So...if I live in WA and I buy a plane registered and based in CA, do I have to pay CA sales tax on the plane?

If you keep it in California and do not seek expert advice, you will pay Ca. sales tax and a yearly property tax. If you don't pay the taxes and get less than competent advice, when California finally comes knocking on your door, they assess back taxes and penalties.

The plane will not stay in CA.

I bought the 185 from California, and didn't have to pay sales tax cause it left the state permanently. If I recall correctly there was a time limit to get it out of the state - maybe a week or two. Not sure.

You won't pay sales taxe here in CA if you don live here or keep it here. But the Feds share info with CA and 6 mos after I bought my 180 I got a tax bill from Board of Equilization.

What is the board of equalization and what percentage did it charge you?

littlewheelinback wrote:What is the board of equalization and what percentage did it charge you?

They are the ones that you have to send the check too. The rate is different in each county some cities have a tax they charge. If you buy a plane here in California from a private party then you will only pay California tax if you keep plane in California.

Fly it to Washington and you pay to them what is required.

Tim

That yearly tax thing sound harsh. A perpetual annual levy on a personal item would suck. There must be some ways around that BS.

The Board of Equilization AKA BoE is the name of the entity that collects sale taxes and income tax. The blood suckers. If you live in another state and intend to keep the plane there you will only have to worry about your home state.
http://www.boe.ca.gov

Here is some interesting reading it applies to aircraft also.

Purchases for Use Outside California
A purchaser is not required to pay California use tax if the only use of the property purchased in California is to remove it from the state and it will be used solely thereafter outside this state. No other use can be made of the property. See Regulation 1620, subdivision (b)(9).

If the property is used in California for personal use or for recreation, use tax applies. For example, you, as a resident of Oregon, purchase a boat in San Diego and immediately leave for home. Along the way, you stop at Marina Del Rey, have dinner, and have a boat decal added. The next day you fish in the Channel Islands. Later, you stop to visit friends in San Francisco and take them for a ride in your boat. The California use tax applies because you made a personal and recreational use of the boat in California, and did not simply remove it from the state.

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I bought my airplane in California, flew it to Washington and then paid the WA excise tax. No CA tax paid. (I'm however a resident of the Democratic Peoples Republic Of Washington)

In Washington you will pay a one time 'Use Tax" equal to the sales tax rate in the county you live in. If you paid sales tax whenever and whenever you bought the plane then that amount will be deducted from your Washington use tax. Here's the rules, pretty short.
http://dor.wa.gov/docs/pubs/industspecific/aircraft.pdf

When I moved to Washington from Oregon I called the Washington Department of Revenue:
Me: I just moved to Washington and need to pay the tax on my Airplane. How much is the tax?
DR: The tax amount is equal to the sales tax based on the value of your airplane.
Me; How do I determine the value?
DR: I have a book, I can look it up for you. What kind of Airplane?
Me: It's a 2000 Kitfox.
DR: My book doesn't have a Kitox listed, is the airplane similar to another type of airplane?
Me: Yes, It is almost exactly the same as an Avid Flyer.
DR: How does $78,000 sound?
Me: That sounds a little high for my little airplane that I built in my garage. Does your book really list an Avid Flyer worth $78,000?
DR: No, that's for an Aviat and that sounds similar to Avid.

The Washington State Department of Revenue combs the FAA Data Base for aircraft registered in Washington. They will find you if registered in the State. Best to contact them and pay to avoid penalties which they can levy. For projects, damaged or aircraft not in their data base they will negotiate value. Works just like described above.

I live in CA, sold an aircraft to a guy in Utah. For sales tax reasons, the buyer insisted that the transaction occur in Utah, so I delivered the plane to him and completed the transaction there. It also solved an insurance problem for him. It's probably not necessary in order to avoid CA sales tax, but is an option if you're worried about it.

tcj wrote:In Washington you will pay a one time 'Use Tax" equal to the sales tax rate in the county you live in. If you paid sales tax whenever and whenever you bought the plane then that amount will be deducted from your Washington use tax. Here's the rules, pretty short.
http://dor.wa.gov/docs/pubs/industspecific/aircraft.pdf

When I moved to Washington from Oregon I called the Washington Department of Revenue:
Me: I just moved to Washington and need to pay the tax on my Airplane. How much is the tax?
DR: The tax amount is equal to the sales tax based on the value of your airplane.
Me; How do I determine the value?
DR: I have a book, I can look it up for you. What kind of Airplane?
Me: It's a 2000 Kitfox.
DR: My book doesn't have a Kitox listed, is the airplane similar to another type of airplane?
Me: Yes, It is almost exactly the same as an Avid Flyer.
DR: How does $78,000 sound?
Me: That sounds a little high for my little airplane that I built in my garage. Does your book really list an Avid Flyer worth $78,000?
DR: No, that's for an Aviat and that sounds similar to Avid.

and it's people like this who are gonna be in charge of your health care!!!!

"DR: I have a book, I can look it up for you. What kind of Airplane?
Me: It's a 2000 Kitfox.
DR: My book doesn't have a Kitox listed, is the airplane similar to another type of airplane?
Me: Yes, It is almost exactly the same as an Avid Flyer.
DR: How does $78,000 sound?
Me: That sounds a little high for my little airplane that I built in my garage. Does your book really list an Avid Flyer worth $78,000?
DR: No, that's for an Aviat and that sounds similar to Avid." THAT SOUNDS SIMILAR TO AVID

Thanks for all the info.

iceman wrote:and it's people like this who are gonna be in charge of your health care!!!!

There's someone in charge?