Sales and Use Tax Nonsense.....

[Mark89114]

My first reaction is to tell them to pound sand.....but I recognize the situation.  Just looking to see how anybody else has dealt with this situation.  I am 100% sure I am less than 90 days per calendar year.  I just take extreme objection to the government taxing my assets again and again.  Paid for airplane with taxed money, paid the sales tax on it, and now when I travel to other places I have to pay tax?  I am trying very hard not to put political statements on here......

[warren.huisman]

I’d be happy if it was only 2%. It’s 6% in Michigan. I know a few other states are even higher.


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[RLCarter]

If you can prove less than 90 days in state, fight it. Who sets the value to be taxed?

[Sabremech]

Why should you have to prove anything? If Virginia thinks you’ve been there more than 90 days, they need to provide proof. I’d be damned if I’d pay and do their job for them. 

[Mcstealth]

Haha. I am sure the generational challenged will need to look up "pound sand" to get a reference.

[thinwing]

you mentioned you already paid sales tax in another state...a copy of that billing usually prevents a second billing from another  state...

[dzeleski]

And I thought taxes in NY were insane. I would just respond via certified mail that you require proof that you were there 90 days. Let them figure it out.

Then going forward make sure you only stay 89 days. What an absolutely stupid money grab.

Your other option appears to be to register the airplane as a LLC, it seems there is an exception for that. Talk to a tax lawyer first though : https://law.lis.virginia.gov/vacode/title58.1/chapter15/section58.1-1505/

[Hank]

Just now, thinwing said:

you mentioned you already paid sales tax in another state...a copy of that billing usually prevents a second billing from another  state...

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. 

[daytonabch04]

6 minutes ago, thinwing said:

you mentioned you already paid sales tax in another state...a copy of that billing usually prevents a second billing from another  state...

If you've paid sales tax, I would think a use tax could still be applied, correct?  Sounds like this isn't a 2nd sales tax but a 'right' to operate in their state...

[Hank]

4 minutes ago, dzeleski said:

What an absolutely stupid money grab.

But all airplane owners are rich! Says so right here in the Tax And Spend Handbook . . . .

[Hank]

Just now, daytonabch04 said:

If you've paid sales tax, I would think a use tax could still be applied, correct?  Sounds like this isn't a 2nd sales tax but a 'right' to operate in their state...

Isn't that covered by Federal law for airplanes, which supercede state laws?

[PeteMc]

Just now, Hank said:

Isn't that covered by Federal law for airplanes, which supercede state laws?

States can charge any kind of "Use" fee they want if you are in their state.  No different from those states that require you to get a boat license or pay a "Use" fee if you come into their state.  

[PeteMc]

@Mark89114  Luckily they said "may" owe, so hopefully you can show you were there less than 90 days. 

Regardless if you pay or not, I'd spend some time and draft a nice short letter to the Gov. and CC whomever is the Tourism person.  Tell them how you USE TO like coming to their state, but do to their fee on top of what money you were putting into the economy, you're looking for a new destination.

Even if you do keep going back, it may get someone thinking about the fee.  Won't do any good to send it to the tax people or with the payment.  They just push the papers that others tell them to.

Good Luck!

Edited April 21, 2021 by PeteMc

[thinwing]

also i just noticed op location of his Ovation lists VA and Ark airports as his bases of operation under his member info.So reading the VA tax code...he would be liable for use tax if he exceeds there max stay

[201Mooniac]

I don't know anything about this tax but the letter says "Located or operating".  Does operating mean they want to tax me if I fly through VA airspace on more than 90 days?  That sounds insane.

[PT20J]

The letter makes two claims:

1. VA registration is required because the airplane spent an unspecified "significant number of days" located at VA airports.

2. Tax is required to be paid if the aircraft was located and/or operated in VA for a period of greater than 90 days during a calendar year.

If it were me, I would prepare records to determine the actual number of days I was operating or located in VA during 2020 and 2021. Then I would call them and request clarification of the registration requirement -- specifically for a reference to some law or regulation that defines "significant number of days."

If I determined that I did not meet the criteria of registration or tax, I would send them a letter so stating and including copies of logbook entries as proof of the time I was actually in the state. It's clear that they don't have very specific records because if they did they would state how many days they claim the airplane was in the state and they would know whether or not tax was due. Based on that, I doubt they would attempt to question the logbook entries.

Skip

[RobertGary1]

1 hour ago, warren.huisman said:

I’d be happy if it was only 2%. It’s 6% in Michigan. I know a few other states are even higher.


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California is closer to 9% 

[RobertGary1]

47 minutes ago, Hank said:

Isn't that covered by Federal law for airplanes, which supercede state laws?

Only while they are in the air. 

[Mark89114]

I am reading all of the responses as a general source of how to respond.  Checked the Dept of VA aviation site and the registration requires me to have insurance, which I do have, but it only needs to be equivalent to car insurance.  I am just tired of the gov't overreach.  

 

[RLCarter]

Doesn’t matter to me but what was your purpose for being in VA? If you own property they might get you on that

[N201MKTurbo]

I would just send them a response saying “I checked my records and Nxxxxx wasn’t in Virginia For 90 days in 2020 and therefore don’t owe any tax ”. And leave it at that. After all, that’s what they did. Make them send you an itemized list of stays.

[steingar]

I wouldn't do a damn thing unless the letter came certified.  If they try to collect I'd just say "what letter?".

[Stetson20]

5 hours ago, warren.huisman said:

I’d be happy if it was only 2%. It’s 6% in Michigan. I know a few other states are even higher.


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Sending a check to the People's Republic of Michigan this week to pay the sales tax on my newly acquired Rocket.

[bradp]

Don’t make it easy for them either 

Block your n number on FlightAware and the other sites 

dont use your tail when purchasing fuel 

don’t use your N when announcing on ctaf. Just color and MM. 

its not perfect but it doesn’t make you low hanging fruit either. 

[RobertGary1]

2 hours ago, steingar said:

I wouldn't do a damn thing unless the letter came certified.  If they try to collect I'd just say "what letter?".

At least in California you don't need the letter to be certified to provide proof of service my mail. Just the secretary signing she put it in the mailbox is accepted by the courts.