REFLECTOR:A TOUCHY SUBJECT!

Sat, 14 Jun 2003 08:23:17 -0700

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Washington State Dept. of Revenue sent me all the forms, knew the "N" 
number and my residence.  I called and told them it's flown out of Racine, 
WI.  They said to inform them if I ever move it to the state,...  and I 
will.  No other questions came and I wrote on their forms the location of 
the aircraft.  Nothing has come back for 6 months.
JP

At 01:38 PM 6/13/2003 -0700, you wrote:
>I purchased my kit while living in CO...when I registered it I DID get a 
>tax bill from the state....AND I had to pay it.....JC
>
>Donald Royer <djroyer@earthlink.net> wrote:
>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 -----
>From: <mailto:tmartino@troubleshooter.com>Tom Martino
>To: <mailto:reflector@www.tvbf.org>Velocity Email List (E-mail)
>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?
>
>
>Do you Yahoo!?
>Free <http://us.rd.yahoo.com/mail_us/tag/*http://calendar.yahoo.com>online 
>calendar with sync to Outlook(TM).

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<html>
 
Washington State Dept. of Revenue sent me all the forms, knew the
&quot;N&quot; number and my residence.&nbsp; I called and told them it's
flown out of Racine, WI.&nbsp; They said to inform them if I ever move it
to the state,...&nbsp; and I will.&nbsp; No other questions came and I
wrote on their forms the location of the aircraft.&nbsp; Nothing has come
back for 6 months. 
JP 
 
At 01:38 PM 6/13/2003 -0700, you wrote: 
<blockquote type=cite class=cite cite>I purchased my kit while living in
CO...when I registered it I DID get a tax bill from the state....AND I
had to pay it.....JC 
Donald Royer &lt;djroyer@earthlink.net&gt; wrote: 
<dl>
<dd>In Colorado, you will probably not have to pay any sales tax on your
homebuilt. The State Revenue Department&nbsp; 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.
<dd>&nbsp;
<dd>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.
<dd>&nbsp;
<dd>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.
<dd>&nbsp;
<dd>I am not a lawyer, but that is the situation in Colorado as far as I
know it.
<dd>&nbsp;
<dd>Don
<dd>&nbsp;
<dd>----- Original Message ----- 
<dd>From: <a href="mailto:tmartino@troubleshooter.com">Tom
Martino</a> 
<dd>To: <a href="mailto:reflector@www.tvbf.org">Velocity Email List
(E-mail)</a> 
<dd>Sent: Friday, June 13, 2003 10:53 AM
<dd>Subject: REFLECTOR:A TOUCHY SUBJECT! 

<dd>I hesitate to bring this up ... but it something we all have to
face.&nbsp; Whenever Iregister a plane with the FAA, I get a notice
shortly after from the State Revenue Department wanting SALES TAX!&nbsp;
If you don't come up with what they consider to be &quot;fair market
value&quot;, they assess a value and make you pay taxes on that!
<dd>&nbsp;
<dd>This is my first homebuilt.&nbsp; How have you guys valued the plane
for tax purposes?

</dl> 
Do you Yahoo!? 
Free
<a href="http://us.rd.yahoo.com/mail_us/tag/*http://calendar.yahoo.com">online
calendar</a> with sync to Outlook(TM). </blockquote></html>

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