doesn't even have to be registered to a Kalifornia owner

Taxation Without Representation....Wasn't that one of the pillars of the American Revolution???

Rather than start a new thread, I thought that I would put it here. As some know, I bought a 182B in RI two years ago this coming February. Stored it there for the next 5 weeks (weather), then flew it home. Kept it in Weed for a few months then tied it down in Ashland Oregon.

When I got the stuff from State Board of Equalization for the paying of the sales (use) tax, I filled out the paperwork to proove that the plane was purchased for use primarilly out of the state. I took title to the plane out of state and kept it out of state for at least 90 out of the first 180 days that I owned it. Also put less that 50% of the hours for the first 180 days out of the state.

Yesterday I got there ruling. It states "After review of the documentation you provided, the Board determined that the not purchased for use in California exemption be granted enabeling us to close your Consumer Use Tax file associated with the above referenced number.

In other words, I saved 7.25% of the purchase price. Any sugestions on where to spend that money. I will call it the QMDV Stimulous package.

Tim

qmdv wrote: Any sugestions on where to spend that money. I will call it the QMDV Stimulous package.

Tim

Well, you can use it for gas to fly down to Mina, and then spend the rest at the Wild Kat Ranch. At least there you get screwed while getting screwed out of your stimulus money.

Gump

Been thinking of flying to Mina, but I think I will stay away from the ranch that you recomend. Deasert Lobster sounds good in the middle of that desolate, God forsaken state.

Can you taxi to a mogas pump, Gump or gust go for a hump.

Tim

At Mina you can hump, pump, or take a dump. And at your age it might be all three at once.

Gump

Speaking of Desert Lobster. Bob from the Lobster talked the NDOT guys into blading off the old rail spur from the airstrip to the restaurant. Now you can taxi right into the parking lot without having to drive down alongside Hwy 95.

http://seattletimes.nwsource.com/html/n ... ina04.html

Gump

Aw, crap. Forgot about the sales tax here in Taxyafornia. Looks like my Champ/Citabria/Cub second airplane plans will be set back a few more months/year while I slave away for the guv't. One more reason to blow my savings on an instrument rating rather than a second airborne money pit - At least they aren't taxing CFII labor - YET.

So, Tim, how does that work? Because you have your plane hidden at your place you can duck the tax collector? Seems like they get around to the public airports pretty regular like, to make sure they are getting theirs. I wonder how that works at privately owned fields? Can the airport manager tell them to go perform unmentionable acts upon themselves?

Flynengr

A quote from Kalifornia Use tax regulation 1620:

(5) PURCHASE FOR USE IN THIS STATE - VEHICLES, VESSELS, AND AIRCRAFT– 12-MONTH TEST (FROM OCTOBER 2, 2004, THROUGH JUNE 30, 2007, AND AFTER SEPTEMBER 30, 2008).

(A) Purchased for Use in California. Except as provided in subdivision (b)(5)(D) below, the provisions of subdivision (b)(5) apply from October 2, 2004, through June 30, 2007, and after September 30, 2008. A vehicle, vessel, or aircraft purchased outside of California which is brought into California is regarded as having been purchased for use in this state if the first functional use of the vehicle, vessel, or aircraft is in California. When a vehicle, vessel, or aircraft is purchased outside of California, is first functionally used outside of California, and is brought into California within 12 months from the date of its purchase, it is rebuttably presumed that the vehicle, vessel, or aircraft was acquired for storage, use, or other consumption in this state and is subject to use tax if any of the following occur:

1. The vehicle, vessel, or aircraft was purchased by a California resident as defined in section 516 of the Vehicle Code, as that section now reads or is hereinafter amended.

2. In the case of a vehicle, the vehicle was subject to registration under Chapter 1 (commencing with section 4000) of Division 3 of the Vehicle Code during the first 12 months of ownership.

3. In the case of a vessel or aircraft, that vessel or aircraft was subject to property tax in this state during the first 12 months of ownership.

4. The vehicle, vessel, or aircraft is used or stored in this state more than one-half of the time during the first 12 months of ownership.


So Basically, the way I interpret this is...If you buy a plane out of state, you must keep it out of state for at least 6 months out of the first 12 months of ownership to be exempt from CA use tax. It used to be called the "90 day test" but now it's 6 months! I've heard there are a number of other ways to avoid paying this tax, but I'm not too sure about them. I'm in this boat right now...if I don't get my plane out of Kalifornia by the end of Feb '10, and keep it out for at least 3 months after, I'll have to pay the tax. Luckily its a cheap Cessna 140, so it won't break the bank...at least if I pay the tax, I won't have to look over my shoulder all the time for the tax man! Well at least not for this transaction anyway

I built my Kitfox in Oregon. I think it was $37 yearly for an experimental registration there.

When I moved to Washington I was given the honor of paying 8% sales (use) tax on my airplane, boat, and snowmobiles.

I called the Washington State DOT Aviation Division to find out the amount to register my kitfox and pay the use tax. She told me it was $35 per year for registration with the DOT and to call the Department of revenue and gave me a phone number to pay the use tax first and to attach a receipt for that with the registration application.

I then called the department of revenue. She, asked "What is the value of it?"

I asked "How do I find that?"

She said, " I have a book I can look it up for you......well my book doesn't list a Kitfox, is it similar to any other airplane?"

I said "Yes, it is almost exactly the same as an Avid."

She asked, "How does $78,000 sound?"

Long pause from me. Thinking don't be rude, then politely asked, "Does your book actually say an Avid is worth $78,000 dollars, that sounds a little high for my kitfox?"

She replied, "well it doesn't list an Avid but it does list an Aviat which sounds very close to Avid."

At that point I realized that the department of revenue doesn't know anything about airplanes. I asked her if there was someone that I could meet with to discuss the $78000 ($6240 use tax). She gave me a name and address. I went in, said I need to pay use tax on an airplane, he asked "What is the value", I told him a number considerably less than $78,000, he said okay and took considerably less than $6240 from me and I left feeling lucky.

Man I miss Ohio everything is cheap no sales tax and 35 dollars a year
As I remember car plates are about the same amount, not based on the value of the vehicle as in Indiana, a new car can cost $1000 to plate.
Go Bucks

Indiana is 7% sales tax and $.01 per pound on aircraft 25 years or older and 25$ handling fee.
I didn't realize about the sales tax till last week, ouch that hurt

I am not an expert on any other state or even Kalifornia. I am an expert on aircraft purchased out of state in Feb of 2008.

90 day test------you take title out of state and do not bring it into the state for 90 days.

180 day test-----you take title out of state and keep it out of state for at least 90 days in the first 180 and less than half of hours are flown in Kal. That is how I qualified. I will not argue the point cus I have the letter.

The laws change, so check it out. It would have worked if you live in Kal and buy a Kal plane but fly with the owner to Oregon to take title.

Tim

Hey Tim, isn't there some other way to avoid paying the yearly tax by showing your plane at a fly-in/airshow at least twice year? I think your plane quilifies for this since it's over 50 years old.

Problem is... Where you park it for the 90, 180, however many days, is gonna have tax collectors wanting a chunk of you too.

I parked an airplane in Palmer, AK for a couple of weeks once upon a time because I got weathered out of where I needed to go for a job, finally got back to get it, then flew the airplane back down Lower 48. About a month later the tax bills from Palmer started showing up in my mailbox. I had a hell of a time convincing them that I was only passing through.

Gump

Have not heard a word. Oregon is a bit slow.

I called these guys http://clippertax.com/index.html after I flew the plane from RI to Kal. After the free consultation I moved it to Ashland , OR (40 minut drive from my house).

I will admit that it was more convenient for me that sombody living in Bay area.

Tim

I note no one from Alaska responded to this thread I guess they don't want droves of airplanes headed this way

58Skylane wrote:Hey Tim, isn't there some other way to avoid paying the yearly tax by showing your plane at a fly-in/airshow at least twice year? I think your plane quilifies for this since it's over 50 years old.

My plane qualifies for that too. I think you have to show it 10 or twelve times. That is my next quest. When I know more and put it to the test, I will be an expert and will then let you know.

Tim

Paid sales tax on it when I bought it. It is considered personal property no different than my riding mower..therefore I pay no further taxes on it...for now. You never know what the state Unicameral might dream up for taxes. HC

westernpilot wrote:I'll tell you how communist Kalifornia has become, the airport managers here have to give the county tax assessors all the data on the the aircraft, either tied down or hangared, yearly, including registration and insurance info (hull value???) and then you get a form from the tax assessor asking how much you paid for the plane, if it has been re-engined, what avionics and accessories are on board etc. They take all this data and if the value doesn't seem high enough, they'll come up with their own, then they send you your annual personal property tax bill. Plane doesn't even have to be registered to a Kalifornia owner, just has to be here a certain amount of time.

What a privledge it is to live in the Golden State

Don't even ask about the gun laws...

The above quote could be a crystal ball view of what the future of the rest of "the land of the free" will look like far too soon.

qmdv wrote:

58Skylane wrote:Hey Tim, isn't there some other way to avoid paying the yearly tax by showing your plane at a fly-in/airshow at least twice year? I think your plane quilifies for this since it's over 50 years old.

My plane qualifies for that too. I think you have to show it 10 or twelve times. That is my next quest. When I know more and put it to the test, I will be an expert and will then let you know.

Tim

Yep, that's more like the number. But I don't really need to know too bad, because I don't plan to move my plane to Calfornia.

On another note, just got my regestration today. Idaho wants a penny per max gross pound for your plane. So, 2650 lbs is my gross wieght for my Skylane. Comes out to be $26.50 per year. Not bad, I think.

chickenair wrote:I note no one from Alaska responded to this thread I guess they don't want droves of airplanes headed this way

We did. As MTV said, "No tax, No fees, No service."

The state might not get you, but the borough or municipality certainly will.

Gump