MO aircraft tax/policy

cowman

cowman

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I'm wondering if anyone knows this... I currently live and and keep my aircraft in IL. If I relocated the plane to a MO airport and continued to be an IL resident with my registration address in IL is MO likely to hit me up for any use tax fees? I know they have personal property tax but I don't know how that works in practice. All my MO friends tell me the actual amounts assesssed on their cars every year are negligible... but I don't know a MO resident who owns a plane.
 
@cowman - Some quick info at:

FAQs - Aircraft

The Missouri Department of Revenue administers Missouri's business tax laws, and collects sales and use tax, employer withholding, motor fuel tax, cigarette tax, financial institutions tax, corporation income tax, and corporation franchise tax.
dor.mo.gov dor.mo.gov
 
Is the use tax one off or annually?

I think basically you need to calculate which residence is home to the airplane by the most number of days per year. Some states probably have some 30 day rule to not allow people to have multiple homes and basically double taxation and so forth.

You can check aopa’s website but the data is always changing so you’d need to reconfirm the information you find is up to date.
 
I’m more worried about the personal property tax which in MO is a yearly thing on vehicles. Not familiar with it.

Also I’m talking about permanently moving the plane to a MO airport while remaining an IL resident. It wouldn’t be a part time thing- I live close to the border. The deal is the MO airport has cheaper fuel and possibly a better hangar setup for me. But if I have to start paying personal property tax it might offset those advantages.
 
cowman said:
I’m more worried about the personal property tax which in MO is a yearly thing on vehicles. Not familiar with it.

Also I’m talking about permanently moving the plane to a MO airport while remaining an IL resident. It wouldn’t be a part time thing- I live close to the border. The deal is the MO airport has cheaper fuel and possibly a better hangar setup for me. But if I have to start paying personal property tax it might offset those advantages.
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Ah, well, if the plane spends more than 14 days in IL in any year for not maintenance, you will owe a use tax. Ask me how I know.
 
Emailing the Missouri DOT would surely answer the OP’s question.

Their FAQs linked in post #2 unfortunately address only the opposite situation, but it’s clear that they will give a written answer to a similar question:

Whether or not consumer’s use tax is due to the state of Missouri depends on the facts and circumstances. To determine if you owe the tax, we suggest you request a letter ruling from the Department​
 
As far as the personal property tax, when I had a plane (hangared in MO & I lived in MO), I was taxed based on the rates where I lived.

So maybe you'll pay PP tax to IL?

Call the MO department of revenue to find out for sure.
 
I've been out of MO for quite a while, but the personal property tax on about a $20k car was $200-300/yr 15 years ago.

There are a lot of MO residents at KCPS who enjoy not paying personal property tax to MO on their airplanes.
 
The PP tax is based upon the county’s rate where the airplane is hangared. I researched this thoroughly and have been an aircraft owner in MO for 5 years.

At the end of the day, at least for my 56 year old aircraft, the PP tax for the airplane is really peanuts. It’s less than $200 / year. My boat PP tax is over 15x that.
 
kep5niner said:
At the end of the day, at least for my 56 year old aircraft, the PP tax for the airplane is really peanuts. It’s less than $200 / year. My boat PP tax is over 15x that.
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Is the MO county PP tax on the aircraft a percentage of its “Value” (however that is determined which would be its own question) and if so what is that percentage? Or is it a fixed tax or based on MTOW or something along those lines?

In VA the PP tax in one particular county is 3.7% of assessed value of automobiles (And boats and trailers) but does not apply to aircraft. There is however the initial one-time sales (Or use) tax of aircraft at the State level although credit is given for sales (or use) tax already paid to another State. The VA State implies that aircraft PP tax is possible and advises to check with the appropriate county.

In PA there is no PP tax nor any other tax that mirrors or comes close to it whether on aircraft, automobiles, boats or trailers. PA does impose the one time sales tax on the purchase of such.
 
It’s similar to real estate taxes, in that it’s the county’s tax rate (anywhere from 4%-9%) applied to 1/3 of the assessed value. For real estate and other PP tax, that assessed value is relatively straight-forward in figuring. IE. for cars / trucks, they literally use NADA values. For aircraft, as you can imagine, it runs the gamut. The county assessor doesn’t use anything like Vref for values - they don’t ask for TT, engine TBOH, or have any idea what avionics are in my 310. Honestly, the value they applied the tax rate for my aircraft was less than $3k! I have no idea how that number was derived, but if it reduces my tax exposure, I don’t ask any more questions.

There is a use tax in MO. It’s a one-time tax upon purchase, and could be compared to sales tax. It’s based upon the purchase price of the aircraft, and again is county specific. The long and the short of it, is the state knows where your aircraft is hangared (reported by the airport), knows how much you paid for it, and will get their pound of flesh. But when all is said and done, MO is rather reasonable when it comes to PP tax on aircraft. There is much history to that dating back to floods of 1996 that I inacted laws that made aircraft ownership and tax environment more favorable in MO, but is beyond the scope of this response.
 
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