Re: Delaware Corporation for Aircraft Owners

[Paul Millner]

>> in some states you may have the option of a one-time $6000 sales tax
payment vs. a $600 annual use-tax payment

What state offers that option, Richard?

Paul

[Richard Kaplan]

"Paul Millner" > wrote in message
...

> What state offers that option, Richard?

Pennsylvania for sure and I believe lots of other states as well -- see the
"exemptions" on the back side of this form for an example:

http://www.revenue.state.pa.us/revenue/lib/revenue/rev-832.pdf


Basically if you purchase an airplane for the purpose of renting it to
pilots then you are exempt from sales/use tax and instead all the renters
(including yourself) pay perpertual use tax on the fair rental value of the
airplane.

--
Richard Kaplan, CFII

www.flyimc.com

[jay somerset]

On Fri, 04 Jul 2003 19:59:25 GMT, "Richard Kaplan"
> wrote:

>
>
>"Paul Millner" > wrote in message
...
>
>> What state offers that option, Richard?
>
>Pennsylvania for sure and I believe lots of other states as well -- see the
>"exemptions" on the back side of this form for an example:
>
>http://www.revenue.state.pa.us/revenue/lib/revenue/rev-832.pdf
>
>
>Basically if you purchase an airplane for the purpose of renting it to
>pilots then you are exempt from sales/use tax and instead all the renters
>(including yourself) pay perpertual use tax on the fair rental value of the
>airplane.

That is also the case in Maryland. Leaseback aircraft are exempt from
sales/use tax (on the purchase price) and also exempt from Personal
Property Tax.