California Use Tax

[Scott@KTYR]

California Use Tax

I called the California Board of Equalization and talked to a lady (first name) Ahone. 9165-445-9524 Opt #3 and #4. http://www.boe.ca.gov/pdf/pub79a.pdf

She said that Non-Resident in an Aircraft not purchased in Calf. And not purchased form a Calf. Seller or Broker would not be charged Use Tax or Sales Tax on the aircraft if it did not stay in Calf. More than 6 months of the first year after it was purchased.

She did say that over the phone information is not Legal Advise and if I need it in writing then I would have to visit this website http://www.boe.ca.gov/info/email.html
And submit my question in writing and they would email a legal response.

So in short, Non-resident with a newly purchased plane from out of state can visit Calf. For less than 6 months and not have to pay Calf. Taxes.

Side Note she did say that the County Tax Assessors office does make random checks throughout the year to check hangers to see what airplanes are based in their county.

Hope this info help.

 

[Jeff Oslick]

But the burden will be on you to prove this.

It can be done, but requires careful documentation, and you'll likely need to fight it with BOE if it is in the state for more than a casual visit or two in the first year.

 

[Kristin]

The burden is only on you if the BOE thinks that you might be a California resident and sends you a letter. That is pretty unlikely as the State of California has started any draconian sweeps that attempted to use ATC data or credit card data to find every aircraft that crossed into California.

On the off chance that a county assessor who was wet behind the ears wrote down N# on the transient ramp and sent letters, proving your residence outside of California should not be difficult.

 

[Jeff Oslick]

On the off chance that a county assessor who was wet behind the ears wrote down N# on the transient ramp and sent letters, proving your residence outside of California should not be difficult.

I'll just say "it depends". I've heard both horror stories and times when then discussions went fairly smoothly.

 

[JoseCuervo]

I'll just say "it depends". I've heard both horror stories and times when then discussions went fairly smoothly.

No, it really doesn't "depends". The State of Calif does not have resources to waste time filing false tax bills to tourists of their state. No County Assessor is going to tell someone to go monitor LiveATC.net to see if they can hear out of state planes landing.

And, what Calif DOES do is just what every other state tries to do, collect the taxes that are rightfully owed to them. As they should.

Old internet legends and clunky websites by self-anointed Aviation Tax "Experts" not withstanding.

 

[Jeff Oslick]

It isn't an internet legend. I know someone, personally, who was pestered repeatedly just a few years ago, even though they clearly lived out of state but frequently used their plane to travel to CA for short business trips. The county assessor made note of it and it fell up the chain to BOE. The assessors don't monitor ATC, they make a note of N-numbers on the ramp and if the same plane keeps appearing, they note that.

I'm not talking about a typical transient visitor, I'm talking about out of state folks who need to make frequent trips to CA. If you push that 6-month number, you need to be prepared to prove that the plane is really based outside the state (i.e, tiedown or hangar fee bills, fuel records). Trust me, I wish it weren't so.

 

[Kristin]

It may very between counties too, but if that kind of aggressive behavior was widespread, AOPA would have been screaming about it by now. I know that my county assessor is not hanging out at the airport. I am chair of the local airport commission and would know if this was common. I believe that the extent of it is that the airport manager reports every year as to which aircraft are based on the field.

 

[LoneAspen]

Just curious...is it illegal to cover up your registration number on the plane, when it's parked and not operating?

It probably is, but I'm just curious.

 

[Everskyward]

I'm not talking about a typical transient visitor, I'm talking about out of state folks who need to make frequent trips to CA. If you push that 6-month number, you need to be prepared to prove that the plane is really based outside the state (i.e, tiedown or hangar fee bills, fuel records). Trust me, I wish it weren't so.

At least we're getting down to the reality that you need to be pushing the six-month number. Warnings in other threads made it sound like transient visitors would be taxed, or at least questioned.

Just curious...is it illegal to cover up your registration number on the plane, when it's parked and not operating?

It probably is, but I'm just curious.

I don't think it's illegal if you are not flying it, but what are you going to cover them with? And don't you think that would just serve to raise suspicion?

 

[Palmpilot]

Do airplane covers ever cover the registration number?