Washington State Fly-away rule

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lfguard10

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lfguard10
I’ve been researching and can’t find an exact answer. If I purchase an airplane from a private party in Washington state and immediately fly to Virginia with it, am I responsible for a sales tax in Washington state? I’m unable to find if Washington state has a “fly away rule”. It’s not very clear wording.

Would I pay taxes in Washington AND Virginia?

AOPA states Washington has a “casual sale yard sale rule”, but what exactly does that mean?

Further, if I were to have it ferried to Virginia by the seller, I would technically take possession in Virginia, correct?
 
I’m reading about a “use tax” in WA, but I believe that would only apply to WA residents who bring items into their own state. You’re saying I could take possession in WA and come to VA and pay my taxes here?
 
Young grasshopper, look into this and read between the lines, it'll save you thousands
 
To the best of my knowledge, there isn't a specific rule like you are looking for except for the Boeing commercial airplane exception. You can also check Washington' DOT page on registration but I think it just refers you back to the WAC. My understanding is that Washington is not like California that may chase you across state lines. It took them over a year to catch up with me when I bought out of state and brought it into the state. Washington does check the FAA registery on some periodic basis.
 
In 2013 I bought a plane near Seattle and flew it back to Manassas, VA where I lived at the time. I did not have to pay any sales tax in Washington State. I did pay sales tax in Virginia when i registered the plane there. In 2014, I decided there was better back country flying in Washington State, so I sold my home in Virginia and moved to Western Washington. When I relocated the plane to Washington State I had to pay the difference between the sales tax in Virginia and the sales tax in Washington because I had owned the plane for less than 3 years. No muss, no fuss. The sales tax is higher in Washington State, but there is no income tax and I come out ahead as a result. The grass airstrips up in the Cascade Mountains, and ready access to the wilderness airports in Idaho were worth the cost of the move.
 
lfguard10 said:
I’ve been researching and can’t find an exact answer. If I purchase an airplane from a private party in Washington state and immediately fly to Virginia with it, am I responsible for a sales tax in Washington state? I’m unable to find if Washington state has a “fly away rule”. It’s not very clear wording.

Would I pay taxes in Washington AND Virginia?

AOPA states Washington has a “casual sale yard sale rule”, but what exactly does that mean?

Further, if I were to have it ferried to Virginia by the seller, I would technically take possession in Virginia, correct?
Click to expand...

No, the seller pays here not the buyer, you are free :)

now deal with Va.
 
Flyhound said:
In 2013 I bought a plane near Seattle and flew it back to Manassas, VA where I lived at the time. I did not have to pay any sales tax in Washington State. I did pay sales tax in Virginia when i registered the plane there. In 2014, I decided there was better back country flying in Washington State, so I sold my home in Virginia and moved to Western Washington. When I relocated the plane to Washington State I had to pay the difference between the sales tax in Virginia and the sales tax in Washington because I had owned the plane for less than 3 years. No muss, no fuss. The sales tax is higher in Washington State, but there is no income tax and I come out ahead as a result. The grass airstrips up in the Cascade Mountains, and ready access to the wilderness airports in Idaho were worth the cost of the move.
Click to expand...
Shuss,, don't be saying stuff like that, we have enough immigrants already.
 
Further, Virginia will credit you any tax you pay in the another state.

Note, that conversely, Virginia will not charge you the sales tax if you move the plane out of the state within 60 days of purchase.
 
If you buy it and immediately fly it to your home state, and abide by your states laws, Washington can go hang, how are they gonna compel you to pay? Californistan tried to take income tax out of my military retired pay after I (a non-resident of that state) left, far as I know, they're still waiting.
 
A common misconception. Sales tax will be due if you reside in that state. Use tax is applied by a state you are relocating the item to.
 
Consult a tax lawyer, but I'll tell you my experience:

I had to do something like this when I bought my Cherokee. Owner lived in Alabama. He sold it to me here in FL. Because it was a FL transaction I had to pay state tax on the transaction within X amount of days of storing it here in FL. Normally the broker takes care of that, but I did it. FL state tax is 6% and my county (where the airplane will be stored) is another .5% tax. There is no use tax applicable because I paid state tax and it's being stored here.

Now if I had bought it in Alabama, I'd have to pay sales tax there AND..I'd have to pay the difference (plus any additional stuff) when I brought it to FL. So for example if Alabama tax was 4.5% and FL state tax was 6.5% (6% state plus my county .5%) I'd have to pay the 4.5% state tax for Alabama and when I brought it here, an additional 2.5% use tax since I'd have a credit to tax paid in another state.

Use tax is only applicable when you don't pay sales tax. So in the example above where I would bought the plane in Alabama, I'd have to pay 4.5% STATE tax there and I'd get a credit towards my USE tax in FL. I don't pay state tax in both places..state tax is only paid where the airplane is bought.

The broker usually takes care of all this, but if you do a private sale..you are on the hook for all the paperwork.

Those are my thoughts...
 
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Thanks everyone for the response.

I forgot to provide an update incase someone has the same question later on. I spoke to Washington Dept. of Revenue AND Virginia Dept of Taxation.....both entities state as long as I was immediately flying back to Virginia after taking delivery, I wouldn’t be responsible for a tax in Washington. Similar to what Michipilot said, Virginia will not charge a “sales tax”, but they charge a use tax. It's the same rate as VA's the sales tax.
 
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HI - I'm importing a GA airplane from Brazil. It will first touch down in Florida where FAA will inspect it. Then it will fly to MN and sit for 5 weeks for Avionics work. Then it will be flown to Washinton State where it will be based. Does it matter in which state I pay the sales tax?
 
Here's the poop on Florida: https://floridarevenue.com/Forms_library/current/gt800008.pdf
You have 20 days to get it out of Florida before being subject to their sales tax (6%).
Minnesnota doesn't levy a tax on planes transiently there such as your case.

Once you have the plane home in Washington State, you owe the 6.5% state (plus additional local) use tax there as well as a fee (up to $65 based on how much of the year is left) for registration. Part of this also includes a state excise tax that applies.
You have 30 days to do so.
 
flyingron said:
Here's the poop on Florida: https://floridarevenue.com/Forms_library/current/gt800008.pdf
You have 20 days to get it out of Florida before being subject to their sales tax (6%).
Minnesnota doesn't levy a tax on planes transiently there such as your case.

Once you have the plane home in Washington State, you owe the 6.5% state (plus additional local) use tax there as well as a fee (up to $65 based on how much of the year is left) for registration. Part of this also includes a state excise tax that applies.
You have 30 days to do so.
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Thanks. I thought it might be 9.5% based on the state of Wash + county and other local taxes like going to a restaurant.
 
Yes. It's 6.5% + local which can be up to 3.1%. On single-engine planes, there's an annual $50 excise tax that's bundled into the $65 registration fee.
 
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