Going To Jail???

[Tim Haake]

I got a nasty gram from the state last week. Seems they are now making inquiries into the FAA registry and found out I resgistered an airplane (my 47 T-Craft) two years ago and I did not pay sales tax. I live in Missouri. As I understand it from other owners up till now they have not had a way to track sales and to tell the truth I do not know of but only one that has paid a sales tax.

They are asking for me to file a "Use Tax" form, pay 4% of the purchase price plus a penalty. If I do not file within 30 days they will try to assess the value and do it for me.

OK, I want to pay the tax. What is a current average going price for a 47 T-Craft these days. Forget what this particular plane looks like, I want to know the average going fly away price. It looks like they do not know what I paid for it.

Tim

[N74DV]

Re: Going To Jail???

did you buy the airplane in state?

I got the same letter from our treasury secretary. I called her up and said go pound sand. I bought the Tcraft from a private party in Michigan.

But if you must pay then I'd say the value now is not what it was 2 years ago. Go low. Maybe $15K

[Tim Haake]

Re: Going To Jail???

Yes, I bought it from out of state.

This 'Use Tax" form appears to be really tailored for Vendors buying product out of state although they do speak of one small example in the statues on the MO.Gov website wherein it appears there is a thresehold as to when you do start paying this "Use Tax". It looks like it starts at a purchase or group of purchases that amount to $2,000 or more per year.

I am a tax account good buddy and I think I am going to take it to him for his comment.

Tim

[Ragwing nut]

Re: Going To Jail???

I got a nasty gram from the state last week. Seems they are now making inquiries into the FAA registry and found out I resgistered an airplane (my 47 T-Craft) two years ago and I did not pay sales tax. I live in Missouri. As I understand it from other owners up till now they have not had a way to track sales and to tell the truth I do not know of but only one that has paid a sales tax.

They are asking for me to file a "Use Tax" form, pay 4% of the purchase price plus a penalty. If I do not file within 30 days they will try to assess the value and do it for me.

OK, I want to pay the tax. What is a current average going price for a 47 T-Craft these days. Forget what this particular plane looks like, I want to know the average going fly away price. It looks like they do not know what I paid for it.

Tim

They don't have away to track other than going through the current registry. Get a bill of sale made up for the amount paid (whatever you want) and pay that amount. We have run into this problem here in OK before where they tried to charge us with use tax on projects, wtf? I send them a pic and tell them they can bite me if they think I am going to pay use tax on a jungle gym shaped like an airplane. All they know is there is a piece of paper that says you own an airplane, and they will assess full market value no matter what shape it is in, if you don't do it first.

[gfortin]

Re: Going To Jail???

I bought mine in MAss and registered in Maine. They wanted 5%. I gave them a notarized sales slip for half. No problem

[jim cooper]

Re: Going To Jail???

Some states say "If you hangar or use the aircraft in that state, then you must pay the tax." If you buy an aircraft BUT keep it in another state, then you do not have to pay it. Then theres Delaware! If you register the aircraft (YOURS!) in Delaware (see ad in trade a plane or google delaware registry) you do not have to pay the tax, which is why the majority of CORPORATE aircraft are registered in Delaware plus ALOT of private aircraft. Please check this with your accountant and he will have to look it up as most of them know little about aircraft taxation. Do some research, don't trust my word as all states are different. My Stearman was registered in Delaware and it cost 90.00 per year. If you call Delaware registry they will explain it in detail. JC

[crispy critter]

Re: Going To Jail???

Some states say "If you hangar or use the aircraft in that state, then you must pay the tax." If you buy an aircraft BUT keep it in another state, then you do not have to pay it. Then theres Delaware! If you register the aircraft (YOURS!) in Delaware (see ad in trade a plane or google delaware registry) you do not have to pay the tax, which is why the majority of CORPORATE aircraft are registered in Delaware plus ALOT of private aircraft. Please check this with your accountant and he will have to look it up as most of them know little about aircraft taxation. Do some research, don't trust my word as all states are different. My Stearman was registered in Delaware and it cost 90.00 per year. If you call Delaware registry they will explain it in detail. JC

In Kentucky we have to pay 6% sales tax when we buy it,6% when/if we sell it,6% annual property tax,and a 6% annual usage tax!!!! This is not just with airplanes but also with cars,boats,motorcylces,etc. And we are one of the poorest states in the nation Go figure.

[tcraft]

Re: Going To Jail???

The Address that the owner used when registering with the FAA and the address where the aircraft is located are two different things. The taxing authorities take the easy way out and use the FAA database. Sometimes they have laws to force the airport into giving them a disclosure of the registration numbers tied down/hangared there (Arizona does this).

They tend to value a project, flying restoration or cream puff as if it was a rich man/womens toy and at full market price.

As far as jail goes, forget that. Its all about the money. You cant pay taxes from jail.

Dont be afraid to call them on in and dicker. They have less information to work with than you do. Dont cheat, but dont let them push you around either.

[Ray36048]

Re: Going To Jail???

Here in New York state, we are experts on taxes.

Yes, they want sales tax from all "casual sales". If you sell your lawn mower to your friend, they want you to collect the sales tax an send it in. They even want you to pay sales tax on stuff you bought out of state and did not pay the tax.

Yes, they check the registration of aircraft. If you send the tax and the required paper work when you buy an airplane, 2 years later the state will send you a letter asking for proof you paid the tax.

[jim cooper]

Re: Going To Jail???

Crispy Critter has it RIGHT! Its the little guy that pays the taxes, not corporations or the wealthy! You can get a good idea of this by picking up a book (paperback) called "Free Lunch" a best seller by Robert Cay Johnston. Many corporations are based in Delaware for this reason. G.M, Ford are two, many more included.Lots of DRUG companys too! No State sales tax. Many corporations are based in the Cayman Islands for the same reason, little or no tax. Reason? Its who we elect to congress which listens not to the voter but to LOBBYISTS! I may be corrected on this but I THINK that in Great Britian they give you a big TAX BREAK if you restore an old aircraft, especially an old war bird. (I'm not sure of this but I think I'm right.)jc

[AKbrew]

Re: Going To Jail???

Hey Guys,

I have an easy solution to all of this. Just move to Alaska. No sales tax, no state income tax, and lots of fun places to fly your Taylorcraft!

[guns68]

Re: Going To Jail???

I agree with AKbrew with one exception. Kodiak has personal property tax on aircraft, but not on boats, four wheelers, cars, etc. Horribly unfair, but that's where it's at.