Looking for some information from the California aircraft owners in the group. I will be moving to Redding, Ca soon and want to make sure I understand the costs for my airplanes in California. As far as I can tell, since I purchased them outside of California way more than 90 days ago, the use tax does not apply. I do see reference to property tax however. For boats and cars this is included in the registration fee annually. What I can not find is if there is an annual property tax on aircraft if keep in California, and if there is, at what rate, and in what manner is it billed.

Shasta County is right around 1.25% from what I recall.

Your airfield will sell you out...er...give your N number to your local county assessor and they will send you a form to complete and return along with a check.

Paid yearly.

Not that big of a deal.

Now the use tax...thats a big pile of fooey.

Why on earth would you move to this state we're all trying so hard to flee?


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BradleyP wrote:....Your airfield will sell you out...er...give your N number to your local county assessor and they will send you a form to complete and return along with a check........
Why on earth would you move to this state we're all trying so hard to flee?

In Washington, I'm pretty sure the state revenue dept monitors new FAA aircraft registrations.
If you don't show up at a state revenue dept office to pony up your use tax when you buy an airplane, eventually they will send you a letter demanding it....plus a penalty. They charge the tax based on a blue book value, not your bill of sale amount.
Too many $10K Bonanza's I guess....

Washington has a state sales tax, Oregon has a state income tax, but California has both.
I wouldn't be surprised if they had both a one-time sales tax on airplanes, plus an annual property tax.
WA has a yearly registration fee, but it's only $65 for single engine airplanes.

FWIW I fled the Los Angeles area 25 years ago, two weeks after the Rodney King riots, and you couldn't pay me to go back there.
There are some other places in the state which are pretty awesome...
but it seems like the politicians & bureaucrats are doing their best to ruin the whole state.
That's their idea of "equality" I guess.

Good question. Not by choice, but necessity. Grew up there and finally got out and now they are sucking me back in.

Use tax should not be an issue. It used to be a 12 month period between 2004-2007 prior and post to those years it is a 90 day period from the time you bought it until you bring it into the state. I have had them both for much longer than 90 days. However with the property tax and hangar rates I will be making a big decision on which airplane to keep, can't keep both.

You can avoid the CA Property tax if either: your aircraft is 35 years or older or if it is a unique homebuilt type. That means you registered it as HopeItFlies Aircraft or equivalent as opposed to Kitfox Aircraft. I am amazed at the number of pilots who pay property tax in CA when they really don't have to...

Hope that this helps...

Blue skies,

Tom

TommyN wrote:You can avoid the CA Property tax if either: your aircraft is 35 years or older or if it is a unique homebuilt type. That means you registered it as HopeItFlies Aircraft or equivalent as opposed to Kitfox Aircraft. I am amazed at the number of pilots who pay property tax in CA when they really don't have to...

Hope that this helps...

Blue skies,

Tom

Where is the 35 year rule written? Do you have a link?

Here is the applicable part of the tax code.

For purposes of this section, “aircraft of historical sign cance” means any aircraft that is an original, restored, or replica of a heavier than air powered aircraft that is 35 years or older or any aircraft of a type or model of which there are fewer than five in number known to exist worldwide.

https://www.boe.ca.gov/proptaxes/pdf/sample_boe260b.pdf

Blue skies,

Tom

It looks like there's more to it than just being 35 years old.

PROVISIONS OF THE REVENUE AND TAXATION CODE
220.5 (a)
(b) The exemption provided in subdivision (a) shall only apply if all of the following conditions are satisfied:
(1) The assessee is an individual owner who does not hold the aircraft primarily for purposes of sale.
(2) The assessee does not use the aircraft for commercial purposes or general transportation.
(3) The aircraft is available for display to the public at least 12 days during the 12-month period immediately preceding the lien date for the year for which the exemption is claimed. If the aircraft was rst made available for public display less than 12 days prior to the lien date, the exemption may be granted if the claimant certi es in writing that the aircraft will be made available for public display at least 12 days during the 12-month period commencing with the rst day the property was made available for public display. When applying for an exemption pursuant to this section, the claimant shall attach to that application a certi cate of attendance from the event coordinator of the event at which the aircraft was displayed as required by this paragraph.
(c) When claiming an exemption pursuant to this section, the claimant shall provide all information required and answer all questions contained in an af davit furnished by the assessor. The claimant shall sign the af davit, under penalty of perjury. The Assessor may require additional proof of the information or answers provided in the af davit before allowing the exemption.
(d) For purposes of this section, “aircraft of historical significance means any aircraft that is an original, restored, or replica of a heavier than air powered aircraft that is 35 years or older or any aircraft of a type or model of which there are fewer than ve in number known to exist worldwide.
(e) A fee of thirty- ve dollars ($35) shall be charged and collected by the assessor upon the initial application for an exemption pursuant to this section. [Emphasis added.]
Aircraft of historical significance shall be exempt from taxation.
SAMPLE

It is very easy to satisfy the above.

TommyN wrote:You can avoid the CA Property tax if either: your aircraft is 35 years or older or if it is a unique homebuilt type. That means you registered it as HopeItFlies Aircraft or equivalent as opposed to Kitfox Aircraft. I am amazed at the number of pilots who pay property tax in CA when they really don't have to...

Hope that this helps...

Blue skies,

Tom

Well its more involved then that... there are a couple provisions which exclude a large portion of people:

(2) The assessee does not use the aircraft for commercial purposes or general transportation.

This means for those of use that use our planes for work, even just a single business trip - we are not able to legally use this exemption. And I'm not sure what "general transportation" means (but I bet alot us would fall under that category) - it may even include people that don't use it for work - and just use it for getting around.


(3) The aircraft is available for display to the public at least 12 days during the 12-month period immediately preceding the lien date for the year for which the exemption is claimed. If the aircraft was made available for public display less than 12 days prior to the lien date, the exemption may be granted if the claimant certifies in writing that the aircraft will be made available for public display at least 12 days during the 12-month period commencing with the day the property was made available for public display. When applying for an exemption pursuant to this section, the claimant shall attach to that application a certificate of attendance from the event coordinator of the event at which the aircraft was displayed as required by this paragraph.

This is another gotcha - you can't just claim its a 35 years old and get out of the tax - you have to actually go display it at 12 coordinated event. that will more then likely cost you more in fuel then the actual tax is - not to mention making it to 12 events to display your plane can be a bit of a pain in the @SS.

What airport are you planning on keeping your Kitfox at? I am based at Benton, but as far as I know there aren't any hangars available. Would be fun to see your bird when you get here. Feel free to contact me with questions or just to get together.

53zero5seven044twofive
Jeff.

To comment on the original posters question, when you fill out the FAA Bill of Sale and submit it to the FAA they share the info to whatever state you are in. Also when you change address with the FAA they share the same. The particular county (in Ca) you move to will eventually contact you and will demand sales tax and property tax. If you didn't pay sales tax when you bought it you soon will, based on the $ amount you stated on the Bill of Sale. I don't know how that will work moving from a non use tax state like Oregon to California. BTW why would you want to move here? You looking for sanctuary? Your papers pleaseeeee.

Secondly you will be assessed about 1% of the purchased value so if you show say $60k on the B/S and you will pay 8% sales (use tx) and the county you move to will want $600+ property tax. They will give you an option to exempt it if it is 35+ years old it will cost you a one time fee of $35 and you will have to "exhibit" it 12 times per year and document it. You can do this at Flyins, air shows and get together. The "organizer" is supposed to keep records of who showed up in case of an audit. I've been doing this (exempting) for about 20 years now. You have to file the exemption paperwork each February (I think) 15th.

I left California for Washington 12 years ago, and I miss California desperately.

With that said EVERY place has plusses and minuses, California and Washington included.

I recommend a DE or NV corparation/ tax shield.

http://www.decorps.com.

I got by for several years with no Ca. property tax
Was tied down on others personal property at county a/p
friendly FBO. Then had it in FBO shop for some time.
"used photos from inside shop to show 'damaged'

Never got a notice till rented a damned county hangar.
Then A/P manager tagged me.

Some would fly their planes out to other county a few days a month like for a weekend visit and claim that is where they tied down- usually a private strip.

Bit of a hassle though.
In the end it was not that much.
No use tax as had bought it in Id. and left it there while "commuting"
bout twice a month back and forth in friends 180

Whoever I am

A little thread drift, but...
a guy I know has a residence in WA & another in OR.
Don't know which one is his primary (aka drivers license),
but he has his airplane registered at his OR address.
He officially keeps it there more than 50% of the year so it's all legal.
Some people register as a Delaware corporation to avoid taxes, (see the ads in Trade-A-Plane), but if your airplane is tagged as being kept in your state of residence I think you'd have to work pretty hard to convince anyone it's exempt from your taxes.
Sometimes it's best just to bite the bullet and pay.

On the waiting list for Benton. They have open/shade hangars but for a T I'll need to go to Redding Municipal. Should be moved in by early July. I'll look you up.

Benton used to have a nice little one lady diner.

Would occasionally stop there on way to strip
on north side of Klamath near Hamburg.

If you can rent from a a friendly shop or FBO so you are on their property....

I did not pay Santa Clara for a few years till I got into a county hangar.

Wannabe thrifty

California like Arizona use the FAA files and quislings at your airport to determine if you are liable for the tax. This is loads of fun for those of us that do aircraft leasing for example. I never bring my lease aircraft into Arizona, but keep them in New Mexico. This is for several reasons, not in state, no tax and New Mexico charges by the pound, not some mythical value they get to determine which often defies logic. Then there is the super cheap storage rates in hangers in Gallup for example, a Caravan is $200 a month stored in a heated hanger. There are several exemptions here, first if its over 50 years old, it is $25 as an antique. Then there is over 40 years old, then it is merrily old and again $25. If it is not airworthy or under a work order, then $25 again (think fields of stored airliners here).

Now years past lots of folks paid for tie downs in Oregon, who where living in California. It would seem the border airports in Oregon had virtual fleets of aircraft paying tie downs and occasionally buying fuel there. I have no idea if that still goes on. Oregon is also a popular title transfer location, not having sales tax on aircraft. It becomes problematic when you rent a hanger or pay for a tie down. Airport Managers are compelled to report tenants to the state. So if you pay for a tie down, then you would seem not to be able to use that location scam.

Experimentals had some exemptions, but these may have slipped away as their popularity increased. Still there may be a lower rate applied. There is in Arizona, just don't know what it is. You may want to check on the individual county's rate and it may make your decision on airports a bit easier.