REFLECTOR:A TOUCHY SUBJECT!
Donald Royer
reflector@tvbf.org
Fri, 13 Jun 2003 12:41:59 -0600
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In Colorado, you will probably not have to pay any sales tax on your =
homebuilt. The State Revenue Department automatically picks up all new =
registrations, but what happens next is kind of murky. For example when =
I moved to Colorado ten years ago and reregisterd my plane, the state =
tried to collect sales tax on a Mooney that I had owned for years and =
for which I was simply updating my address. However, all that it took to =
get them to back off was an irate letter.
Apparently, Colorado does not have a sales tax on airplane parts only on =
completed airplanes. When an homebuilt registration comes through, =
apparently sometimes the state sends out a notice and sometimes they =
don't. Probably depending on which clerk handles the form letters that =
day. In my case, I did not get a notice at all. It has been about two =
years since I registered my Velocity and it looks as though I will not =
get one. Many homebuilders don't.
When the subject comes up at the local EAA chapter meeting, the people =
who did get the form letters say that it is easy to get the state to =
back off. Apparently all that is necessary is a letter stating that you =
did not purchase the airplane but that you built it yourself from parts =
and as far as you know any relevant sales taxes where paid on the parts =
at the time that you purchased the parts.
I am not a lawyer, but that is the situation in Colorado as far as I =
know it.
Don
----- Original Message -----=20
From: Tom Martino=20
To: Velocity Email List (E-mail)=20
Sent: Friday, June 13, 2003 10:53 AM
Subject: REFLECTOR:A TOUCHY SUBJECT!
I hesitate to bring this up ... but it something we all have to face. =
Whenever Iregister a plane with the FAA, I get a notice shortly after =
from the State Revenue Department wanting SALES TAX! If you don't come =
up with what they consider to be "fair market value", they assess a =
value and make you pay taxes on that!
This is my first homebuilt. How have you guys valued the plane for =
tax purposes?
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<DIV><FONT size=3D2>In Colorado, you will probably not have to pay any =
sales tax=20
on your homebuilt. The State Revenue Department automatically =
picks up all=20
new registrations, but what happens next is kind of murky. For example =
when I=20
moved to Colorado ten years ago and reregisterd my plane, the state =
tried=20
to collect sales tax on a Mooney that I had owned for years and for =
which I was=20
simply updating my address. However, all that it took to get them to =
back off=20
was an irate letter.</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>Apparently, Colorado does not have a sales tax on =
airplane=20
parts only on completed airplanes. When an homebuilt registration comes =
through,=20
apparently sometimes the state sends out a notice and sometimes they =
don't.=20
Probably depending on which clerk handles the form letters that day. In =
my case,=20
I did not get a notice at all. It has been about two years since I =
registered my=20
Velocity and it looks as though I will not get one. Many homebuilders=20
don't.</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>When the subject comes up at the local EAA chapter =
meeting,=20
the people who did get the form letters say that it is easy to get the =
state to=20
back off. Apparently all that is necessary is a letter stating that you =
did not=20
purchase the airplane but that you built it yourself from parts and as =
far as=20
you know any relevant sales taxes where paid on the parts at the time =
that you=20
purchased the parts.</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>I am not a lawyer, but that is the situation in =
Colorado as=20
far as I know it.</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>Don</FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
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<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dtmartino@troubleshooter.com=20
href=3D"mailto:tmartino@troubleshooter.com">Tom Martino</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dreflector@www.tvbf.org=20
href=3D"mailto:reflector@www.tvbf.org">Velocity Email List =
(E-mail)</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, June 13, 2003 =
10:53=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> REFLECTOR:A TOUCHY=20
SUBJECT!</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2><SPAN class=3D713585016-06062003>I =
hesitate to=20
bring this up ... but it something we all have to face. Whenever =
Iregister a plane with the FAA, I get a notice shortly after from the =
State=20
Revenue Department wanting SALES TAX! If you don't come up with =
what=20
they consider to be "fair market value", they assess a value and make =
you pay=20
taxes on that!</SPAN></FONT></DIV>
<DIV><FONT face=3DArial size=3D2><SPAN=20
class=3D713585016-06062003></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2><SPAN class=3D713585016-06062003>This =
is my first=20
homebuilt. How have you guys valued the plane for tax=20
purposes?</SPAN></FONT></DIV></BLOCKQUOTE></BODY></HTML>
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