AKJurnee wrote:

Flymac wrote:Shoulda done a Delaware Corporation....Never pay aircraft sales tax again...

That doesn't work in the state of Kalifornia. If you have any proof it does, please PM me.

PS anyone recommend a Tax attorney experienced with the tax equalization board of CA please PM me also. It has to do with being taxed on an airplane not purchased in CA it was taxed for the full sale price because they think it was. Total BS.

Delaware corporation doesn't work in Utah especially when you have a hangar lease with Salt Lake City Corporation.

Sorry, can't help with an attorney.

Rich

I think they did away with that program now. Kalifornia must of found out citizens liked it. Bye Bye!

Adding to this dated topic because I have went through this process myself in colorado in the past 2 weeks. Was overall a perfectly pleasant experience tips from this thread really helped me out, specifically the form (DR-0252) that mountainmatt linked to (https://www.colorado.gov/pacific/sites/ ... DR0252.pdf) and the various issues people had gone through that made it where I didn't have to.

1. Normal CO use tax is 2.9%. RTD adds 1% and the CD adds 0.1% if you're within those areas. This only applies if the plane is stored/used in that area. For many owners, they live within those areas but the plane is hangared elsewhere. You do not need lease receipts or anything like that in this case. Just call them (303-238-7378) and get the location code for the area where it's stored and make sure it's outside of the extra tax districts. This helps them know that you know what you're doing so it doesn't just look like you're not paying the taxes you owe. I did not want any mistakes on the form so I just called and the lady cleared up any confusion on all the boxes and was nice and helpful.

2. I submitted my form and check over 6 months after I brought the plane to Colorado. They didn't say anything about being late or whatever. Somewhere on a form (can't remember), it says that it has to be submitted that fiscal year, but if I did it again, I would just submit in the first 30 days to keep it super kosher.

3. I didn't have an actual Bill of Sale with the purchase price, so these are the documents I submitted via mail:
- DR0252 form completed
- Purchase agreement from the sale that had been signed by me and the seller 6 months ago. Had the purchase price on it.
- A document from my escrow transaction that also had the purchase price listed (belt and suspenders approach to not having an actual Bill of Sale)
- Printout of the FAA registry info for my plane showing that I indeed owned it, was listed in Colorado, etc.
- FAA Bill of Sale ($1 +OVC). Hey, why not, right?
- Typed letter explaining what I was doing and the included documents, just in case there was confusion.


I realize this is probably above and beyond, but I prefer approaching the situation in a way that completely takes care of it the first time. Hit them with everything you have. I saw my check clear a week ago, waited a week for them to process it, then I called today to confirm and they said I was good to go and would mail me a confirmation.

Hopefully my experience can help someone as other's helped me.

-asa

It's probably already noted in this thread, but Washington uses a bluebook value to calculate use tax.
Any deviation (lowering) of value from that bluebook value requires that you tell the dept of revenue clerk why-
for example, high time engine, crappy paint / interior, and anything else you can think of.
I paid less than their bluebook value for my C180 3 years ago, but they (grudgingly) taxed the lower sale amount after I explained why.
"Use tax" is the same as sales tax here in WA, in my county it's 9%. (ouch)

Buyers should carefully research the terms sales, use and excise tax for the state(s) involved. For example, paying state and county sales tax in one state might not protect you from a use tax. Concluding the sale in state with a fly-away exemption such as KS, MO, IL might save you from double taxation.