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Old June 7th 07, 02:22 PM posted to rec.aviation.owning
Tim Shoppa
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Posts: 1
Default What determines sale location? (sales/use taxes)

On Jun 2, 10:27 pm, David Lesher wrote:
"Douglas Paterson" writes:
I'm sure the experienced buyers & sellers around here have run into this
before....
One prospective plane I'm looking at is for sale in Connecticut (currently
based there). The current ownership is in a Delaware LLC (of a sole
proprietor, who is flying/basing the plane out of CT). Connecticut has 6%
sales tax that apparently applies to even "casual and isolated sales" of
aircraft; Delaware has no sales tax. I'll leave it as an exercise for the
reader to decide which I find more appealing....
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?


Note the Big Boys take over ownership from Boeing well out over the
ocean, for this very reason. I read a WSJ article on same.


When I lived in BC, I was told by a local that lots of Boeing planes
are delivered at Abbotsford, BC for the purpose of dodging US/
Washington state taxes.

Tim.