It's over was: RI tax madness

RI appears to be back pedaling fast. The state sent a letter to AOPA today
saying that it was clumsy wording and the provision was never intended to
apply to residents of other states.

It was intended to "help" state residents by letting them buy an airplane
that the kept and used out of state without having to pay the 7% state use
tax until they brought it in to the state and used it as described.

--
Roger Long
Roger Long om wrote in
message ...
Say, this really looks to be for real. AOPA just advised me not to stay
overnight in RI or fly between airports until it blows over. I'm planning
on emailing the following to some of the FBO's to give them some
ammunition
in getting it overturned. Other northeast pilots might want to do
something
similar.

--------------------------------------------------------------------------
--
-------------------

Thank you for taking time to discuss the emergency tax regulation. I will
be informing our 25 club members that flights to RI in club aircraft are
prohibited until this matter is resolved. Although I understand that the
provision only applies to overnight stopovers or flights between RI
airports, I would not want a member faced with the choice between assuming
an economic liability equal to 7% of the aircraft's cost and taking off in
poor weather or with a mechanical problem. I also would not want their
choice of an emergency diversion airport effected by knowledge of this
provision.

I am confident that this tax provision will eventually be overturned by
the
courts, even if common sense does not prevail. In the meantime, we would
be
required to carry any tax judgement as a liability on our books which
would
impair our ability to borrow money or sell the aircraft. We could also be
exposed to legal costs defending against any action by the state to
collect.

I look forward to a successful resolution of this matter so that we, and
other GA pilots, will again feel free to fly to RI and spend our dollars
in
your state.

--
Roger Long

Ray Andraka wrote:

What it is really targeted at is businesses who are basing their corporate
aircraft in neighboring states because RI is the only state in the region that
charges a sales or use tax on aircraft, aircraft maintenance and repairs.

Connecticut will send you a sales/use tax bill as soon as
you register your aircraft with the FAA and list a CT
residence.
Todd Pattist
(Remove DONTSPAMME from address to email reply.)
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Damn right they will. That's why you put "$1 and OVC" (other valuable
considerations) on the sales receipt when you buy an aircraft, rather
than the purchase price. Book value is negotiable, a receipt is not.

Todd Pattist wrote:
Connecticut will send you a sales/use tax bill as soon as
you register your aircraft with the FAA and list a CT
residence.
Todd Pattist
(Remove DONTSPAMME from address to email reply.)
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rip wrote:

Connecticut will send you a sales/use tax bill as soon as
you register your aircraft with the FAA and list a CT
residence.
Damn right they will. That's why you put "$1 and OVC" (other valuable
considerations) on the sales receipt when you buy an aircraft, rather
than the purchase price. Book value is negotiable, a receipt is not.

I know several people who respond to the sales/use tax bill
by notifying the CT tax man that they didn't buy it in CT,
they don't hangar it in CT and they don't fly it in CT. The
tax man goeth away (reluctantly).
Todd Pattist
(Remove DONTSPAMME from address to email reply.)
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"rip" wrote in message
m...
Damn right they will. That's why you put "$1 and OVC" (other valuable
considerations) on the sales receipt when you buy an aircraft, rather
than the purchase price. Book value is negotiable, a receipt is not.

I don't know the CT laws, but I suspect they are similar to WA. In WA, if
the purchase price is obviously artificially low, they use an estimate of
retail value instead of purchase price for the purpose of calculating the
tax.

"Todd Pattist" wrote in message
...
I know several people who respond to the sales/use tax bill
by notifying the CT tax man that they didn't buy it in CT,
they don't hangar it in CT and they don't fly it in CT. The
tax man goeth away (reluctantly).

Are those people telling the truth? If not, they may well find that the tax
man eventually gets around to coming back. I sure hope he does.

"Peter Duniho" wrote:

So, because there are a lot of expenses involved in aviation, it's okay to
break the law?

No. I thought I made it clear that they acted within the
law. In fact the CT law is stricter than the RI law being
discussed, and they had to fit within those tighter
restrictions. I simply think it goes too far to assume a
violation and wish a visit by a tax man on a fellow pilot.
Todd Pattist
(Remove DONTSPAMME from address to email reply.)
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"Todd Pattist" wrote in message
...
So, because there are a lot of expenses involved in aviation, it's okay
to
break the law?

No. I thought I made it clear that they acted within the
law.

My comment was specifically addressed in regards to a person who is lying
when they answer the tax man. If what you say is true, then those comments
don't apply to the people you're talking about. You are taking offense on
their behalf for no reason.

[...] I simply think it goes too far to assume a
violation and wish a visit by a tax man on a fellow pilot.

I simply think it goes too far to assume a comment was directed at a person
that the comment specifically excluded.

But even if I wished a visit by a tax man on the people you're talking
about, so what? According to you, they have nothing to hide, and have
broken no laws. They should breeze right through the audit.

Pete

No. I thought I made it clear that they acted within the
law. In fact the CT law is stricter than the RI law being
discussed, and they had to fit within those tighter
restrictions

Tax avoidance (like draft avoidance) is not illegal. Indeed, I believe
the IRS still includes a statement in the front of its 1040
instruction booklet (I haven't used one in years) reminding people
that they don't have to pay any more taxes than--well, than they have
to pay!

I don't know about other states, but I've found the tax authorities in
New Hampshire to be especially helpful and forthcoming. (Perhaps this
is because the New Hampshire tax system is based on the principal that
taxes and fees are something that the folks from Massachusetts should
pay.) It's good that this is so, because the New Hampshire tax forms
are mysteriously opaque. Indeed, the Interest and Dividends tax form
once got into The New Yorker for its instruction, on Page One: "Do Not
Begin With This Page".


all the best -- Dan Ford
email: www.danford.net/letters.htm#9

see the Warbird's Forum at www.warbirdforum.com
and the Piper Cub Forum at www.pipercubforum.com

"Peter Duniho" wrote:

[...] I simply think it goes too far to assume a
violation and wish a visit by a tax man on a fellow pilot.

I simply think it goes too far to assume a comment was directed at a person
that the comment specifically excluded.

I gave a list of reasons why they didn't have to pay taxes
on their aircraft. You took that list, and without any
basis, questioned the pilots' veracity, then wished the tax
man on them.

The list I gave was for comparison with the RI law.
Although this thread started as an attack on the R.I law,
when you realize that their law excludes non-residents, and
then compare to the CT law, you see that RI is actually
easier on its residents, as they can still fly into their
home state without triggering the use tax.

But even if I wished a visit by a tax man on the people you're talking
about, so what? According to you, they have nothing to hide, and have
broken no laws. They should breeze right through the audit.

Sounds like you've never dealt with the tax man before.

Todd Pattist
(Remove DONTSPAMME from address to email reply.)
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