State Taxes and Fees

[Hank]

Since Squirrel's thread on the 'General' page about this subject was hijacked to rant about the dis/advantages of big vs. small government, I thought I would resurrect the original intent of the thread. Some states charge annual tax to own motor vehicles; some include aircraft in this tax category, some don't; some states charge annual registration or other fees.

As many Americans are quite mobile [even those without aircraft], and several members have recently mentioned thoughts of future relocation, I thought a quick compilation of current aircraft-related taxes and fees by state would be of interest. Sure, it can all change with the next election, so please report for your state the current tax/fee structure. Because sales taxes vary tremendously, can be impacted by corporate involvement, and are sometimes assessed on out-of-state transactions by out-of-state owners who make a short visit, let's ignore those for now.

I'll start. Again, no sales taxes . . .

OHIO:  no annual ownership tax. $15 per seat annual registration fee for "small aircraft" which I think means less than 30 passenger seats. I have three "passenger" seats so I pay for four seat registration ($60 per year).

[fantom]

Quote: Hank

Since Squirrel's thread on the 'General' page about this subject was hijacked.....

More like evolved.

...and going downhill, just like user taxes.

[scottfromiowa]

Iowa:  No annual ownership tax.  $30 annual registration fee.

[sleepingsquirrel]

I called and the county commisioners office gave me evaluations of the two aircraft and assessed the tax at $190 for the Mooney and $100 dollars for the C150.

All the other stuff I mentioned applies and the aircraft is to be assessed in the county it generally lands and takes off from per state law. It seems that some counties pursue this and some don't. 

Alabama

[thinwing]

State...california(taxifornia)state sales tax of 9 to almost 10% applies to all aircraft regardless of where purchased and brought into state within a year(than its called a usetax)there is an exemption based on aircraft used for business across statelines (called a interstate commerce rule).These exemptions are getting very difficult to get due to documentation requirements.County Taxes vary,but average 1% of assessed value or 500 on a 50K mooney.kpc

[John Pleisse]

Maryland...straight 6% sales tax and four cents per pound ramp weight county tax, both one time. And as I said, a Delaware Corporation in many cases is the best option.

[thinwing]

Oh and if you own an older mooney (I think its over 25 years old)you can get an exemption from property taxes if you put your a/c on display (airport open houses,mooney ambassador etc)the required times per year...kpc

[smccray]

Texas:

• 
  
• No sales tax if you can qualify as an occational sale (talk to a professional), otherwise sales or use tax is assessed at up to 8.25% (6.25 + local assessment)
  
• Property taxes are assessed on business personal property including airplanes on the portion used in TX; there isn't any property taxes if the airplane isn't used as part of a business
  

[Hank]

Quote: fantom

[flight2000]

Quote: sleepingsquirrel

I called and the county commisioners office gave me evaluations of the two aircraft and assessed the tax at $190 for the Mooney and $100 dollars for the C150.

All the other stuff I mentioned applies and the aircraft is to be assessed in the county it generally lands and takes off from per state law. It seems that some counties pursue this and some don't. 

Alabama

[danb35]

Quote: N4352H

And as I said, a Delaware Corporation in many cases is the best option.

[aerobat95]

Here in Oklahoma it is 3.25% of purchase price but I will believe they will take the Fair Market Value if you were to bring it into the state.  They call it an excise tax. 

 

In Kansas if the aircraft was a private sale and is over 25 or 30 years (I cant remember exactly) then there is no tax due....very very GA friendly

[aerobat95]

Here in Oklahoma it is 3.25% of purchase price but I will believe they will take the Fair Market Value if you were to bring it into the state.  They call it an excise tax. 

 

In Kansas if the aircraft was a private sale and is over 25 or 30 years (I cant remember exactly) then there is no tax due....very very GA friendly

[aerobat95]

Oh and if the a/c is 30+ years here in Oklahoma the registration is $10.00 per year....otherwise it is based on Gross Weight.  A typical single engine will be in the neighborhood of $55-$75 per year.  Not terrible. 

[sleepingsquirrel]

Quote: flight2000

What did they base their evaluation on?  Did you provide them the number or did they use bluebook (or something else).  Virginia was very selective in their way of finding the "current" value of the plane, but it's a mystery how they come up with the number.  I was looking to move mine to Richmond while I'm in Germany, but changed my mind after seeing a potential $1K plus bill in taxes coming. No way....

Brian

[smccray]

Quote: danb35

What tax benefits do you see in a Delaware corp?

[KSMooniac]

KS has sales tax if purchased from/through a business but not from an individual as an occasional sale.  No property tax for aircraft over 30 years old and used for personal use.  I'm not sure what the property tax rate is since my plane turned 30 the year I bought it, fortunately, and I never had to pay any tax (or registration fee).

[mjc]

Quote: thinwing

Oh and if you own an older mooney (I think its over 25 years old)you can get an exemption from property taxes if you put your a/c on display (airport open houses,mooney ambassador etc)the required times per year...kpc

[danb35]

Quote: smccray

When I looked into using a DE corp I found that it didn't solve the tax issue; it simply makes it a little more difficult to find me.