Hello. I live in Illinois. I am in the process of selling my
Cherokee 180. Does anyone know if there are sales tax implications
for the seller? Does it matter if I sell the plane in-state,
out-of-state, or to a corporation?

When I purchased, I bought the plane from an individual who lived in
Illinois (and based the plane here), so no sales tax was due.

Thanks,
Nathan

Most states have information on their website, usually under their
respective Departments of Transportation.

In TX, I ended up talking to the State Comptroller's office. Turns out that
an "occasional sale" required not tax or registration by either party.


"Nathan Young" > wrote in message
...
> Hello. I live in Illinois. I am in the process of selling my
> Cherokee 180. Does anyone know if there are sales tax implications
> for the seller? Does it matter if I sell the plane in-state,
> out-of-state, or to a corporation?
>
> When I purchased, I bought the plane from an individual who lived in
> Illinois (and based the plane here), so no sales tax was due.
>
> Thanks,
> Nathan
>

I am not a tax expert but based on my research when I bought my plane...

The rules in Illinois changed last June for buyers in Illinois. Use tax is
now due from the BUYER when it wasn't before.

I am not aware of any sales or use tax implications for the seller, ever,
anywhere.

Call AOPA. You are a member, aren't you?

--
-------------------------------
Travis
"Nathan Young" > wrote in message
...
> Hello. I live in Illinois. I am in the process of selling my
> Cherokee 180. Does anyone know if there are sales tax implications
> for the seller? Does it matter if I sell the plane in-state,
> out-of-state, or to a corporation?
>
> When I purchased, I bought the plane from an individual who lived in
> Illinois (and based the plane here), so no sales tax was due.
>
> Thanks,
> Nathan
>

In Arkansas the seller is responsible for collecting and paying the sales
tax. I have bought two and sold one all in Arkansas. The second one I
bought, I told the seller he was responsible for paying the sales tax. He
said that wasnt the way it works....but 6 months later got a bill for sales
tax for the sale (guess the FAA notifies the states when a change in
registration take place). I think resellers (dealers) are exempt in
Arkansas

--
Mark Manes
WC5I
T310Q N28409


"Nathan Young" > wrote in message
...
> Hello. I live in Illinois. I am in the process of selling my
> Cherokee 180. Does anyone know if there are sales tax implications
> for the seller? Does it matter if I sell the plane in-state,
> out-of-state, or to a corporation?
>
> When I purchased, I bought the plane from an individual who lived in
> Illinois (and based the plane here), so no sales tax was due.
>
> Thanks,
> Nathan
>


---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.580 / Virus Database: 367 - Release Date: 2/6/2004

leave it to Arkansas to do things differently from everyone else...
but I guess that means if the seller took it out of state.. Arkansas would
not collect..

hope he got credit for paying the Arkansas tax to the seller in his home
state..

BT

"Mark Manes" > wrote in message
...
> In Arkansas the seller is responsible for collecting and paying the sales
> tax. I have bought two and sold one all in Arkansas. The second one I
> bought, I told the seller he was responsible for paying the sales tax. He
> said that wasnt the way it works....but 6 months later got a bill for
sales
> tax for the sale (guess the FAA notifies the states when a change in
> registration take place). I think resellers (dealers) are exempt in
> Arkansas
>
> --
> Mark Manes
> WC5I
> T310Q N28409
>
>
> "Nathan Young" > wrote in message
> ...
> > Hello. I live in Illinois. I am in the process of selling my
> > Cherokee 180. Does anyone know if there are sales tax implications
> > for the seller? Does it matter if I sell the plane in-state,
> > out-of-state, or to a corporation?
> >
> > When I purchased, I bought the plane from an individual who lived in
> > Illinois (and based the plane here), so no sales tax was due.
> >
> > Thanks,
> > Nathan
> >
>
>
> ---
> Outgoing mail is certified Virus Free.
> Checked by AVG anti-virus system (http://www.grisoft.com).
> Version: 6.0.580 / Virus Database: 367 - Release Date: 2/6/2004
>
>

On Wed, 18 Feb 2004 03:16:54 GMT, "Travis Marlatte"
> wrote:

>I am not a tax expert but based on my research when I bought my plane...
>
>The rules in Illinois changed last June for buyers in Illinois. Use tax is
>now due from the BUYER when it wasn't before.
>
>I am not aware of any sales or use tax implications for the seller, ever,
>anywhere.
>
>Call AOPA. You are a member, aren't you?

Thanks for the heads-up on the use tax in Illinois - I bought my 180 4
years ago, so I hadn't kept up with the rules.

Calling AOPA is a great idea too. Will do that.

-Nathan

Nathan Young > wrote in message >...
> Hello. I live in Illinois. I am in the process of selling my
> Cherokee 180. Does anyone know if there are sales tax implications
> for the seller? Does it matter if I sell the plane in-state,
> out-of-state, or to a corporation?
>
> When I purchased, I bought the plane from an individual who lived in
> Illinois (and based the plane here), so no sales tax was due.
>
> Thanks,
> Nathan


Nathan,

I'm based in Illinois also. The buyer is liable for the sales tax.
If the aircraft is purchased from an indivual (rather than a broker or
dealer, etc.) the sales tax is waived. Of course the standard
disclaimers apply, you know, check with a tax consultant, attorney,
etc.

In Rhode lsland, the buyer is responsible for a sales or use tax. Doesn't matter who or where you bought it from.
I think they nail you even if you've owned the airplane then move it into the state.

Maurice Givens wrote:

> Nathan Young > wrote in message >...
> > Hello. I live in Illinois. I am in the process of selling my
> > Cherokee 180. Does anyone know if there are sales tax implications
> > for the seller? Does it matter if I sell the plane in-state,
> > out-of-state, or to a corporation?
> >
> > When I purchased, I bought the plane from an individual who lived in
> > Illinois (and based the plane here), so no sales tax was due.
> >
> > Thanks,
> > Nathan
>
> Nathan,
>
> I'm based in Illinois also. The buyer is liable for the sales tax.
> If the aircraft is purchased from an indivual (rather than a broker or
> dealer, etc.) the sales tax is waived. Of course the standard
> disclaimers apply, you know, check with a tax consultant, attorney,
> etc.

--
--Ray Andraka, P.E.
President, the Andraka Consulting Group, Inc.
401/884-7930 Fax 401/884-7950
email
http://www.andraka.com

"They that give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
-Benjamin Franklin, 1759

"Maurice Givens" > wrote in message
om...
> Nathan Young > wrote in message
>...
> > Hello. I live in Illinois. I am in the process of selling my
> > Cherokee 180. Does anyone know if there are sales tax implications
> > for the seller? Does it matter if I sell the plane in-state,
> > out-of-state, or to a corporation?
> >
> > When I purchased, I bought the plane from an individual who lived in
> > Illinois (and based the plane here), so no sales tax was due.
> >
> > Thanks,
> > Nathan
>
>
> Nathan,
>
> I'm based in Illinois also. The buyer is liable for the sales tax.
> If the aircraft is purchased from an indivual (rather than a broker or
> dealer, etc.) the sales tax is waived. Of course the standard
> disclaimers apply, you know, check with a tax consultant, attorney,
> etc.

Nope. That was the rule change last year. Now, in Illinois, the buyer owes
use tax even when buying from an indiviual. Again, I'm not a tax expert.

When I was getting ready to close on my plane last year, AOPA warned me that
the rule was about to change and that I needed to be careful about the
closing date. My point is that they stay on top of things and are a good
reference.

-------------------------------
Travis

On 18-Feb-2004, (Maurice Givens) wrote:

> I'm based in Illinois also. The buyer is liable for the sales tax.
> If the aircraft is purchased from an indivual (rather than a broker or
> dealer, etc.) the sales tax is waived. Of course the standard
> disclaimers apply, you know, check with a tax consultant, attorney,
> etc.


I suspect Washington State is typical in how they handle sales tax on
big-ticket items like cars and airplanes. If you buy in-state from a
licensed dealer (or broker), the dealer collects sales tax and pays it to
the state. If you buy in-state from an individual or a corporation that is
not a dealer, you (the buyer) are responsible for paying sales tax to the
state. If you are a Washington resident and buy out of state you have to
pay use tax (equal to the sales tax) before you can register the vehicle in
Washington. This obviously works for cars and trucks, which clearly need to
be registered by the state, but it's a bit fuzzier for airplanes.
Supposedly the state does check FAA registry data to find Washington State
owners that have not registered their airplanes in the state. This is
usually done to avoid sales or use tax, since the cost of registration
itself is minimal, and there are no property taxes on airplanes.

--
-Elliott Drucker

writes:

>I suspect Washington State is typical in how they handle sales tax on
>big-ticket items like cars and airplanes. If you buy in-state from a
>licensed dealer (or broker), the dealer collects sales tax and pays it to
>the state. If you buy in-state from an individual or a corporation that is
>not a dealer, you (the buyer) are responsible for paying sales tax to the
>state.

As another data point, the great state of Virginia requires that sales
tax be paid by the purchaser of an aircraft, either through the in-state
dealer (if purchased from such an entity) or directly to the state by
the purchaser if purchased from a different seller. Additionally, if
the aircraft is purchased out-of-state by a nonresident and then brought
into Virginia the owner is expected to pony up the difference between
any sales tax paid elsewhere and what would have been paid had the purchase
been made by a Virginia resident.

I've been audited (twice!) by the Virginia Department of Revenue on this
point; my '78 182RG was purchased in Tennessee when I lived there, and I
paid Tennessee sales tax on it. The first time I was audited (~1996)
I had to dig up the 18-year-old paperwork to prove that the tax was
paid; the second time (last year) all that it took was a telephone
call to the state auditor who apologized for the duplication, blaming
it on the state's records that had transposed the bird's vintage to
make it look like an '87 model.

The auditor also told me that the DOR will ask the Legislature to sunset
any attempts to collect sales tax on aircraft purchased more than 10
years previously, regardless of the amount (if any) of tax paid to
other jurisdictions.

Joe Morris

On Thu, 19 Feb 2004 03:09:35 GMT, "Travis Marlatte"
> wrote:

>"Maurice Givens" > wrote in message

>>
>> I'm based in Illinois also. The buyer is liable for the sales tax.
>> If the aircraft is purchased from an indivual (rather than a broker or
>> dealer, etc.) the sales tax is waived. Of course the standard
>> disclaimers apply, you know, check with a tax consultant, attorney,
>> etc.
>
>Nope. That was the rule change last year. Now, in Illinois, the buyer owes
>use tax even when buying from an indiviual. Again, I'm not a tax expert.

Yep - Illinois use tax is 6.25% - details here.
http://makeashorterlink.com/?S17032377

First, I'd like to thank the State of Illinois for effectively
reducing the value of my aircraft by about 4%. (I'm assuming one can
write-off the use tax).

It's obvious why this tax was passed - in a down economy, it was a
chance for the State to pick up some 'free' revenue. How big is the
aircraft owner population? Certainly not big enough to fight passing
this kind of bill.

Use tax is such a huge scam. Every time a plane is sold, it generates
the 6.25% revenue for the State. I'd never thought of it before, but
use tax must be a tremendous deterrent to purchasing/selling a
high-end aircraft. I couldn't imagine paying $20k use tax on a used
Cirrus.

Worse, reading through the bill (linked above) little of the money
will flow back into the State's aviation system. 80% of the tax goes
to State's general revenue fund. 20% goes to a Local Government
Distributive Fund, which probably pays for a million other things
before paying for new runways and/or airport improvements.

-Nathan

Probably pays to fight airport expansion ;-(

Nathan Young wrote:

> Worse, reading through the bill (linked above) little of the money
> will flow back into the State's aviation system. 80% of the tax goes
> to State's general revenue fund. 20% goes to a Local Government
> Distributive Fund, which probably pays for a million other things
> before paying for new runways and/or airport improvements.
>
> -Nathan

--
--Ray Andraka, P.E.
President, the Andraka Consulting Group, Inc.
401/884-7930 Fax 401/884-7950
email
http://www.andraka.com

"They that give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
-Benjamin Franklin, 1759

"Nathan Young" > wrote in message
...
> On Thu, 19 Feb 2004 03:09:35 GMT, "Travis Marlatte"
> > wrote:
>
> >"Maurice Givens" > wrote in message
>
> >>
> >> I'm based in Illinois also. The buyer is liable for the sales tax.
> >> If the aircraft is purchased from an indivual (rather than a broker
or
> >> dealer, etc.) the sales tax is waived. Of course the standard
> >> disclaimers apply, you know, check with a tax consultant, attorney,
> >> etc.
> >
> >Nope. That was the rule change last year. Now, in Illinois, the buyer
owes
> >use tax even when buying from an indiviual. Again, I'm not a tax
expert.
>
> Yep - Illinois use tax is 6.25% - details here.
> http://makeashorterlink.com/?S17032377
>
> First, I'd like to thank the State of Illinois for effectively
> reducing the value of my aircraft by about 4%. (I'm assuming one can
> write-off the use tax).
>
> It's obvious why this tax was passed - in a down economy, it was a
> chance for the State to pick up some 'free' revenue. How big is the
> aircraft owner population? Certainly not big enough to fight passing
> this kind of bill.
>
> Use tax is such a huge scam. Every time a plane is sold, it generates
> the 6.25% revenue for the State. I'd never thought of it before, but
> use tax must be a tremendous deterrent to purchasing/selling a
> high-end aircraft. I couldn't imagine paying $20k use tax on a used
> Cirrus.
>
> Worse, reading through the bill (linked above) little of the money
> will flow back into the State's aviation system. 80% of the tax goes
> to State's general revenue fund. 20% goes to a Local Government
> Distributive Fund, which probably pays for a million other things
> before paying for new runways and/or airport improvements.
>
> -Nathan


Yup. God bless governor Rod Bla****usabunch...