New York State Sales Tax (Aircraft) Info

[James Keane]

All,

I am about to purchase an aircraft that currently resides in CA. I am
planning to fly it back to NY and register it in New York. I
understand that there is a 4% sales tax on aircraft registered in New
York, due at the time of purchase.

Is anyone aware of any interesting loopholes to this sales tax law? I
understand that in some states, if the airplane resides in a state
outside of the new registration state for more than 90 days, the new
owner is exempt from sales tax.

Does anyone know if this is applicable to NY, or if there are any
other options I should be considering?

Thanks,
James

[zatatime]

On 16 Sep 2004 12:17:42 -0700, (James Keane)
wrote:

>All,
>
>I am about to purchase an aircraft that currently resides in CA. I am
>planning to fly it back to NY and register it in New York. I
>understand that there is a 4% sales tax on aircraft registered in New
>York, due at the time of purchase.
>
>Is anyone aware of any interesting loopholes to this sales tax law? I
>understand that in some states, if the airplane resides in a state
>outside of the new registration state for more than 90 days, the new
>owner is exempt from sales tax.
>
>Does anyone know if this is applicable to NY, or if there are any
>other options I should be considering?
>
>Thanks,
>James

In NJ there is an "Occassional Purchase" allowance. If you are
transferring the plane from an individual to another (not a
corporation), and the exchange occurrs out of state you do not need to
pay sales tax. It is contained within the Sales & Use Tax statutes.
It might take some work, but searching the NY laws for a similar
allowance may prove fruitful.

HTH.
z

[Jim Carter]

If you need somewhere to stash your new bird for 3 or 4 months, just drop it
by and leave me the keys. Arkansas is beautiful this time of year anyway;
you'd enjoy the trip.

--
Jim Carter
"James Keane" > wrote in message
om...
> All,
>
> I am about to purchase an aircraft that currently resides in CA. I am
> planning to fly it back to NY and register it in New York. I
> understand that there is a 4% sales tax on aircraft registered in New
> York, due at the time of purchase.
>
> Is anyone aware of any interesting loopholes to this sales tax law? I
> understand that in some states, if the airplane resides in a state
> outside of the new registration state for more than 90 days, the new
> owner is exempt from sales tax.
>
> Does anyone know if this is applicable to NY, or if there are any
> other options I should be considering?
>
> Thanks,
> James

[Mack]

"James Keane" > wrote in message
om...
> All,
>
> I am about to purchase an aircraft that currently resides in CA. I am
> planning to fly it back to NY and register it in New York. I
> understand that there is a 4% sales tax on aircraft registered in New
> York, due at the time of purchase.
>
> Is anyone aware of any interesting loopholes to this sales tax law? I
> understand that in some states, if the airplane resides in a state
> outside of the new registration state for more than 90 days, the new
> owner is exempt from sales tax.
>
> Does anyone know if this is applicable to NY, or if there are any
> other options I should be considering?
>
> Thanks,
> James
==============
I can't help you with your problem James but I can forewarn you. The tax
people of NY. have a LONG memory.

I live in NY. bought a plane here and sent a check to the state for the
sales tax.. 18 YEARS later I was asked by the state to prove that I had paid
the sales tax. Fortunately my wife is a saver of important papers and found
the canceled check. We sent in a copy and heard no more about the tax..
Bill

[Bruce Gray]

There is a statute of limitations beyond which they can't go. In Connecticut
it's 3 years, Federal is 3 years for errors and 7 years for fraud. I'm sure
NY has similar statutes. I would have laughed at the state asking me to
prove a tax payment 18 years in the past.

Bruce
www.glasair.org

"Mack" > wrote in message
t...
>

> I can't help you with your problem James but I can forewarn you. The tax
> people of NY. have a LONG memory.
>
> I live in NY. bought a plane here and sent a check to the state for the
> sales tax.. 18 YEARS later I was asked by the state to prove that I had
> paid
> the sales tax. Fortunately my wife is a saver of important papers and
> found
> the canceled check. We sent in a copy and heard no more about the tax..
> Bill
>
>

[Marco Leon]

http://www.nysscpa.org/cpajournal/2004/704/essentials/p38.htm

I came across this interesting article on use taxes and sales taxes in New
York. While it does not mention aircraft purchases specifically, I would
imagine it would be covered under "goods and services."

Man, if NY really wanted to bust your chops, they can charge you use taxes
on all your internet purchases where you didn't pay a tax! Very interesting
read (for a New Yorker).

Marco


"Bruce Gray" > wrote in message
...
> There is a statute of limitations beyond which they can't go. In
> Connecticut it's 3 years, Federal is 3 years for errors and 7 years for
> fraud. I'm sure NY has similar statutes. I would have laughed at the state
> asking me to prove a tax payment 18 years in the past.
>
> Bruce
> www.glasair.org
>
> "Mack" > wrote in message
> t...
>>
>
>> I can't help you with your problem James but I can forewarn you. The tax
>> people of NY. have a LONG memory.
>>
>> I live in NY. bought a plane here and sent a check to the state for the
>> sales tax.. 18 YEARS later I was asked by the state to prove that I had
>> paid
>> the sales tax. Fortunately my wife is a saver of important papers and
>> found
>> the canceled check. We sent in a copy and heard no more about the tax..
>> Bill
>>
>>
>
>

[Brien K. Meehan]

James Keane wrote:
> Is anyone aware of any interesting loopholes to this sales tax law?

I'm not aware of New York's rules specifically, but I believe you can
avoid paying sales tax.

It might be worthwhile to check out an aviation tax advisor. I've used
Advocate Aircraft Taxation Company (http://www.advocatetax.com) with
good results. They're expensive, but thorough and time-saving. The
NBAA (http://www.nbaa.org) has a directory of members who provide
similar services.

[tom418]

James, about a year after I purchased my Seneca, I received a bill from New
York state. I paid the regular state tax for my area (Long Island) of 8%,
plus interest. As far as "loopholes", when I called up the tax department
and explained that the
plane was purchased in Connecticut, the person explained that the tax
becomes due when the plane first lands in New York, regardless of how long
it resides out of state. So theoretically, you can live in Manhattan, and
keep the plane in Teterboro,
and never pay tax . This was in 1988, things may have changed.
When did this 4% tax rate take effect?
"James Keane" > wrote in message
om...
> All,
>
> I am about to purchase an aircraft that currently resides in CA. I am
> planning to fly it back to NY and register it in New York. I
> understand that there is a 4% sales tax on aircraft registered in New
> York, due at the time of purchase.
>
> Is anyone aware of any interesting loopholes to this sales tax law? I
> understand that in some states, if the airplane resides in a state
> outside of the new registration state for more than 90 days, the new
> owner is exempt from sales tax.
>
> Does anyone know if this is applicable to NY, or if there are any
> other options I should be considering?
>
> Thanks,
> James

[Rosspilot]

>theoretically, you can live in Manhattan, and
>keep the plane in Teterboro,
>and never pay tax .

Best advice yet.

I live in NY, but keep plane in NJ and under the NJ "casual sale" law, I paid
no sales tax.


www.Rosspilot.com

[xyzzy]

Marco Leon wrote:

> http://www.nysscpa.org/cpajournal/2004/704/essentials/p38.htm
>
> I came across this interesting article on use taxes and sales taxes in New
> York. While it does not mention aircraft purchases specifically, I would
> imagine it would be covered under "goods and services."
>
> Man, if NY really wanted to bust your chops, they can charge you use taxes
> on all your internet purchases where you didn't pay a tax! Very interesting
> read (for a New Yorker).

Hell, most states are doing this already.

For example, NC:

http://www.dor.state.nc.us/taxes/sales/use.html

[Brien K. Meehan]

(Rosspilot) wrote in message >...

> Best advice yet.

Well, seeing that the advice is both non-specific and inconclusive, I
feel bound to say that I disagree.

[tom418]

James: This article might be of interest to you:

http://www.omnijet.com/topics/nexus.pdf

If you can possibly keep your plane out of state, go for it. Like the
official from NYS Tax & Finance dept. told me, you are subject to taxes when
the plane first enters NY . "James Keane" > wrote in
message om...
> All,
>
> I am about to purchase an aircraft that currently resides in CA. I am
> planning to fly it back to NY and register it in New York. I
> understand that there is a 4% sales tax on aircraft registered in New
> York, due at the time of purchase.
>
> Is anyone aware of any interesting loopholes to this sales tax law? I
> understand that in some states, if the airplane resides in a state
> outside of the new registration state for more than 90 days, the new
> owner is exempt from sales tax.
>
> Does anyone know if this is applicable to NY, or if there are any
> other options I should be considering?
>
> Thanks,
> James