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Old May 26th 07, 03:51 PM posted to rec.aviation.owning
RK Henry
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Posts: 83
Default What determines sale location? (sales/use taxes)

On Fri, 25 May 2007 19:49:33 -0600, "Douglas Paterson"
wrote:

So, "where" does this airplane sale take place? Is it wherever the keys get
handed to me? Is it DE, since that's where the owning entity exists? CT,
since that's where the plane's based? Whatever we write in a purchase
agreement?


The important question is: Where are you going to base your airplane?
Most states have a use tax and when you import the airplane you're
liable for that. The states and local governments check FAA
registration records, so don't think you're going to save money by
just not mentioning it.

Tennessee periodically sends out letters about my Warrior, trying to
see if there's some way to collect some more tax, noting that they got
my name from the FAA.

I've never bought out of state, but my understanding is that they'll
credit you for sales tax that you paid elsewhere. A wise buyer would
check. And of course preserve those papers forever so you can prove
that you've paid, in case they try to come back later to hit you up
for still more money.

RK Henry