Today's Message Index:
----------------------
1. 09:58 AM - sales/use tax RV 9 (kerrjohna@comcast.net)
2. 10:25 AM - Re: sales/use tax RV 9 (deuskid)
3. 11:04 AM - Re: Re: sales/use tax RV 9 (Dale)
4. 03:47 PM - Re: sales/use tax RV 9 (Streiker, Stephen D.)
5. 09:02 PM - Re: Re: sales/use tax RV 9 (Ralph Cloud)
Message 1
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| Subject: | sales/use tax RV 9 |
recent threads discussed state use/sales tax on homebuilt aircraft. obviously
utah monitors the faa registration. tax plus interest from the date registration
was issued has been assessed. they have assigned a fair market value of $56,900
on the RV9. The tax levied is $3470.90.
it probably is not worth haggling over the fmv but raising the date from which
interest is assessed might be worth a few pennies.
<html><body>
<DIV>recent threads discussed state use/sales tax on homebuilt aircraft.
obviously utah monitors the faa registration. tax plus interest from the
date registration was issued has been assessed. they have assigned a fair market
value of $56,900 on the RV9. The tax levied is $3470.90.</DIV>
<DIV> </DIV>
<DIV>it probably is not worth haggling over the fmv but raising the date from which
interest is assessed might be worth a few pennies.</DIV></body></html>
Message 2
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| Subject: | Re: sales/use tax RV 9 |
--> RV9-List message posted by: "deuskid" <empire.john@gmail.com>
I wonder why they are assessing tax on the FMV? It seems to me that they should
assess on the purchases to create the aircraft. They would be taxing you on
your labor and I am no expert but that is taxing a 'phatom' purchase.
I think I would sum up all the invoices [including shipping] to come up with total
purchases, less any taxes assessed on those invoices and use that amount as
the sales/use taxable amount.
I do believe they have an argument re: interest. You should have paid use tax
the year you bought the part. So, sum up the parts purchased by year. Might
be smart to pay use tax each year of build on the parts purchased that year.
John
Read this topic online here:
http://forums.matronics.com/viewtopic.php?p=53114#53114
Message 3
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| Subject: | Re: sales/use tax RV 9 |
--> RV9-List message posted by: "Dale" <slickrock@been-there.com>
--> RV9-List message posted by: "deuskid"
> "I wonder why they are assessing tax on the FMV? It seems to me
> that they should assess on the purchases to create the aircraft.
> They would be taxing you on your labor and I am no expert but
> that is taxing a 'phatom' purchase."
------
As the tax commission explained to me, you are right. It is after all
it is a SALES tax. You can present your case and show receipts/invoices,
and only pay sales tax on what you actually spent (and did not pay sales
tax on).
If you cannot prove you already paid sales tax, or don't have
receipts/invoices, they will then use the FMV.
Now, PROPERTY tax is different and assessed based on FMV.
Message 4
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| Subject: | sales/use tax RV 9 |
And another good reason why all aircraft should be held inside a
Delaware corporate entity.
There is no good reason to register the aircraft in the domicile that is
sits.
Stephen D. Streiker
steve@streiker.com
M: +1 323 252 0277
________________________________
From: owner-rv9-list-server@matronics.com
[mailto:owner-rv9-list-server@matronics.com] On Behalf Of
kerrjohna@comcast.net
Sent: Monday, August 07, 2006 9:57 AM
Subject: RV9-List: sales/use tax RV 9
recent threads discussed state use/sales tax on homebuilt aircraft.
obviously utah monitors the faa registration. tax plus interest from
the date registration was issued has been assessed. they have assigned a
fair market value of $56,900 on the RV9. The tax levied is $3470.90.
it probably is not worth haggling over the fmv but raising the date from
which interest is assessed might be worth a few pennies.
Message 5
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| Subject: | Re: sales/use tax RV 9 |
--> RV9-List message posted by: "Ralph Cloud" <rv9ralph@flash.net>
Remember there are 2 issues. Property Tax, in CA assessed for FMV by the
county the aircraft is based in and the Sales/Use Tax, assessed by the
state, based on the amount paid for the pieces and parts.
Below is a post from a local Northern California lister. This
information does only apply to California, however it may be similar in
other states.
Ralph, Livermore, CA
Wings - Fuse in box - Taxes to be paid upon completion
Subject: RE: [NorCal-rvlist] More Tax questions
Leave it to me to comment on my own question ;-)
I called the BOE (Board of Equalization, the CA state taxing body) today
and here is what they said... If anyone's experience
has been different, please let me (us) know. The woman on the phone gave
me
two choices when it comes to paying the use tax.
OPTION 1) Pay use taxes when the kit is purchased. If this option is
selected, when payment is made, a serial number would need to given to
the
BOE and they will create an account/file. When the plane is eventually
registered (with the same serial number) they will have the prior
payment on
file and tax will not be assessed for items already taxed and paid. Just
be
sure to save copies of all your records/receipts/payments she warned.
OPTION 2) Don't report or pay anything now, but pay it all at once when
the
plane is registered. The registration will trigger a BOE review and
subsequent tax bill.
I was surprised to hear her tell me that in either case, the Use Tax
would
be based on the price paid for the kit(s), NOT the value of the
aircraft.
She confirmed this with someone else in her office and gave me the
example
that if I paid $10,000 for the kit, even though the aircraft might be
worth
$80,000 finished, the Use Tax would only be based on the $10,000 kit
price.
I told her that this is done in stages over years and should I just send
in
additional Use Tax payments as more kits, engine, etc. were purchased.
She
said that if this project is multiple purchases over the course of time,
it
might confuse the BOE, and option #2 above would probably be better. She
reiterated that if option 2 were selected the same would hold true, you
would only be taxed on the purchase price of what you bought, NOT the
value
of the aircraft, again saying they would look at the receipts.
Just reporting what I was told... but please take this with a grain of
salt
and confirm it with the BOE if you need to.
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