REFLECTOR:A TOUCHY SUBJECT!
Jeffrey Clough
reflector@tvbf.org
Fri, 13 Jun 2003 13:38:55 -0700 (PDT)
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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: Tom Martino
To: 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?
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<DIV>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<BR><BR><B><I>Donald Royer <djroyer@earthlink.net></I></B> wrote:
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<DIV><FONT size=2>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.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>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.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>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.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>I am not a lawyer, but that is the situation in Colorado as far as I know it.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Don</FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
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<DIV style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B> <A title=tmartino@troubleshooter.com href="mailto:tmartino@troubleshooter.com">Tom Martino</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=reflector@www.tvbf.org href="mailto:reflector@www.tvbf.org">Velocity Email List (E-mail)</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Friday, June 13, 2003 10:53 AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> REFLECTOR:A TOUCHY SUBJECT!</DIV>
<DIV><BR></DIV>
<DIV><FONT face=Arial size=2><SPAN class=713585016-06062003>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!</SPAN></FONT></DIV>
<DIV><FONT face=Arial size=2><SPAN class=713585016-06062003></SPAN></FONT> </DIV>
<DIV><FONT face=Arial size=2><SPAN class=713585016-06062003>This is my first homebuilt. How have you guys valued the plane for tax purposes?</SPAN></FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></DIV><p><hr SIZE=1>
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