First purchase, need help with paperwork

Don Shaffer

Don Shaffer

Filing Flight Plan
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Don
Hey there all, this is my first post to this forum. It was recommended by a friend when I asked him this question. I'm hoping this is the correct place for this post.

I'm purchasing my first aircraft. I've downloaded three forms that I believe are all that I need to follow this through.
I have a conditional purchase agreement which I'll bring when / if I make an offer and the seller accepts so that it can go out for a pre-buy inspection.
I have the FAA Registration application. I'm not sure when this gets filled out and if there is a fee that should be sent it along with it and the bill of sale.
Finally, the bill of sale.

Do I send the registration application and the bill of sale in together? With a fee? How many copies?

When can I fly it home? I'm under the impression that once I fill out the registration application and carry that and the bill of sale then I'm legal?

When and in what state do I send the sales tax to? I don't want to pay in the state I bought it and here in Jersey.

Thanks for all and any advise you can give me.

Don
 
The forms have instructions if you got the originals. You can fly away as soon as the bill of sale it done. You send the bill of sale and registration both to the FAA with the $5.00 fee. Read really close when you fill it out. There is a spot where you sign and print that most people miss. If it is not perfect FAA will send it back. You can google FAA registration and bill of sale example. Most people put $1.00&OVC for the price.
 
Most States have registration fees(like WI) you pay sales tax in the State it will be registered and based. WI it's the same 5 or 5.5% sales tax, then about $78 every two years. Research on your State DOT site.

Then give some consideration to insurance. There are several levels of coverage, 'full' on down.
 
Note, that if you are financing it, you almost certainly must use an escrow service (either AOPAs or one through a local bank). There's a chicken and egg case typically otherwise (the lender won't give the funds without the bill of sale and the seller won't sign the bill of sale without the funds). Note you may wish also to get a title search to assure you're getting legal ownership.

You can use a PDF of the bill of sale form. It's only the registration that needs to be on the multipart form (and the pink copy is your temporary registration that allows you to fly it away).

New Jersey exempts sales tax. I missed where you stated which state you were purchasing the plane in. Their rules will also apply. Many states exempt casual sales but you need to check the specifics.

Info on NJ rules here: http://www.state.nj.us/transportation/airwater/aviation/faqs.shtm
 
Don Shaffer said:
Hey there all, this is my first post to this forum. It was recommended by a friend when I asked him this question. I'm hoping this is the correct place for this post.

I'm purchasing my first aircraft. I've downloaded three forms that I believe are all that I need to follow this through.
I have a conditional purchase agreement which I'll bring when / if I make an offer and the seller accepts so that it can go out for a pre-buy inspection.
I have the FAA Registration application. I'm not sure when this gets filled out and if there is a fee that should be sent it along with it and the bill of sale.
Finally, the bill of sale.

Do I send the registration application and the bill of sale in together? With a fee? How many copies?

When can I fly it home? I'm under the impression that once I fill out the registration application and carry that and the bill of sale then I'm legal?

When and in what state do I send the sales tax to? I don't want to pay in the state I bought it and here in Jersey.

Thanks for all and any advise you can give me.

Don
Click to expand...

Hi Don,

The registration must be the carbon triplicate form. You can't download one of those from the internet and use it. There are three pieces. Pink goes with the buyer (ends up being the temp registration until you get the perm one), there's a yellow and a white. I believe the white goes to the seller, yellow goes to FAA, but it says so on the sheet.

The Bill of Sale can be printed from the web and needs to be signed. Purchase agreement obviously needs to be signed if you have one.

After those are done, you can fly the plane away and it's basically yours. The FAA needs a copy of the Bill of Sale and the registration.

You pay the sales tax for your home state, where the plane is going to permanently live. If you're buying from a broker, they are usually required to collect tax at the time of sale and then they pay it. If you are buying privately you are on the hook for it. Check your state laws to confirm though, that's the case here in FL.

But yeah, basically you need a pink registration in the plane and the bill of sale. Oh yeah, also don't forget to get the thing insured before you go anywhere with it. Takes no more than 30-45 minutes depending on the company. You can get an email proof of insurance before you leave the ground. Can't even tell you how many stories I've read where someone's bought a plane and crashed it on the way home or something stupid like that without insurance.

I bought my first plane last year and sold it this year, so I've got most of the stuff in my head from that sale. Message me (conversation) if you need any help. And..congrats! Pictures please :)
 
Thanks! I'm pretty sure I have what I need but hints on the printing and signing is what I need to know. Also the $5.00 fee.
I have a renters policy that I put in place a couple of months ago so I'm hoping to roll that over into an owners policy in an effort to save some of the premium I paid.

I'll have a look at the Jersey DOT site to try and figure out when and where I pay their tax.
 
Caramon13 said:
Hi Don,

The registration must be the carbon triplicate form. You can't download one of those from the internet and use it. There are three pieces. Pink goes with the buyer (ends up being the temp registration until you get the perm one), there's a yellow and a white. I believe the white goes to the seller, yellow goes to FAA, but it says so on the sheet.

The Bill of Sale can be printed from the web and needs to be signed. Purchase agreement obviously needs to be signed if you have one.

After those are done, you can fly the plane away and it's basically yours. The FAA needs a copy of the Bill of Sale and the registration.

You pay the sales tax for your home state, where the plane is going to permanently live. If you're buying from a broker, they are usually required to collect tax at the time of sale and then they pay it. If you are buying privately you are on the hook for it. Check your state laws to confirm though, that's the case here in FL.

But yeah, basically you need a pink registration in the plane and the bill of sale. Oh yeah, also don't forget to get the thing insured before you go anywhere with it. Takes no more than 30-45 minutes depending on the company. You can get an email proof of insurance before you leave the ground. Can't even tell you how many stories I've read where someone's bought a plane and crashed it on the way home or something stupid like that without insurance.

I bought my first plane last year and sold it this year, so I've got most of the stuff in my head from that sale. Message me (conversation) if you need any help. And..congrats! Pictures please :)
Click to expand...


Where can I get this form and why would they put it on their site if you can't use it I wonder?
 
Don Shaffer said:
Where can I get this form and why would they put it on their site if you can't use it I wonder?
Click to expand...

You can get it from the FSDO. OR if you are lucky (like I was) you can visit a broker at your airport where they do sales a lot and ask them for one.
 
The FAA forms on line no longer say they must be original forms and even provide instructions for electronic signatures if you have that capability.
 
Stewartb said:
The FAA forms on line no longer say they must be original forms and even provide instructions for electronic signatures if you have that capability.
Click to expand...

Yep, looks like that changed recently. They will accept an ink signature or electronic:

Type or print all required information in the appropriate block/space. Except for signatures, all data should be typewritten or printed. Signatures that are not digital must be in ink. The name of the applicant should be identical to the name of the purchaser shown on the applicant’s evidence of ownership.

SIGNATURE: If applying a digital signature that shows the printed name, to accommodate the space required by the digital signature, you may apply that signature into the space of the signature box AND the typed/printed name box combined.

Man that'll make things easier!
 
I'm also finding out that I may not have to pay a use tax since this sale is between two individuals and on neither end is there an for profit mechanism.
 
Welcome and Congrats on your new baby. Pictures would be great!
 
Don Shaffer said:
I'm also finding out that I may not have to pay a use tax since this sale is between two individuals and on neither end is there an for profit mechanism.
Click to expand...

I would find that very hard to believe. Doesn't matter who does the transaction in many cases, the state wants their piece of the pie. If I bought a plane in NJ and moved it here to FL, I would pay FL use tax when it arrived in state. For me, that's about 6.5%.

Unless you are an air carrier operation I would highly doubt you are exempt from state use tax. But hey..stranger things have happened.

Nice looking plane btw :)
 
In Louisiana there wasn't any sales tax as long as I was purchasing from an individual. No use tax either: "Antique airplanes are not subject to tax. The antique airplane must be maintained by a private collector and not used for commercial purposes. The term "antique airplane" is defined by Louisiana Revised Statute 47:6001 for purposes of the exemption as an airplane manufactured at least 25 years ago."
 
Be sure the prebuy checks the wing spars for corrosion !!!!!. There is a service bulletin for this and it is horribly expensive to repair. I think it is SB 1006. Someone please correct me if that is the wrong bulletin number.
 
I've been sent all of the AD compliance records and the shop that worked on this when it was first transported to the new owner did around $15k worth of repairs and AD compliance work. Reading through the records, this shop left nothing to chance but that detail cam at a cost to the current owner. Corrosion was an issue and that really cost this guy a lot of money but it seems that it was all confronted, repaired, replaced, and treated. Florida planes can be a bear. I'm interested in this thing more on the level of detail of the work performed buy the repair facility than for almost any other reason. I've looked at a lot of pretty birds but they all need this degree of work done at some point.

"Casual Sale"
 

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Am I to understand the plane is in Massachusetts? Then you don't have to worry about either state sales tax wise.
 
Don Shaffer said:
I've been sent all of the AD compliance records and the shop that worked on this when it was first transported to the new owner did around $15k worth of repairs and AD compliance work. Reading through the records, this shop left nothing to chance but that detail cam at a cost to the current owner. Corrosion was an issue and that really cost this guy a lot of money but it seems that it was all confronted, repaired, replaced, and treated. Florida planes can be a bear. I'm interested in this thing more on the level of detail of the work performed buy the repair facility than for almost any other reason. I've looked at a lot of pretty birds but they all need this degree of work done at some point.

"Casual Sale"
Click to expand...

Nice! Kinda makes me wish I still lived up there..
 
Caramon13 said:
I would find that very hard to believe. Doesn't matter who does the transaction in many cases, the state wants their piece of the pie.
Click to expand...
A good number of states exclude sales tax when the sale is between private parties. That doesn't necessarily mean exemption of a buyer's use tax.
 
I bought an airplane here in Oklahoma a year ago and I didn't have to pay any taxes sales or otherwise. It was a private party transaction.
 
midlifeflyer said:
A good number of states exclude sales tax when the sale is between private parties. That doesn't necessarily mean exemption of a buyer's use tax.
Click to expand...

Right I thought the same thing, but the law for NJ is actually called "State and Use Tax". And..the language on their site makes it pretty clear about use tax exemption.
 
Ca nails you for 7.5%....

I hate CA, but the WX is nice.

Two people my dad and I both used whilst buying our planes this year:

Aero Title in OK City because they triple check the paperwork and actually walk it in to the FAA and ensure its correct and filed. (Well worth it for the less than 100 bucks it cost each of us)

And Bill White Insurance in Corona, Ca... They kicked Avemco and AOPA out of the water. Talk to Rose or Kim and tell 'em the Pinnell's sent you.

Http://www.insurancebwi.com


Sent from my iPhone using Tapatalk
 
Something that hasn't been mentioned yet, the "ink" needs to be blue instead of black. Apparently there are those in the plane buying bureaucracy who are scared to death of photocopies.
 
I carry a blue pen so I guess I got lucky! Thursday I head out to do my inspection. It's already at the shop that will do the pre buy inspection if I choose to go the final step in the process. If all goes well I'll be picking it up on the 19th
 
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