Another Sales Tax question

TimRF79

TimRF79

Pre-takeoff checklist
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Houston, TX
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Tim
At what point would who contact me about collecting sales tax?
 
What state? That totally varies from state to state.

In CA the Bureau of Equalization will contact you at the aircrafts registered address within around 6 months.

In other states (like Virginia) they may never contact you.
 
Fearless Tower said:
In other states (like Virginia) they may never contact you.
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...but beware, when they finally do you could be on the hook for penalties and interest all they way back to the purchase date if you do not report it and just wait and see if someone sends a bill down the road. It is on you to properly report the sales/use tax, not on them to send ya the bill if and when they figure it out.
 
In Colorado it's the Department of Revenue and then they will fail to credit the tax payment properly but somehow that oversight is magically corrected with a simple telephone call and no further documentation required. After that little evolution I called them derogatory names and frequently wondered if they did anything correctly or by a book.
 
I guess the State in which you transfer the plane matters?
This would be Texas.
 
TimRF79 said:
I guess the State in which you transfer the plane matters?
This would be Texas.
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Casual airplane sales in Texas may be free of sales/use tax as long as no business is involved. Also, if the new owner bases the aircraft outside of Texas then the basing state may tax the sale. As an example I bought my plane in Tennessee but paid no taxes there. I did pay taxes in Colorado which is where I based the plane.
 
TimRF79 said:
At what point would who contact me about collecting sales tax?
Click to expand...
The greedy will find away to contact you, don't worry.
States go for sales tax usually within a few months of registration transfer but since you are in Texas, you should qualify under the "occasional sale" exemption.
Counties get their greed on in January once they do their "random" walkaround at local airport, collecting tail numbers of possible business tax victims. Then they send demand letters which can vary greatly in the degree of threatening tone. Those demanding letters can be usually dismissed, though, for a private aircraft.
YMMV
 
Texas Comptroller runs the show. If you have no tax ID number, (if you own a business that sells stuff), and it's a private party sale (and the seller doesn't have a tax ID number), then you can fill out a statement of occasional sale and be tax free (seller must sign). This form needs to be submitted to the Comptroller and approved. I submitted mine two years later and it was approved, but I doubt that would be the case if they came knocking on my door.

https://comptroller.texas.gov/forms/01-917.pdf
http://www.lonestarauctioneers.com/auctions/TarrantRegional/AircraftTaxes.pdf
 
I was contacted by the county inquiring about my intentions of owning an aircraft, whether it was for a commercial venture or personal use. Couldn't think of any rules that bound me to answer their questions, so I put the letter in the round file and haven't heard from them since.
 
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