Aircraft Sales Tax

[Jimhamilton]

Hey Mooney owners, I need your advice.  I bought my Mooney last year in Texas, however I live in Utah and the new FAA registration for my Mooney is Utah, where I live and the Mooney is based.  Do I owe Texas the sales tax or Utah?  Thanks, Jim

[jwilkins]

I also bought my plane last year in Texas. Since I don't live in TX ( sometimes I wish I did, but AZ is also a great state to live in ) I didn't file or pay any sales tax in TX. I was informally told that if I had purchased from a private seller it would be a 'casual sale' and not subject to the transaction tax under AZ rules, but it wasn't so I never checked this out.

When I got back to AZ I had to file and pay a transaction tax (sales tax by another name) on the difference between my trade in and purchase cost. The transaction tax rate was lower than the rate we pay for combined State, county, and local taxes. Apparently some of the local levies do not apply. Here in AZ I also pay an annual registration fee or tax, too. Our Arizona State tax and Registration people are amazingly helpful and cheerful. It is sometimes hard to reach them , but they have all been very helpful.

Basically, if you took delivery and left TX you need to find out what the UT regulations are and follow them. Utah does, as many States do, give you a credit for taxes you paid out of State. Since you apparently didn't pay any, it doesn't apply.

AZ has a penalty for not promptly filing and paying the tax due, so you might want to check on UT to make sure you are OK on that regard. I am sure that you 'just' imported the plane into UT so you can show that the timing is OK.

Here's a starting point for you to read:

http://tax.utah.gov/selfreviews/aircraft/faq.pdf

Thank you for your efforts to support your local and State government through your sales and use taxes. I am sure they appreciate it.

Jim

 

 

 

[kerry]

I've never payed sales tax on a airplane.  I do pay property tax every year.

 

[KSMooniac]

You'll need to talk to an accountant/CPA in Utah, I'm afraid.  You'll likely not owe any tax in TX at all, but might in UT depending on the UT laws.  

Speaking to KS, we have a "casual sale" provision that allows a non-commercial entity/person to sell a plane now and then without triggering sales tax.  A friend of mine bought his Mooney from an individual in TX and registered it in KS without paying sales tax.  Other states MIGHT be similar, but maybe not.  I purchased mine from an FBO in KS and had to pay sales tax.  /grrrrr   

[DaV8or]

Quote: KSMooniac

Other states MIGHT be similar, but maybe not.