Personal Property Tax On Airplanes

ggroves

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Pilots @ KHEF (Manassas, VA) are currently paying $0.01 on the $100 in aircraft personal property taxes? Seems like a token amount. Two counties west in Winchester I've been paying $0.425 on the $100 for several years. Perhaps I should send my tax bill to AOPA with a letter of complaint. What do property taxes on airplanes run for you folks?

Greg
182RG

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[font=ARIAL,HELVETICA]AOPA teaming with local pilots to oppose tax increase at Virginia airport[/font]

The City of Manassas is considering increasing its tax rate on aircraft based at Manassas Regional Airport by approximately 3,000 percent — an increase that AOPA believes would wrongfully single out aircraft from other types of personal property and negatively impact local pilots and the surrounding business community.

In a letter to city officials, AOPA urged the city to not change its current formula for taxing aircraft at the airport. The city's existing personal property tax on aircraft is 1 cent per $100 of assessed value. During budget deliberations, the city discussed increasing it to as much as 30 cents per $100. More than 300 individuals base their aircraft at the city-owned and -operated airport.

AOPA also underscored the importance of the airport to the growing community.

"The Manassas Regional Airport has become perhaps one of the community's most valuable economic assets," said Roger Cohen, AOPA vice president of regional affairs. "Increasing the existing tax rate by 3,000 percent sends a negative message to the local pilots, the business community which has chosen to base airplanes at Manassas, and to aviation users nationwide."

The airport also has received federal grants through the Airport Improvement Program, so AOPA advised the city to research and comply with federal rules regarding the use of revenues collected at public-use airports.

[font=Arial,Helvetica,sans-serif][size=-2]April 20, 2005[/size][/font]
 
$0 per year in Orange County, Florida.

I have had airplanes based in three counties in Florida and two in Tennessee and have never had to pay a property tax.
 
None in Texas. And none in Ohio.

Is it really that high at OKV, Greg? Wow. Somewhere I read something that indicated Winchester to be lower than a lot of places in Virginia. Guess not.

What's the rate up at Martinsburg? Might be worth the ride.
 
wsuffa said:
Is it really that high at OKV, Greg?

Bill,

Unfortunately...yes. It used to be $0 several years ago. Rumor has it that the airport manager, facing a budget deficit, sent a list of all resident airplanes to the county wanting to know why tax revenue wasn't being collected to fund airport operations. Same airport manager who removed all water sources from the field, and charges $3.40 "discounted" for 100LL. Note that the FBO @ OKV is owned by the local govt. I'm starting to shop around for cheaper fuel when possible.

wsuffa said:
What's the rate up at Martinsburg? Might be worth the ride.

I don't think that W. Va. has a personal property tax on aircraft. However, it is 35 min. vs. 5 min. to OKV.

Greg
182RG
 
In Maryland, it's 5% of the aircraft value when you first register it with a Maryland address -- one time only, unless it's sold to a new owner. Just got the bill on the Cheeger...
 
Ron Levy said:
In Maryland, it's 5% of the aircraft value when you first register it with a Maryland address -- one time only, unless it's sold to a new owner. Just got the bill on the Cheeger...
Who decides what the value is?
 
We don't have a property tax on airplanes in Ohio. We do have to pay sales tax on the purchase price. In my case it was 6.5%. You can cheat and not pay, but they will catch you. It took them two years to catch up with me on the last plane I owned. On my current plane I just sent them a check!
 
Ken Ibold said:
Who decides what the value is?

What Ron described in MD sounds more like a Sales Tax, where a Personal Property Tax is a Use Tax and is levied annually as long as you own the asset. I know CA has one.

In PA, for the 6% Sales Tax I paid on the Tiger, the PA Dept of Revenue wanted a copy of the sales agreement. They then compare the value (sales price) on the contract with something like a Blue Book value. If you can't prove that the price you paid was "reasonable" according to them, they will charge you on the value THEY think the plane is worth.
 
AdamZ said:
Nothing in Pennsylvaina. I think Ct. charges a high pp tax

According to the Minnesota State Statues, aircraft are subject to a tax of one percent of value, said value being the manufacturer's list price depreciated 10% the first year and 15% each subsequent year. Apparently this doesn't apply to airline owned planes but strangely it does apply to any aircraft at an airport or flying over Minnesota more than 60 days per year (flying or parked for any part of a day is treated as a whole day). I can't imagine how they would ever collect on that last part, but if they did, anyone who regularly flew from North Dakota to Wisconsin, for example, would have to pay the tax if they crossed more than 59 times.

The taxes on my Baron run $169/year. The Porterfield gets a break for being an antique so the tax on it is only $25/year. Theoretically that break only exisits if it's not flown for any commercial purposes.
 
ggroves said:
Bill,

Unfortunately...yes. It used to be $0 several years ago. Rumor has it that the airport manager, facing a budget deficit, sent a list of all resident airplanes to the county wanting to know why tax revenue wasn't being collected to fund airport operations. Same airport manager who removed all water sources from the field, and charges $3.40 "discounted" for 100LL. Note that the FBO @ OKV is owned by the local govt. I'm starting to shop around for cheaper fuel when possible.

Don't get me started on the management at OKV. Last few times I went into HEF or MRB because of the rental car issue.

And they wonder why avgas sales are down....

I don't think that W. Va. has a personal property tax on aircraft. However, it is 35 min. vs. 5 min. to OKV.

Greg
182RG

Takes me 20 minutes to get to SSF from home. But I can see how you're spoiled :)
 
I just got a letter from Massacusetts Aeronatics Commission requesting $165 in annual registration and demanding I pay in a timely manner. (I bought '47H 11 months ago.) These are the same guys who require pilots to have a MAC id. I've been waiting 11 months for the owners MAC id.
Timely? Yeah, right. Only when collecting money!
 
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