On 27 Mar 2007 09:31:23 -0700, "xyzzy" wrote:

On Mar 27, 8:00 am, Jon Kraus wrote:
Got a fuel bill from our FBO (KUMP Indianapolis Metro) the other day.
Not only do they charge one of the highest fuel prices around, they also
charge 6% Indiana sales tax on top of the 1% Indianapolis Airport
Authority surcharge (because they can).

When I called to inquire about charging 6% sales tax on the fuel they
just said "that is how we've done it for 20 years and everyone else does
it like that too." I've never had a sales tax added on top of the fuel
price before.

I thought that all the taxes we included in the price of the fuel?
Anyone else ever experience this?

I know at my airport (KTTA in NC) my flying club rents planes wet but

Your club rents planes?
The club I was in had members who owned the plane. We did not rent and
our insurance wouldn't let us without paying one whale of an increase,
but we did charge ourselves so much per hour. The airplane(s) were in
partnership so only the owners were flying. Hence no sales tax. Who
ever flew was expected to bring the plane back to the hangar with full
fuel, or to the tabs in the summer.

we break out the base plane rental from the fuel, because we have to
charge sales tax on the rental but don't have to charge it on the
fuel, because the fuel price already includes all taxes. We verified
this with the state revenue department. It makes a difference of
about $2 in the hourly rates, and every little bit helps... I wonder
how many other places that rent wet are inadvertantly paying double
tax on their fuel (once when they fill the plane, then when they pay
sales tax on the wet rental).

OTOH I may have mentioned, the State of Michigan is strapped for cash
and some of the departments are really pushing the limits of legality.
One of the guys on the airport purchased a plane "FROM A DEALER" in
one of the southern states. It needed a bit of work but was in pretty
nice shape. However they wanted to move it and he picked it up for
about 20 grand less than book price. The state is refusing to take the
tax on what he paid legally to a dealer and is demanding tax on the
full book price. They can do that between individuals, but where the
dealer is accountable in their state as well as the individual here,
they are not supposed to accept the actual sale price.
Roger Halstead (K8RI & ARRL life member)
(N833R, S# CD-2 Worlds oldest Debonair)
www.rogerhalstead.com