When I moved from ICT, KS (where, surprise-surprise-surprise, old airplanes
are treated with Some Reverence) to NC, my Tri-Pacer sat at tie-down for
about 4-5 months when I received my 'proposed property tax valuation' in the
mail. Privately owned airport, public use, however. The secretary for the
somewhat absentee owner went around and wrote down N-numbers, got the
ownership info, and gave it all to the county (transients included!). She
was to estimate the value of each airplane and send it in to be
cross-referenced to their data.

My tax bill was for $100,000.00 value on my Tri-Pacer.

I promptly called up the tramp and offered it to her for only $50,000. Even
with a 160 Lyc. and the aux tank. A steal.

I guess she didn't have enough credit to swing the deal with the bank. Oh
well....



"Ron Wanttaja" wrote in message
...
On Mon, 10 Nov 2003 10:05:47 -0500, "Larry Smith"
wrote:


"Ray Atkinson" wrote in message
...
I bought my dream plane this summer an rv-6a and the state of
washington is
very happy about it because every time an airplane changes hands they
collect 7 plus percent in taxes. I,m seriously considering moving
theplane
to oregon where I,m planning to move when I retire in 2.5 years. I need
some
of the groups wisdom about some alternative ways to deal with this. I,m
perfectly willing to pay my share but this seems really unfair. thanks
ray in ballard

Weel, Ray, it's a matter of state law.

Oregon shouldn't charge you for registering it there, not for the
purchase
tax anyway. But then that's a matter of Oregon law. As for
Washington's
sales tax, it seems to me the seller would be paying that, not the
purchaser. Did YOU have to pay it? It all depends on the particular
state's laws.

The tax Ray is referring to is not actually a sales tax; Washington calls
it a "Use Tax." It must be paid by the purchaser at the time the plane
receives its Washington state registration. While it is a Use Tax and not
a Sales Tax, by some magic the tax rate is the same as the state sales tax
rate (though without...so far...the local community "kickers"). Since
Washington doesn't have an income tax, the sales and use taxes are pretty
aggressive.

In our state the owners of experimentals are always going round and round
with the taxing authorities, especially the counties on ad valorem taxes.
The counties will appraise the aircraft at 100k and the owner will say
it's
worth 5k.

The Use Tax is based on the amount listed on the FAA Bill of Sale. Most
sellers 'round here leave the amount off the Bill when they sell, and let
the buyer fill in the amount. Some buyers...horrors!... write in an
amount
lower than the amount of money that changed hands.

As one might expect, the people who figure the taxes owed do not have a
natal date of today-1. They have the blue books for aircraft values.
There is more leeway for homebuilts, though, since many types aren't
listed. But I had a friend spend an uncomfortable fifteen minutes at the
local tax office when he was trying to register his new T-18 and the
assessor was suspicious of the low amount of money that he claimed he
bought the airplane for. She went though the blue book, asking, "Is it
about the same as a Cessna 150? Is it about the same as a Cessna 172? Is
it about...."

Builders of homebuilt don't escape the trap...they have to list an
estimated value at the time they first register the airplane. They are
allowed to deduct any state sales taxes paid on parts from the Use Tax
they
owe.

One key factor is the new owner must present a Use Tax receipt to get the
plane registered in Washington state. If you are moving to Oregon, you
might just file the change of address paperwork with the FAA to show the
new address. The Washington State Patrol does survey airplanes at
airports
and run their N-numbers through a database to find those who haven't paid,
but if you've got the plane in a closed hangar and/or are moving to Oregon
soon, that's probably not a big problem.

The fines, however, are fairly high.

We have a nice statute favorable to old airplanes. The tax base for an
elderly aircraft built before 1954 is $500, meaning ad valorem tax is
around
$20 a year. That's attractive for an owner of a DC-3 or P-51. Or even
a
Stearman or Taylorcraft driver.

Yearly registration fees in Washington state are based on the value of the
plane, but they at least have a flat rate for homebuilts. $28/year, IIRC,
as opposed to $50 or so for a Cessna 150-class plane.

Ron Wanttaja