Sales and Use Tax Nonsense.....

[RobertGary1]

You’re certainly in “consult an attorney” territory though. In some states not only does the out of state not affect the tax liability ability it incurs its own. 

[A64Pilot]

11 minutes ago, RobertGary1 said:

You’re certainly in “consult an attorney” territory though. In some states not only does the out of state not affect the tax liability ability it incurs its own. 

Probably good advice

[bmcconnaha]

1 hour ago, A64Pilot said:

Why would you lease it? I know several people who own aircraft and very expensive motor homes ,or actually they own a Montana LLC that owns the aircraft or motor home and do not lease it. But gut says that if you do, that the lease payment ought to be realistic or if not it sounds too much like IRS bait.

Guy I bought my Mooney from had it in an LLC, he bought the LLC from someone else, and offered to sell me the LLC for the sales price of the airplane of course but it was a Ga LLC, and I didn’t want a Ga LLC.

I don’t know maybe someday the Montana LLC will be shut down, but until then it seems to be the way to go to me.

‘Many yeas ago my Father’s practice owned the C-210, and he had to rent the aircraft and pay  x number of dollars per hour for personal use, the dollar rate was high because he didn’t want anyone renting it, but that was 50 years ago.

I see owning a Montana LLC that has assets as no different than owning a Yacht that’s flagged in another Country. The big ones will have helicopters with N numbers, but I’m certain that they are registered either with or as a part of the boat, meaning no US tax is paid.

https://www.cayman-yacht-registration.com

https://www.newsweek.com/betsy-devos-cayman-islands-taxes-yacht-flag-foreign-donald-trump-america-1061960

because Idaho has both use tax or sales tax of 6%.  if it is here for 90 days you pay.  I had property in Montana that my 182 was registered (I'm from Montana) and they still came after me for 6%

[Guest]

6 hours ago, EricJ said:

Ironically, the reason many of these local governments do this is to try to mitigate budget shortages due to "tax reductions" passed to appease the masses.   Stuff needs to get paid for, and if the budgets get slashed in order to reduce taxes or prevent raising them, this is not an unexpected result.

It's similar to people complaining about how long it takes the FAA (or most government agencies) to do things, because they run on a thin staff, because if they don't people complain that they're getting too much money and can operate on less.

I learned to fly in a place where you had to pay a landing fee every time you landed some place.   Part of the ritual of flying somewhere was walking to the ops building and paying the fee.   

 

Most people don’t mind paying their fair share of taxes for things for all members of society to use or benefit from.  The challenge is striking a balance of who should pay and at what rate and getting good value for the dollars collected with as little government waste as possible.

Clarence

[Ragsf15e]

7 minutes ago, M20Doc said:

Most people don’t mind paying their fair share of taxes for things for all members of society to use or benefit from.  The challenge is striking a balance of who should pay and at what rate and getting good value for the dollars collected with as little government waste as possible.

Clarence

Well said.  Do you think you could move down here and run for a Senate seat?  I’d vote for you!

[Mooney217RN]

You have to ask yourself why?  Why do states insist on taxing aircraft owners aggressively?  Answer - because it’s politically popular to stick it to aircraft owners.

Besides blocking your tail # using the LADD system through the FAA, Iif you’re aircraft is involved in interstate commerce, generally, you’re exempt from sales & use tax.  California has an affinity for harassing aircraft owners, often wrongly chasing after them.  

The irony of this all is that while government always believes in raising taxes, they never address the expense side of their ledger.  Government employees are grossly overpaid for the work they claim to do, and their benefits are absurdly generous by any standard.

[A64Pilot]

1 hour ago, bmcconnaha said:

because Idaho has both use tax or sales tax of 6%.  if it is here for 90 days you pay.  I had property in Montana that my 182 was registered (I'm from Montana) and they still came after me for 6%

It’s my understanding that Fl if you have had the asset for 6 months prior to bringing it into Fl, Fl doesn’t tax you, but for whatever reason you have to have had it for six months. 

Does Idaho do that? How long does it have to be in Idaho before use tax kicks in?

 

[larryb]

8 hours ago, PT20J said:

I used to live in California where taxes are pretty high. Every politician running for Governor always said that they could cut costs by reducing waste and fraud and they could always point to some egregious example of waste to make their point. Trouble is, they could never find enough actual waste or fraud to amount to much. The truth is that most government spending goes either directly or indirectly to payroll.  

Just one datapoint, but... My Brother-in-law runs a cabinet shop serving commercial customers in California. When a government contract comes in it is always for top $$$. They include a "living wage" that is twice what his guys normally make. They get the best and most expensive materials. He can propose a material half the cost that looks just as good and lasts just as long and they don't want it. They want to pay for the "best." It's all gold-plated construction. They are not spending their own money so money is no object. I'm not kidding, we have had numerous conversations about this. The governments don't have a revenue problem, they have a spending problem. He is very happy to take their (our) money though. 

[Mufflerbearing]

16 hours ago, A64Pilot said:

It’s my understanding that Fl if you have had the asset for 6 months prior to bringing it into Fl, Fl doesn’t tax you, but for whatever reason you have to have had it for six months. 

Does Idaho do that? How long does it have to be in Idaho before use tax kicks in?

 

So, pertaining to cars in Idaho, If you bring a car into the state and have owned it for more than a certain amount of time, you won't owe any taxes on the vehicle.  If it is less than that amount of time, a person gets to pay the taxes from the state in which it was originally purchased and then once again in Idaho.  I believe it is the same in Washington state as well.

Does this still apply to airplanes?  I have no idea.

[Shadrach]

https://www.avweb.com/aviation-news/canada-moves-forward-on-aircraft-luxury-tax/

As of Friday...

[thinwing]

On 4/21/2021 at 10:12 AM, Hank said:

Seems like Virginia wants their share in addition to what he pays at home. Being in Virginia for 90 days throughout the year is the trigger . . . So be careful how often you visit, how long you stay and overnight. 

I just thought of something.Assume the VA tax assessor is correct and they can prove his plane was in VA for 90 days or over.I assume this occurred last year or even later during the height of COVID travel restrictions (airline,bus etc)preventing him from traveling to mpve the aircraft due to state mandated restrictions on travel.