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#1
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Apparently the County Assessor noticed my glider on the ramp at Minden
at the end of April, the very day I rigged it. I got a form letter from them asking if it was "based" there, how long it was going to be there, and how long it had been there. Setting aside how long it's been there, what answers to the first questions are likely to result in the lowest tax assessment, and which answers produce the greatest amount of trouble? For example, if I say it's there all year, that makes it easy for them. Any way to estimate this cost for a CA resident? However if I say it's only in Nevada during the soaring season and in California the rest of the year, are they likely to pro-rate NV taxes and then demand CA tax receipts for it's location during the rest of the year? Any way to estimate Santa Clara County costs so as to compare with Nevada? Anyone with any first hand experience in this matter? You may respond privately by email if you like. A Google search of r.a.s archives turned up sales and use tax threads, but little about this particular topic. Thanks, Ken CA resident |
#2
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Hi Ken,
I am a California resident who bases my plane at Minden, specifically because of taxes. You can declare any physical place as where you base your plane for tax purposes. Many people try and scam the system by constantly moving their planes around and when you are contacted by the Nevada people you tell them the plane is based in California. When you are contacted by California you tell them it is based in Nevada. That worked for me for about ten years and then California and Nevada started talking to each other about six years ago. You can declare your home as where you base your plane and then you will pay the same rate you pay on your house which is generally 1% of the 'fair market value'. You will pay the tax rate that applies for the county in which you base your plane. Essentially all either state cares about is that you are paying taxes to someone. I had long discussions with the tax people in California and Nevada. California will establish a value for your plane and tax the plane at full value. For a fairly new plane it will be the purchase price including all installed instruments. For an older plane it will be your purchase price or the fair market value that the tax assessor tells you it is. California will essentially never depreciate the tax basis of your plane. Nevada uses a different formula and after three years will begin to decrease the tax basis of your plane. I pay significantly less to Nevada. California has contacted me twice when one of their inspectors saw my plane on California airports. They challenged my declaration of Nevada as my base, but by paying a tiedown fee at Minden all of the problems went away. You should do what I did and just call up both tax offices and talk with them. They were very easy to talk to and answered all my questions and even ran 'what ifs' regarding tax rates. There are lots of schemes to avoid paying any taxes but they were all too complicated for me. |
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