state tax question

You guys are probably tired of these kinds of questions, but I have been searching the web and haven't found the answer to my situation.

I recently purchased a glider in AZ, where I intend to keep it and fly it. I am a Utah resident, and the bill of sale and FAA registration so indicate.

My intention is to pay the AZ sales tax, along with state registration. Will this trigger a beef with Utah? Can one be obliged to pay sales tax to two states, simply because one has primary residence in a different state than that where a purchased asset is located and utilized?

Many thanks for any insight on this.

Del

Del:
While tax enforcement can vary from state to state - you should be OK with Utah as long as the glider isn't used, stored or tied down in Utah. There are legal/constitutional limits on a state's ability to tax an item that is (and always was) outside of it's territory and the mere fact that a Utah resident owns it is not likely to be enough to tax it if it was never in Utah. By way of illustration, if you owned a piece of real estate in AZ it's not likely that Utah could tax it. Just keep it out of Utah.
ROY

On Wednesday, 5 April 2017 13:30:12 UTC-6, Del Jensen wrote:
You guys are probably tired of these kinds of questions, but I have been searching the web and haven't found the answer to my situation.

I recently purchased a glider in AZ, where I intend to keep it and fly it.. I am a Utah resident, and the bill of sale and FAA registration so indicate.

My intention is to pay the AZ sales tax, along with state registration. Will this trigger a beef with Utah? Can one be obliged to pay sales tax to two states, simply because one has primary residence in a different state than that where a purchased asset is located and utilized?

Many thanks for any insight on this.

Del

Make sure you register in AZ and you deal with the AZ FSDO correctly

On Wednesday, April 5, 2017 at 3:30:12 PM UTC-4, Del Jensen wrote:
You guys are probably tired of these kinds of questions, but I have been searching the web and haven't found the answer to my situation.

I recently purchased a glider in AZ, where I intend to keep it and fly it.. I am a Utah resident, and the bill of sale and FAA registration so indicate.

My intention is to pay the AZ sales tax, along with state registration. Will this trigger a beef with Utah? Can one be obliged to pay sales tax to two states, simply because one has primary residence in a different state than that where a purchased asset is located and utilized?

Many thanks for any insight on this.

Del

If for some reason, you decide to move the glider to UT, they may want you to pay sales tax there. However, you will be entitled to get a credit for the sales tax you previously paid to AZ, so you will only have to pay the difference between the two state's tax rates. If the AZ sales tax rate is higher than UT, you won't owe them any money at all.

On Wednesday, April 5, 2017 at 12:30:12 PM UTC-7, Del Jensen wrote:
You guys are probably tired of these kinds of questions, but I have been searching the web and haven't found the answer to my situation.

I recently purchased a glider in AZ, where I intend to keep it and fly it.. I am a Utah resident, and the bill of sale and FAA registration so indicate.

My intention is to pay the AZ sales tax, along with state registration. Will this trigger a beef with Utah? Can one be obliged to pay sales tax to two states, simply because one has primary residence in a different state than that where a purchased asset is located and utilized?

Many thanks for any insight on this.

Del

Del,

If you purchased your glider from an individual as opposed to a business, there will be no sales tax in Arizona. You need to register it in AZ and it will cost you $25 a year.

On Wednesday, April 5, 2017 at 7:01:07 PM UTC-7, Bruce wrote:
On Wednesday, April 5, 2017 at 12:30:12 PM UTC-7, Del Jensen wrote:
You guys are probably tired of these kinds of questions, but I have been searching the web and haven't found the answer to my situation.

I recently purchased a glider in AZ, where I intend to keep it and fly it. I am a Utah resident, and the bill of sale and FAA registration so indicate.

My intention is to pay the AZ sales tax, along with state registration. Will this trigger a beef with Utah? Can one be obliged to pay sales tax to two states, simply because one has primary residence in a different state than that where a purchased asset is located and utilized?

Many thanks for any insight on this.

Del

Del,

If you purchased your glider from an individual as opposed to a business, there will be no sales tax in Arizona. You need to register it in AZ and it will cost you $25 a year.

Thanks, guys. I started to worry after reading some war stories out there where people were getting hit for multiple tax bills after buying aircraft.

I've already been in touch with my FSDO. Since the glider isn't changing its home airport, it looks like all I'll have to do is file a program letter.. The rest of the airworthiness certificate stays in place. Thanks for the reminder on state registration - I'll have to register both glider and trailer.

On Wednesday, April 5, 2017 at 10:39:33 PM UTC-6, Del Jensen wrote:
On Wednesday, April 5, 2017 at 7:01:07 PM UTC-7, Bruce wrote:
On Wednesday, April 5, 2017 at 12:30:12 PM UTC-7, Del Jensen wrote:
You guys are probably tired of these kinds of questions, but I have been searching the web and haven't found the answer to my situation.

I recently purchased a glider in AZ, where I intend to keep it and fly it. I am a Utah resident, and the bill of sale and FAA registration so indicate.

My intention is to pay the AZ sales tax, along with state registration. Will this trigger a beef with Utah? Can one be obliged to pay sales tax to two states, simply because one has primary residence in a different state than that where a purchased asset is located and utilized?

Many thanks for any insight on this.

Del

Del,

If you purchased your glider from an individual as opposed to a business, there will be no sales tax in Arizona. You need to register it in AZ and it will cost you $25 a year.

Thanks, guys. I started to worry after reading some war stories out there where people were getting hit for multiple tax bills after buying aircraft.

Probably there are two tax implications. First is sales tax and second is personal property tax (provided domiciled state collects personal property tax). Sales tax is pretty straight forward for each state. However, personal property tax can be hit or miss; some escape it all together and some pay dearly (imagine annually paying $3.00 per $100 of value). The determining factor is where the sailplane is domiciled and length of residency. Rules vary from state to state and tax "inspection" varies from county to county. Worst case would be two states pursuing you for personal property tax. FWIW, many owners have sailplanes registered to a Delaware corporation, live in a different state, and domicile their sailplane in a third state. Good luck.



On Wednesday, April 5, 2017 at 3:30:12 PM UTC-4, Del Jensen wrote:
You guys are probably tired of these kinds of questions, but I have been searching the web and haven't found the answer to my situation.

I recently purchased a glider in AZ, where I intend to keep it and fly it.. I am a Utah resident, and the bill of sale and FAA registration so indicate.

My intention is to pay the AZ sales tax, along with state registration. Will this trigger a beef with Utah? Can one be obliged to pay sales tax to two states, simply because one has primary residence in a different state than that where a purchased asset is located and utilized?

Many thanks for any insight on this.

Del

You'll also have to file a Bill of Sale and registration with the FAA.

Regarding trailer registration, a lot of people have Kansas plates. It's
my understanding that Kansas does not register trailers under 2,000
pounds but they provide a plate for people traveling out of KS. I've
seen plenty of them on glider trailers all over the country. You can
also find them online. Maybe somebody from Kansas will chime in about
that. I don't know about legalities for non-KS residents...

On 4/5/2017 10:39 PM, Del Jensen wrote:
On Wednesday, April 5, 2017 at 7:01:07 PM UTC-7, Bruce wrote:
On Wednesday, April 5, 2017 at 12:30:12 PM UTC-7, Del Jensen wrote:
You guys are probably tired of these kinds of questions, but I have been searching the web and haven't found the answer to my situation.

I recently purchased a glider in AZ, where I intend to keep it and fly it. I am a Utah resident, and the bill of sale and FAA registration so indicate.

My intention is to pay the AZ sales tax, along with state registration. Will this trigger a beef with Utah? Can one be obliged to pay sales tax to two states, simply because one has primary residence in a different state than that where a purchased asset is located and utilized?

Many thanks for any insight on this.

Del
Del,

If you purchased your glider from an individual as opposed to a business, there will be no sales tax in Arizona. You need to register it in AZ and it will cost you $25 a year.
Thanks, guys. I started to worry after reading some war stories out there where people were getting hit for multiple tax bills after buying aircraft.

I've already been in touch with my FSDO. Since the glider isn't changing its home airport, it looks like all I'll have to do is file a program letter. The rest of the airworthiness certificate stays in place. Thanks for the reminder on state registration - I'll have to register both glider and trailer.

--
Dan, 5J

The US AOPA has done a pretty good job of assimilating a lot of info about aircraft ownership and tax implications (fed and state). Good place to start.


https://www.aopa.org/go-fly/aircraft...guide-to-taxes