TX Fly Away Tax Exemption

[PilotRPI]

Anyone here bought a plane in Texas but moved it out of state and filled out a fly away exemption? Working on a deal now and seller wants to use 1+PVC there, but I'm doubting that will work on non FAA paperwork. Calling the comptroller tomorrow too.

 

[Plano Pilot]

I was part of one the end of October. Flew the plane to KTXK, that is in Arkansas, and the new owner took possession of the plane there. I was told Oklahoma was a popular state to do this, but they changed the minimum sale price to be eligible. Lawer's took care of the paperwork. PM if I can help with anything.

 

[SCCutler]

Don't forget that you may also be eligible for the Occasional Sale exemption, as long as (1) neither the buyer nor seller has a Texas Sales Tax permit, and (2) the Seller is not in the business of selling aircraft.

For this one, you *must* get the Form 01-917, Statement of Occasional Sale signed by the Seller, and keep it for if/when it is needed (you do not file it automatically). https://comptroller.texas.gov/forms/01-917.pdf

Good summary of the Texas Sales & Use Tax for aircraft, with specific exemptions explained and links to applicable forms. https://comptroller.texas.gov/taxes/publications/94-168.php

BE SURE YOU DOCUMENT THE FACTUAL BASES FOR AN EXEMPTION! The Comptroller's people tend to be a little "Ready, Fire, Aim" on the process, but will respond well to proper documentation.

 

[codeeno]

I made my purchase in TX, without any tax. Thought I had researched Colorado, but, missed it. No notice or anything until two years later and Colorado hit me with a tax and penalty for my ignorance and them not sending any notification the first year. I'd suggest you check your state thoroughly and ask/hire a CPA for a professional recommendation/advice.

Dean

 

[bonefishpete]

Don’t you generally have to pay sales tax in the state of residency? Or where the plane will be permanently based?

 

[flyingron]

Don’t you generally have to pay sales tax in the state of residency? Or where the plane will be permanently based?

The Texas fly away exemption allows you to avoid the sales tax if you buy a plane in Texas and take it away and register it somewhere else. Of course, you'll have to see whatever the destination state sales/use tax laws are. '

The one dollar + OVC dodge doesn't do anything in any state I've been in. If you don't declare a sales price that makes sense to them, they'll just impute a blue book value to you.