New California Tax Provision

[Jim Weir]

There has been a new wrinkle added to the California state/local property tax
exemption for aircraft of "historical interest". Historical interest is an
aircraft over 35 years old OR an aircraft that there are less than 5 copies of
in the world.

Most of us flying old airplanes fit into the 35 year category, and most
Californians building homebuilts have gotten the word to name their aircraft a
unique name like "Blatz VeryEasy Supercruiser" so that there is only ONE copy in
the world.

Another provision is that the aircraft has to be "on exhibition" 12 days a year
or more. Simply opening the hangar door doesn't cut it; the exhibition has to
be at some sort of recognized gathering of aircraft. There ARE exceptions to
this, but in general, you have to display at an advertised airshow or event of
some sort.

Starting 1 January 2004, you have to have the signature of the "event
coordinator" on your certificate of participation. There is no definition of
"event coordinator" or "certificate of participation" at this time, but I
suspect that the California Tax department counsel will make some sort of
interpretation before long.

Just be advised...until we get further guidance, get SOMEBODY's signature on
your paperwork when you go to an airshow if you are intending to use the tax
exemption on your aircraft.

I've suggested to the EAA that until we get firm guidance that the sponsors of
any airshow or gathering designate the pilot of the aircraft a "deputy event
coordinator" upon registration of the aircraft at the airshow.

It would also be a hell of an idea if a chapter has a meeting place on an
airport that they put a standing "coming events" notice in the local newspaper
with an annotation that the public is invited to view "historical aircraft".
Then designate the entire airport the "designated display area" so that tiedowns
and open hangars can be used for display.

The same could be done by the local airport authority by designating one day a
month (first Saturday, fourth Tuesday ...) as "airport display day" in
accordance with the preceding ideas.

Just trying to save you money, folks...

Jim

Jim Weir (A&P/IA, CFI, & other good alphabet soup)
VP Eng RST Pres. Cyberchapter EAA Tech. Counselor
http://www.rst-engr.com

[Ron Natalie]

"Jim Weir" > wrote in message ...

> I've suggested to the EAA that until we get firm guidance that the sponsors of
> any airshow or gathering designate the pilot of the aircraft a "deputy event
> coordinator" upon registration of the aircraft at the airshow.

Sort of like the Young Eagle certificate.

[pacplyer]

Jim Weir > wrote in message >...
> There has been a new wrinkle added to the California state/local property tax
> exemption for aircraft of "historical interest". Historical interest is an
> aircraft over 35 years old OR an aircraft that there are less than 5 copies of
> in the world.
>
> Most of us flying old airplanes fit into the 35 year category, and most
> Californians building homebuilts have gotten the word to name their aircraft a
> unique name like "Blatz VeryEasy Supercruiser" so that there is only ONE copy in
> the world.
>
> Another provision is that the aircraft has to be "on exhibition" 12 days a year
> or more. Simply opening the hangar door doesn't cut it; the exhibition has to
> be at some sort of recognized gathering of aircraft. There ARE exceptions to
> this, but in general, you have to display at an advertised airshow or event of
> some sort.
>
> Starting 1 January 2004, you have to have the signature of the "event
> coordinator" on your certificate of participation. There is no definition of
> "event coordinator" or "certificate of participation" at this time, but I
> suspect that the California Tax department counsel will make some sort of
> interpretation before long.
>
> Just be advised...until we get further guidance, get SOMEBODY's signature on
> your paperwork when you go to an airshow if you are intending to use the tax
> exemption on your aircraft.
>
> I've suggested to the EAA that until we get firm guidance that the sponsors of
> any airshow or gathering designate the pilot of the aircraft a "deputy event
> coordinator" upon registration of the aircraft at the airshow.
>
> It would also be a hell of an idea if a chapter has a meeting place on an
> airport that they put a standing "coming events" notice in the local newspaper
> with an annotation that the public is invited to view "historical aircraft".
> Then designate the entire airport the "designated display area" so that tiedowns
> and open hangars can be used for display.
>
> The same could be done by the local airport authority by designating one day a
> month (first Saturday, fourth Tuesday ...) as "airport display day" in
> accordance with the preceding ideas.
>
> Just trying to save you money, folks...
>
> Jim
>
> Jim Weir (A&P/IA, CFI, & other good alphabet soup)
> VP Eng RST Pres. Cyberchapter EAA Tech. Counselor
> http://www.rst-engr.com

Good post and great ideas Jim. This luxury tax has been putting a lot
of so called "rich pilots" in the poor house for years. Was overseas
and an airplane I sold was erroneously reported as being back in my
hangar by "Mr Magoo" our airport manager. (he saw a similar painted
apache in the pattern.) The tenant did not get the tax bills to me,
and you guessed it: a lien was put on my rental house wrecking my
credit rating. Please pursue this solution for my friends who still
have airplanes in Calif.

Thanks,

pacplyer

[Gerry Caron]

"Jim Weir" > wrote in message
...
snip
>
> Another provision is that the aircraft has to be "on exhibition" 12 days a
year
> or more. Simply opening the hangar door doesn't cut it; the exhibition
has to
> be at some sort of recognized gathering of aircraft. There ARE exceptions
to
> this, but in general, you have to display at an advertised airshow or
event of
> some sort.
>
> Starting 1 January 2004, you have to have the signature of the "event
> coordinator" on your certificate of participation. There is no definition
of
> "event coordinator" or "certificate of participation" at this time, but I
> suspect that the California Tax department counsel will make some sort of
> interpretation before long.
>
> Just be advised...until we get further guidance, get SOMEBODY's signature
on
> your paperwork when you go to an airshow if you are intending to use the
tax
> exemption on your aircraft.
>
> I've suggested to the EAA that until we get firm guidance that the
sponsors of
> any airshow or gathering designate the pilot of the aircraft a "deputy
event
> coordinator" upon registration of the aircraft at the airshow.
>
Sounds like all we need is EAA to coordinate some standard wording on the
registration forms used at the events. Something like "Registration and
Certificate of Participation" and have it signed by a "coordinator"
(Volunteer at the reg booth), in duplicate of course. One for their records
and one for yours.

Don't know what EEA guidelines are for retaining reg forms, but it wouldn't
hurt an audit if you could point to the address on the form and they can
confirm it with the event sponsor.

Gerry

[Richard Riley]

On Fri, 02 Jan 2004 11:35:35 -0800, Jim Weir > wrote:
:
:Another provision is that the aircraft has to be "on exhibition" 12 days a year
:or more. Simply opening the hangar door doesn't cut it; the exhibition has to
:be at some sort of recognized gathering of aircraft. There ARE exceptions to
:this, but in general, you have to display at an advertised airshow or event of
:some sort.

Jim does the exhibition have to be in California? Or does going to
Osh and SnF cover it?

[Jim Weir]

The exhibition can be anywhere in the recognized universe. Your trip to the
Mars flyin is covered.

Jim


Richard Riley >
shared these priceless pearls of wisdom:

->On Fri, 02 Jan 2004 11:35:35 -0800, Jim Weir > wrote:
->:
->:Another provision is that the aircraft has to be "on exhibition" 12 days a
year
->:or more. Simply opening the hangar door doesn't cut it; the exhibition has
to
->:be at some sort of recognized gathering of aircraft. There ARE exceptions to
->:this, but in general, you have to display at an advertised airshow or event
of
->:some sort.
->
->Jim does the exhibition have to be in California? Or does going to
->Osh and SnF cover it?

Jim Weir (A&P/IA, CFI, & other good alphabet soup)
VP Eng RST Pres. Cyberchapter EAA Tech. Counselor
http://www.rst-engr.com

[Richard Riley]

On Fri, 02 Jan 2004 20:04:34 -0800, Jim Weir > wrote:

:The exhibition can be anywhere in the recognized universe. Your trip to the
:Mars flyin is covered.
:
:Jim

There's a flyin at Mars, PA? Cool.

Thanks for the heads up.

[David H]

Jim Weir wrote:

> There has been a new wrinkle added to the California state/local property tax
> exemption for aircraft of "historical interest". Historical interest is an
> aircraft over 35 years old OR an aircraft that there are less than 5 copies of
> in the world.

I wonder if Aahnold's personal 747 is exempt....

David H
Boeing Field (BFI), Seattle, WA
- - - - - - - - - - - - - - - - - - - - - - - - - -
Visit the Pacific Northwest Flying forum:
http://www.smartgroups.com/groups/pnwflying

[zxc]

ki
Richard Riley > wrote in message >...
> On Fri, 02 Jan 2004 20:04:34 -0800, Jim Weir > wrote:
>
> :The exhibition can be anywhere in the recognized universe. Your trip to the
> :Mars flyin is covered.
> :
> :Jim
>
> There's a flyin at Mars, PA? Cool.
>
> Thanks for the heads up.