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