Corporations are sitting more cash than any time in history, 2 Trillion dollars, give or take. Are they "using this to create jobs"?   No, they are sitting on it, creating jobs overseas, or buyign their own stock back, perhaps the biggest waste of all.     Dont fall for it, folks.      

http://www.forbes.com/sites/robertlenzner/2011/06/21/a-trillion-in-corporate-cash-will-help-shareholders-create-no-new-jobs/

[scottfromiowa]

Yes, right.  Big bad corporations.  Big greedy faceless corporations.  They are sitting on the sidelines with their cash waiting for some sign from the government that they are going to reduce taxes and future economic impact such as healthcare.  "Don't fall for it"?  Fall for what?  We have an environment where government is looking to take from those who have and distribute it to those who don't...to make it fair.  47% in the US Don't pay Federal income tax.  Big government has got to take more from those that are successful...you know to even things out.  Don't fall for the left's class warfare.  Don't fall for the "it's us against them" (poor little guy vs. the big rich corporation and "wealthy"-defined by $ earned).  If you think/want the government to solve your problems...good luck with that.

[John Pleisse]

Just get a DE Corp like everyone else does and avoid the indignant regret. Think we are taxed heavily now? Just wait. 

[Parker_Woodruff]

Quote: jetdriven

The idea that lowering regulation or taxes will cause corporations to "take more risk" and "create jobs" is a fallacy.

[rbridges]

Quote: scottfromiowa

Yes, right.  Big bad corporations.  Big greedy faceless corporations.  They are sitting on the sidelines with their cash waiting for some sign from the government that they are going to reduce taxes and future economic impact such as healthcare.  "Don't fall for it"?  Fall for what?  We have an environment where government is looking to take from those who have and distribute it to those who don't...to make it fair.  47% in the US Don't pay Federal income tax.  Big government has got to take more from those that are successful...you know to even things out.  Don't fall for the left's class warfare.  Don't fall for the "it's us against them" (poor little guy vs. the big rich corporation and "wealthy"-defined by $ earned).  If you think/want the government to solve your problems...good luck with that.

[scottfromiowa]

Quote: rbridges

 you're wrong.  last I heard, 52% of people paid zero or received a tax credit.  Sickening.

[RJBrown]

The fallacy is that corporations pay tax at all. No corporation still in business ever paid any tax. ALL taxes supposedly paid by corporations are simply MARKED UP and passed on to the consumer. The public pays MORE in the long run for every dollar taxed to a corporation. It is just a simple way of conning the stupid masses. The more the government can hide how they get your money the more they can take. It is like the matching payment of FICA by your employer. That payment comes out of the funds available to pay you. The only people that ever pay any tax are the end consumer. What we need to do is spread the tax burden over everyone. No more 47% of the people paying no taxes, and I don't mean the rich either.

Make every tax transparent to the taxpayer and we would all scream to stop it. Every step in the chain is taxed. When the raw materials come out of the ground there is a tax. As the material is shipped there are more taxes. The company that refines the raw materials pays a tax. When the refined material is shipped to the manufacturer the government get another cut. All these taxes all along the line add up to more than you could imagine. I would not be surprised if when added all up the governments at all levels end up consuming over half the economic output of our country.

We need less government. End the nanny state.

At the state level we are getting trained. The things we want from government they underfund on purpose so we will vote ourselves a new tax. Look at how your schools are funded. Look at how the roads are funded. These are things we see and want. The state legislatures and governors TELL us they are out of money and (unfortunatly) they must raise the taxes to save the stuff we want. That way they can invent more things for us to "need" from them.

We keep voting the the mill levy increases but the school "crisis" never goes away. Fool us once shame on you, fool us 28 times shame on US.

Government is truly the growth business in our economy. Scary huh.

[Becca]

Quote: rbridges

 you're wrong.  last I heard, 52% of people paid zero or received a tax credit.  Sickening.