Which States have high Aircraft Property and Sales taxes?

Aircraft used to be exempt from property tax in Kansas , not sure if they still are or not.

sj

NYS has no tax, no user fees or cost of any kind on aircraft ownership. For a small yearly fee I will register all your cool bushplanes in my name saving you all big bucks ;-)

Glenn

Be careful about claiming a residence to reduce insurance rates. Make sure that somewhere in your policy there are words that let you live in texas and operate in Alaska seven months out of the year. Insurance companies have been known to say "hey, you lied to us about . . ." and your insurance is void. Here are your premiums back. Ouch.

I have heard that Alaska premiums are sky high. Seaplanes are bad enough in the lower 48.

Michigan has 6% sales/use tax. Not sure if it applies when you move here or not, they use the use tax when you make a purchase for less than fair market value. Michigan requires a detailed description of condition and equipment on a bill of sale (FAA bill of sale does not meet the requirement) or they will establish the value of the purchase. After that the state requires the aircraft to be registered with them yearly at a penny a pound of gross weight so my 170B cost $22. The fact that it is registered makes it illegal for the state or any other governmental entity to tax the aircraft as personal property. Alex, I doubt that you would find the weather here enough of an improvement to make it worth moving to Michigan for the winter.

Tim

Minnesota charges sales tax plus registration. If you pay sales tax in another state, you have to show proof of the tax paid, and then you still have to pay the difference if the tax rate you paid was lower than the Minnesota rate.

In my case, I made sure to document the price of each item that came with my airplane (floats, skis, seaplane prop) as those components are tax-exempt in Minnesota. By itemizing them in my documentation I was able to show that the airplane itself was lesser in price (opposed to the whole package) and reduced my tax liability that way.

There is a provision for vintage/antique registration that my Cub is eligible for. It’s a one-time fee, $25 I think.

Parts, modifications, maintenance are tax-exempt in Minnesota since 2013.

Aircraft dealers in Minnesota do submit a form to MNDoT with each aircraft sale, but it is the responsibility of the purchaser to register the aircraft and pay any sales tax. Some buyers may not need to pay tax depending upon where the aircraft seller is based and where the buyer is based, dependent upon your state having a flyaway provision.

Taxes are almost as fun as that time I paid my university all of my summer income back for ‘internship credits.’

—Amy


Sent from my iPhone using Tapatalk

In MD you have sales tax to pay. When I lived in WV, they wanted 8% personal property tax each year. Not sure if they still have that.


Sent from my iPad using Tapatalk

dgapilot said:

In MD you have sales tax to pay. When I lived in WV, they wanted 8% personal property tax each year. Not sure if they still have that.

Click to expand...

How many W. Virginia plane owners register their planes in Delaware? I would.

When I had the Howard, it was owned by a DE Corp. They would go by the airplane listed on the hangar lease. I have a Champ in pieces, so that’s what was listed on the hangar lease.


Sent from my iPad using Tapatalk

Anyone care to comment on Tennessee - I understand it’s both tax and seaplane friendly...


Sent from my iPhone using SuperCub.Org

My wife just confirmed we will not be moving to Washington.

I have a couple pages of info on a few states. 1. 2nd Amendment friendly ?, How do they vote?, Aircraft owner friendly?, How is the tax structure for a limited income? Washington state was pulled out of consideration.

Got grandkids yet? When you do? Grandma will want to live near them. Tax consequences aren't important. Neither are you. Just sayin'.

My perspective as a life long Alaskan? I like Texas. I have no interest in having an airplane in Texas. I've been spoiled by Alaska. Maybe that would change if I left Alaska for good, but I don't see that happening. Summertime in TX versus AK? Nope.

Texas doesn't charge any state registration fees or annual prperty/use tax. No sales tax on aicraft purchase unless you buy from a Texas dealer who makes aicraft sales their profit business (think Van Bortell Aircraft in Arlington, TX). Person to person sales or even corporation sellers that are not professional aicraft brokers are tax free per the "occasional sale" clause referenced by Steve a few posts up. The only County in Texas that I know of that tries to charge annual property tax is El Paso, and even then only if the airplane is in an entity's name rather than a personal name. Then again fully-enclosed T-Hangars at El Paso Class C are $110 a month with electricity.

aktango58 said:

My wife just confirmed we will not be moving to Washington.

Click to expand...

One thing going for WA is no income tax.

Also, if you are a scratch builder, you only pay use/sales tax on materials, not on value. Airplanes and boats.

I got a kick out of walking into our county auditor's office with materials receipts and walking out with a boat registration based on the $1500 in materials.

But I'd agree, coming from AK with airplanes would sting.

Mid 60s all weekend here in Texas. Had 5 airplanes on the gravel bars last Sunday, more fun to be had this Sunday. The more I read here the more I like my choice. That will change mid June.

Montana is full, I hear North Dakota is nice.....

MTV

RVBottomly said:

One thing going for WA is no income tax.......

Click to expand...

Darn politicians keep trying to change that. :evil:

hotrod180 said:

Darn politicians keep trying to change that. :evil:

Click to expand...

Ya but those gas prices :roll: more than make up for it.

stewartb said:

Got grandkids yet? When you do? Grandma will want to live near them. Tax consequences aren't important. Neither are you. Just sayin'.

My perspective as a life long Alaskan? I like Texas. I have no interest in having an airplane in Texas. I've been spoiled by Alaska. Maybe that would change if I left Alaska for good, but I don't see that happening. Summertime in TX versus AK? Nope.

Click to expand...

Helicopter for shooting pigs!!

Montana is full, I hear North Dakota is nice.....

MTV

Click to expand...

Your current residence area around Bozeman certainly is full. Over a 100,000 in that county now.

Alex Clark said:

Your current residence area around Bozeman certainly is full. Over a 100,000 in that county now.

Click to expand...

But, who's counting? The number of craft breweries is also going exponential.....not necessarily a bad thing.

Home prices are getting scary fast. Got here in the nick of time.

MTV