State/County taxes on aircraft

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I'm looking at taking a job in a new state. I currently pay less than $100 per year registration fee and that's it. If I move to this new city (The tax is actually the county tax or so it reads), I will instantly gain a new $5250/year tax on my plane. It's a 10.5% property tax on aircraft. All other property and income taxes are similar but this state/county also has a 7.5% sales tax, which my current one does not. The new position is a better opportunity and pays about $16,000/year more than my current one. The salary difference isn't looking quite as good as it did, it's actually about a wash given the sales/property tax increase I'll be getting. I'm having real trouble moving to a state/county that feels the need to tax my plane and me at such a high rate. I have no qualms with skirting it if possible. If I were to "sell" my plane to my relatives but base it in this new state, could I skirt the tax? Lesson learned, check state taxes on aircraft before taking a new job in another state and also posting anon since nobody but my wife knows that we're moving :) I could opt to live in a nearby county where the rate is only 4% but, I'm spoiled.
 
Unregistered said:
I'm looking at taking a job in a new state. I currently pay less than $100 per year registration fee and that's it. If I move to this new city (The tax is actually the county tax or so it reads), I will instantly gain a new $5250/year tax on my plane. It's a 10.5% property tax on aircraft. All other property and income taxes are similar but this state/county also has a 7.5% sales tax, which my current one does not. The new position is a better opportunity and pays about $16,000/year more than my current one. The salary difference isn't looking quite as good as it did, it's actually about a wash given the sales/property tax increase I'll be getting. I'm having real trouble moving to a state/county that feels the need to tax my plane and me at such a high rate. I have no qualms with skirting it if possible. If I were to "sell" my plane to my relatives but base it in this new state, could I skirt the tax? Lesson learned, check state taxes on aircraft before taking a new job in another state and also posting anon since nobody but my wife knows that we're moving :) I could opt to live in a nearby county where the rate is only 4% but, I'm spoiled.
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Where do you live that it's less than $100?! Not in California I presume... ha.
 
Unregistered said:
I'm looking at taking a job in a new state. I currently pay less than $100 per year registration fee and that's it. If I move to this new city (The tax is actually the county tax or so it reads), I will instantly gain a new $5250/year tax on my plane. It's a 10.5% property tax on aircraft. All other property and income taxes are similar but this state/county also has a 7.5% sales tax, which my current one does not. The new position is a better opportunity and pays about $16,000/year more than my current one. The salary difference isn't looking quite as good as it did, it's actually about a wash given the sales/property tax increase I'll be getting. I'm having real trouble moving to a state/county that feels the need to tax my plane and me at such a high rate. I have no qualms with skirting it if possible. If I were to "sell" my plane to my relatives but base it in this new state, could I skirt the tax? Lesson learned, check state taxes on aircraft before taking a new job in another state and also posting anon since nobody but my wife knows that we're moving :) I could opt to live in a nearby county where the rate is only 4% but, I'm spoiled.
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10.5% is AMAZINGLY high for a personal property tax on an airplane. For a potential exposure of $5K, it would be worth consulting a tax attorney in your new state to be sure you're reading the regs correctly, and to find out how to avoid the tax if possible.
 
That is just NUTS. What is a $16K increase after Fed, State, and Local income tax? $9 - $10K? How about after the Personal Property Tax, and additional cost of auto registration? It is probably a wash or you are going backwards. Also, who is paying for your moving expenses? Transaction costs, taxes, and fees to sell your home, etc?

Stay put.
 
Are you sure that is a 10.5% property tax rate? That sounds more like a one-time use-tax rate, which, depending on the locale, you may not need to pay if you've owned the aircraft long enough.
 
Maybe a little obsolete but...

I see that SC has a 10.5% rate but you also multiply it by a "county rate" which might be a lot less than 1.
 

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I register my aircraft to a corporation in Deleware, and all I had to pay on it was sales tax. That's allowed me to skirt paying property taxes on it where I live since it's a business asset to a business in another state.

Whether or not my state would get angry if they found out is another matter (I don't even know if they charge taxes on planes here), but they haven't caught on in over 5 years.
 
What Jeff said -- no way a county has an annual tax of 10.5% on aircraft in this country. You need to check this further before you make any decisions.
 
iDon'tPayAirplaneTax said:
I register my aircraft to a corporation in Deleware, and all I had to pay on it was sales tax. That's allowed me to skirt paying property taxes on it where I live since it's a business asset to a business in another state.

Whether or not my state would get angry if they found out is another matter (I don't even know if they charge taxes on planes here), but they haven't caught on in over 5 years.
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Bad deal. If (most would say, "when") the affected state(s) discover the plane, they will assess all applicable taxes, plus interest, plus late-filing penalties. The whole notion of registering an asset in another state (usually, either Nevada or Delaware) to avoid taxation in home state is utter buncombe, designed principally to raise revenue for companies that offer the foreign-state registration and incorporation services.

"Not caught yet" is not the same thing as "not liable" - not at all!
 
SCCutler said:
Bad deal. If (most would say, "when") the affected state(s) discover the plane, they will assess all applicable taxes, plus interest, plus late-filing penalties. The whole notion of registering an asset in another state (usually, either Nevada or Delaware) to avoid taxation in home state is utter buncombe, designed principally to raise revenue for companies that offer the foreign-state registration and incorporation services.

"Not caught yet" is not the same thing as "not liable" - not at all!
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Good call, counselor. What are the current rates & rules for Texas? A web reference would be fine... This would be for privately or Co-owned GA aircraft. I understand in Texas there is a difference between buying from a dealer vs. private party "occasional" sale... But don't know if the occasional sale rule requires both seller and buyer to be Texas residents.
 
no property tax in kansas on planes more than 30 yrs old. no sales tax on airplane parts either.
 
Property tax is also deductible from income tax, so include that in your calculations before declaring it a wash.
 
TangoWhiskey said:
Good call, counselor. What are the current rates & rules for Texas? A web reference would be fine... This would be for privately or Co-owned GA aircraft. I understand in Texas there is a difference between buying from a dealer vs. private party "occasional" sale... But don't know if the occasional sale rule requires both seller and buyer to be Texas residents.
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"Occasional Sale" exemption from sales or use tax applies based upon neither buyer nor seller possessing a sales tax permit, and the seller making (iirc) no more than two sales within a one year period. Something like that, not at office with its copious resources.

Property tax charged on business property, so if not used as a business asset, no property tax.

As always, consult your legal and tax advisor, as this is not legal advice.
 
TMetzinger said:
10.5% is AMAZINGLY high for a personal property tax on an airplane. For a potential exposure of $5K, it would be worth consulting a tax attorney in your new state to be sure you're reading the regs correctly, and to find out how to avoid the tax if possible.
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Agree. Even under the worst "pilots are rich, soak the rich" attitude, I don't think I've seen anything that high. I don't even think the Italian taxes that Peter references are that high.

1-2% is more like it (but is still high) in states with punitive personal property taxes.

Would you be close enough to the state line to keep the plane physically out of state?

Note to thread readers: because this was posted anon, there were two posts that ended up in the moderation queue because they contained links. I've approved the posts - one can see the reference material posted. Note to anon posters: as a minor anti-spam measure, posts with links are moderated and require approval before they appear (same applies to new registered users until you reach a certain number of legit posts)
 
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OK, I looked it up.

Not like I like paying property taxes, but the 10.5% (and the other numbers on that map) are "Assessment Ratios," which are applied to the market value of the property being taxed, then *that* amount is in turn multiplied by the "Millage Rate" for the appropriate jurisdiction, which can and will vary quite a bit.

I played a f'rinstance on a $90,000.00 airplane in Charleston, came up with something like $1,230.00 per annum. Not chicken-feed, but quite the same thing as we were fretting about above.

http://www.sccounties.org/client_resources/services/research/propertytaxes/PropertyTaxPub.pdf
 
I've spent enough time in the CHS region to say the commute from Berkely County isn't that bad at all. Consider this: Base the aircraft at Moncks Corner and live to the north

Unless the job is on Daniel, James or Johns Island it's a workable commute. I'm going to take a wild guess and figure it's a job at Boeing or one of the many military contractors at the Weapons Station or old Navy Yard.

I've got a cousin who is a realtor out there as well, if you want a referral.
 
Virginia has a 4% personal property tax on airplanes, boats, cars, RVs, etc. There also is a one-time 2% airplane registration fee. Those of you in VA, how do they assess value? I am a little concerned because in a few years I'll be getting an aircraft from a relative, and depending on how the airplane is assessed, the 4% yearly tax will be ridiculously high.
 
bluee said:
Virginia has a 4% personal property tax on airplanes, boats, cars, RVs, etc. There also is a one-time 2% airplane registration fee. Those of you in VA, how do they assess value? I am a little concerned because in a few years I'll be getting an aircraft from a relative, and depending on how the airplane is assessed, the 4% yearly tax will be ridiculously high.
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The personal property tax (if any) in Virginia is assessed on a county-by-county basis. For many counties, the personal property tax is negilgible on airplanes (others have a significant rate). I'd need to go do some research on valuation, maybe Tim knows off the top of his head (my plane is hangared where the tax is negligible). There were a few posts on the DC Pilots list within the last 24 hours on tax matters.

There is a sales/use tax of 2% (it's not a registration fee) when you buy an airplane or bring an airplane in-state. The tax is waived if you have already paid a tax of the same or higher amount to another jurisdiction (I paid sales/use tax in Ohio which has a higher rate than Virginia so no tax was due).

Annual registration fees are negligible - under $50/year for a light plane.
 
wsuffa said:
The personal property tax (if any) in Virginia is assessed on a county-by-county basis. For many counties, the personal property tax is negilgible on airplanes (others have a significant rate). I'd need to go do some research on valuation, maybe Tim knows off the top of his head (my plane is hangared where the tax is negligible). There were a few posts on the DC Pilots list within the last 24 hours on tax matters.

There is a sales/use tax of 2% (it's not a registration fee) when you buy an airplane or bring an airplane in-state. The tax is waived if you have already paid a tax of the same or higher amount to another jurisdiction (I paid sales/use tax in Ohio which has a higher rate than Virginia so no tax was due).

Annual registration fees are negligible - under $50/year for a light plane.
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Is taxation in VA by owner's home address, or where the airplane is hangared?

Here's my home county, James City County, which lists 4%:
http://www.jccegov.com/treasurer/tax-rates-dates.html

Here's where I fly now, and where I am on a hangar waiting list, New Kent County, which lists 0.75%:
http://www.co.new-kent.va.us/comrev/tax_rates.php
 
I don't know, but I don't think it's a 4% yearly fee, or if it is, there are exemptions for smaller planes. When I hear owners complain, it's about county/municipality taxes, NOT state taxes.

Edit: It is based on where the AIRPLANE lives, not where the OWNER lives, at least up here in northern VA.

When the town of Leesburg was considering raising it's tax rate on airplanes, it was pointed out to them that the effect would be to send most of the based airplanes to Winchester, Manassas, or another airport, with a net REDUCTION in income.

PS - Bluee, change your avatar... you remind me of the folks who keep their lights up too long.:lol::lol::lol:

Just kidding!
 
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SCCutler said:
OK, I looked it up.

Not like I like paying property taxes, but the 10.5% (and the other numbers on that map) are "Assessment Ratios," which are applied to the market value of the property being taxed, then *that* amount is in turn multiplied by the "Millage Rate" for the appropriate jurisdiction, which can and will vary quite a bit.

I played a f'rinstance on a $90,000.00 airplane in Charleston, came up with something like $1,230.00 per annum. Not chicken-feed, but quite the same thing as we were fretting about above.

http://www.sccounties.org/client_resources/services/research/propertytaxes/PropertyTaxPub.pdf
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So 1.4% versus 10%.

They were only 10x off. ;)
 
bluee said:
Is taxation in VA by owner's home address, or where the airplane is hangared?

Here's my home county, James City County, which lists 4%:
http://www.jccegov.com/treasurer/tax-rates-dates.html

Here's where I fly now, and where I am on a hangar waiting list, New Kent County, which lists 0.75%:
http://www.co.new-kent.va.us/comrev/tax_rates.php
Click to expand...

TMetzinger said:
I don't know, but I don't think it's a 4% yearly fee, or if it is, there are exemptions for smaller planes. When I hear owners complain, it's about county/municipality taxes, NOT state taxes.

Edit: It is based on where the AIRPLANE lives, not where the OWNER lives, at least up here in northern VA.

When the town of Leesburg was considering raising it's tax rate on airplanes, it was pointed out to them that the effect would be to send most of the based airplanes to Winchester, Manassas, or another airport, with a net REDUCTION in income.

PS - Bluee, change your avatar... you remind me of the folks who keep their lights up too long.:lol::lol::lol:

Just kidding!
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As Tim notes, personal property tax is by where the plane is hangared (same with cars, by the way, it's where they're "garaged" or principally kept).

It's my understanding, subject to verification, that in Northern Virginia the highest rate on small planes is 0.6% in Winchester.

4% is quite high comparatively. That would be more than the sales tax each year. In Manassas, the rate is:
$0.00001 per $100 of assessed value

Can you leave the plane in New Kent and move just yourself to James City?
 
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wsuffa said:
As Tim notes, personal property tax is by where the plane is hangared (same with cars, by the way, it's where they're "garaged" or principally kept).

It's my understanding, subject to verification, that in Northern Virginia the highest rate on small planes is 0.6% in Winchester.

4% is quite high comparatively. That would be more than the sales tax each year. In Manassas, the rate is:
$0.00001 per $100 of assessed value

Can you leave the plane in New Kent and move just yourself to James City?
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I live in James City County now. I fly out of New Kent, and that's where I'm on a hangar waiting list. So the airplane will be hangared in New Kent (provided I eventually get a hangar, of course). If the tax rate is based on there the airplane lives, then there is no way I'd ever hangar the plane in James City county (ie, Williamsburg).

Thanks for the info! I was a little worried about the taxes. It's my father's airplane I'm talking about, and its estimated value is $150k-$200k. So 4% would be a significant chunk of money I don't want to pay.
 
TMetzinger said:
I don't know, but I don't think it's a 4% yearly fee, or if it is, there are exemptions for smaller planes. When I hear owners complain, it's about county/municipality taxes, NOT state taxes.

Edit: It is based on where the AIRPLANE lives, not where the OWNER lives, at least up here in northern VA.

When the town of Leesburg was considering raising it's tax rate on airplanes, it was pointed out to them that the effect would be to send most of the based airplanes to Winchester, Manassas, or another airport, with a net REDUCTION in income.

PS - Bluee, change your avatar... you remind me of the folks who keep their lights up too long.:lol::lol::lol:

Just kidding!
Click to expand...

Thanks for the info. I didn't know the taxes are based on where the airplane lives, not the owner.

I'll think about the avatar.
 
TMetzinger said:
Love it!... That's a good dog. I assume that was taken somewhere that actually had snow?
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Well, that dog died four years ago ( at 13.5 years old), so the photo is older than that.
 
bartmc said:
This doesn't make it so clear.

http://taxweb.charlestoncounty.org/Docs/Tax/Auditor/faqs.html#ppratios
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Nope. That's why we have guys like Spike around.

The practicing lawyers interpret the rules written by the lawyers who couldn't make the cut practicing, but were charismatic enough to get elected to public office. :)

And there's virtually nothing more poorly written than Tax Law.

Get really good at keeping your customers from paying by fighting against poorly written tax code, and you can afford both a P-51 and a Sea Fury, like the local Tax Attorney/pilot at KAPA. :)
 
TMetzinger said:
Aww rats. Got a new dog? Was it George Carlin who said "Life.... is a series of dogs."?
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I've had two old dogs and one rescue dog die in the past four years, and I have one remaining dog, who will be seven next week.
 

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