Sales tax!

[59Moonster]

1 hour ago, dlthig said:

Time to move to Kansas!

Just don't do it if you have a boat! That will get taxed to high heaven 

[KB4]

Close enough to NY, CT maybe Mass too where there is no GA sales tax.  Research if must be based there and if so for what length of time if any is specified. 

[Bravoman]

13 hours ago, GeeBee said:

Sales Tax on cars is a whole different issue now that ad-valorem tax on cars has been eliminated. 

Here it is from the State revenue web site

https://dor.georgia.gov/taxes/business-taxes/sales-use-tax/what-subject-sales-and-use-tax#field_related_links-486-17

Can the sale of an aircraft or watercraft be excluded from the tax when the transaction meets the requirements of a casual sale? 

Yes. The sale of aircraft or watercraft is not subject to sales tax when the sales transaction meets the requirements of a casual sale. Ga. Comp. R. & Regs. r. 560-12-1-.07.

 

What does 560-12-1-.07 say?

 

http://rules.sos.ga.gov/GAC/560-12-1-.07?urlRedirected=yes&data=admin&lookingfor=560-12-1-.07

 

Rule 560-12-1-.07. Casual Sale

 

 

(1)	Invoking the rule of de minimis and because of the difficulties of administration and enforcement, no sales or use tax liability will be enforced against either the sellers or the purchaser in a casual sale transaction as herein defined, except as hereinafter provided.

(2)

A "casual sale transaction" is:  (a) A sale in which the tangible personal property involved was not acquired or held by the seller for use in the operation of his business or for resale; or (b) A sale of tangible personal property acquired or held by the seller for use in the operation of his business (not acquired or held for resale) if the total selling price of such sale and all such sales made during the calendar month of such sale and the preceding eleven calendar months does not exceed $500; or (c) A sale of tangible personal property acquired or held by the seller for use in the operation of his business (not acquired or held for resale) if such sale is made in a complete and bona fide liquidation of a business of the seller. For purposes of this paragraph the term "business" means a separate place of business subject to registration under the Act; the term "a complete and bona fide liquidation" means the sale of all the assets of such business conducted over a period of time not exceeding thirty days from the date of the first sale of such assets, or a longer time if approved by the Commissioner as a bona fide liquidation.

(3)

Notwithstanding any other provision of these regulations, when any seller sells tangible personal property for use or consumption through an agent, broker or other person who is regularly engaged in making sales of tangible personal property, either as a principal or as an agent, then, such a sale will not be deemed a casual sale transaction.

(4)

Notwithstanding any other provision of these regulations, if a sale is made by an individual who is employed by or associated with another person who is regularly engaged in the business of selling the same type of tangible personal property involved in such sale, then, such transaction will not be deemed a casual sale transaction and such individual shall register and comply with the obligations and liabilities of a dealer under the Act.

Cite as Ga. Comp. R. & Regs. R. 560-12-1-.07

Well, that  certainly creates  a disincentive here in Georgia to purchase through a broker. Perhaps a deal with a broker involved could be structured to look otherwise, although that I guess could be argued to be fraud if they ever looked behind such a transaction. What about the use tax? I don’t think that one is avoidable.

[GeeBee]

31 minutes ago, Bravoman said:

Well, that  certainly creates  a disincentive here in Georgia to purchase through a broker. Perhaps a deal with a broker involved could be structured to look otherwise, although that I guess could be argued to be fraud if they ever looked behind such a transaction. What about the use tax? I don’t think that one is avoidable.

Read the first sentence in the Regulation 560-12-1-.07

"Invoking the rule of de minimis and because of the difficulties of administration and enforcement, no sales or use tax liability will be enforced against either the sellers or the purchaser in a casual sale transaction as herein defined, except as hereinafter provided."

 

The people that you know who were hit did not structure their sale properly. One of the things I look for when buying used is "was it titled to an individual user for personal use". For a GA buyer that fact right there is worth 7%. You are correct, a purchase through a broker is more expensive in GA. So many people title their airplanes so they can write them off in their business, such as "ABC Construction Company" which does wonders for liability, but it makes an exempt sale impossible in GA.

 

[spistora]

10 hours ago, ArtVandelay said:

I’ve been to Kansas, I’ll pay the taxes, thanks. ;-)

Yeah, there are a few trade-offs living here. We don't want to make it seem too attractive or everyone will move here.