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#11
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How to buy a US registered glider
On Oct 4, 4:16*pm, glidergeek wrote:
On Oct 4, 8:07*am, "Matt Herron Jr." wrote: On Oct 3, 9:01*am, hretting wrote: I' forgot, I would get a separate bill of sale for the glider and trailer to avoid having to chase it down later. Constello insures them separately. R Costello doesn't care about the price of either. *it is strictly what we mutually agree to. *I don't think you are required to report a price to the FAA either. *The DMV might care about the trailer price though. *And I don't know about my auto insurance for liability. *They might care about trailer price too. Matt The feds don't care what price you put on the bill of sale, but it will be reported to the state of California (by the feds) and if you do not pay Use Tax (aka sales tax) on it within I think it's 90 days you will get a bill from the State Board of Equalization. The bill will have your tax calculated based on the $ amount you have reported on the bill of sale times the use tax rate for your county +penalty +interest, unless you intend to keep it out of state. When you go to DMV (to register) you will have to pay Use Tax on the trailer based on how much you payed for it. If you're an honest tax payer like me you might consider having your seller give you 2 separate receipts, 1 for the trailer and 1 for the glider both adding up to the total price of the purchase to make you trip to DMV more enjoyable. Then next year be prepared to get a property tax bill from your county tax man. It will be assessed at proposition 13 rates of 1% of the value, you will get that every year. One way around that one is if your glider or airplane is 35 years or older you can apply for an exemption based on a historical exemption. .... or you can do what many others do and "hide" it in a nearby tax- free state. For Californians, Nevada, Arizona and Utah seem to work quite well! Mike |
#12
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How to buy a US registered glider
Matt, regarding "Use Tax":
In California, the following phrases may be useful in correspondence with the Bored Of Equalization. "The glider was purchased in an occasional sale, as per BOE publication 61, sections 6006.5 and 6367. It is not an aircraft designed for powered navigation in the air, ref BOE regulation 1593." Essentially, previously-US-registered gliders purchased from individuals are exempt from CA Use Tax (sales tax). Jim |
#13
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How to buy a US registered glider
On Oct 4, 4:16*pm, glidergeek wrote:
On Oct 4, 8:07*am, "Matt Herron Jr." wrote: On Oct 3, 9:01*am, hretting wrote: I' forgot, I would get a separate bill of sale for the glider and trailer to avoid having to chase it down later. Constello insures them separately. R Costello doesn't care about the price of either. *it is strictly what we mutually agree to. *I don't think you are required to report a price to the FAA either. *The DMV might care about the trailer price though. *And I don't know about my auto insurance for liability. *They might care about trailer price too. Matt The feds don't care what price you put on the bill of sale, but it will be reported to the state of California (by the feds) and if you do not pay Use Tax (aka sales tax) on it within I think it's 90 days you will get a bill from the State Board of Equalization. The bill will have your tax calculated based on the $ amount you have reported on the bill of sale times the use tax rate for your county +penalty +interest, unless you intend to keep it out of state. When you go to DMV (to register) you will have to pay Use Tax on the trailer based on how much you payed for it. If you're an honest tax payer like me you might consider having your seller give you 2 separate receipts, 1 for the trailer and 1 for the glider both adding up to the total price of the purchase to make you trip to DMV more enjoyable. Then next year be prepared to get a property tax bill from your county tax man. It will be assessed at proposition 13 rates of 1% of the value, you will get that every year. One way around that one is if your glider or airplane is 35 years or older you can apply for an exemption based on a historical exemption. There is absolutely no use tax on a sailplane in California, aircraft not capable of "powered navigation" are exempt -- so motorglider owners (like me) pay sales tax. The state can try billing you whatever they want - if you've paid an invalid use tax bill on a glider I thank you for you donation to the state of California. You will get assessed a property tax, pretty insignificant in the overall picture. And where i keep my glider the county puts that fee towards local airport maintenance so I feel good about paying it. Darryl |
#14
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How to buy a US registered glider
On Oct 4, 9:06*pm, Darryl Ramm wrote:
On Oct 4, 4:16*pm, glidergeek wrote: On Oct 4, 8:07*am, "Matt Herron Jr." wrote: On Oct 3, 9:01*am, hretting wrote: I' forgot, I would get a separate bill of sale for the glider and trailer to avoid having to chase it down later. Constello insures them separately. R Costello doesn't care about the price of either. *it is strictly what we mutually agree to. *I don't think you are required to report a price to the FAA either. *The DMV might care about the trailer price though. *And I don't know about my auto insurance for liability. *They might care about trailer price too. Matt The feds don't care what price you put on the bill of sale, but it will be reported to the state of California (by the feds) and if you do not pay Use Tax (aka sales tax) on it within I think it's 90 days you will get a bill from the State Board of Equalization. The bill will have your tax calculated based on the $ amount you have reported on the bill of sale times the use tax rate for your county +penalty +interest, unless you intend to keep it out of state. When you go to DMV (to register) you will have to pay Use Tax on the trailer based on how much you payed for it. If you're an honest tax payer like me you might consider having your seller give you 2 separate receipts, 1 for the trailer and 1 for the glider both adding up to the total price of the purchase to make you trip to DMV more enjoyable. Then next year be prepared to get a property tax bill from your county tax man. It will be assessed at proposition 13 rates of 1% of the value, you will get that every year. One way around that one is if your glider or airplane is 35 years or older you can apply for an exemption based on a historical exemption. There is absolutely no use tax on a sailplane in California, aircraft not capable of "powered navigation" are exempt -- so motorglider owners (like me) pay sales tax. The state can try billing you whatever they want - if you've paid an invalid use tax bill on a glider I thank you for you donation to the state of California. You will get assessed a property tax, pretty insignificant in the overall picture. And where i keep my glider the county puts that fee towards local airport maintenance so I feel good about paying it. Darryl Darryl is correct. No use tax in California for gliders. There is also a use tax exemption for buying an aircraft from a family member (even with a motor, I believe). I have been told that the tax man swings by the airport around January each year to count up the planes to assess property taxes. How does he determine the value to tax if no price is reported to the FAA? And if the aircraft is not at the airport in January, I guess he misses it that year? Matt |
#15
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How to buy a US registered glider
On Oct 4, 11:15*pm, "Matt Herron Jr." wrote:
On Oct 4, 9:06*pm, Darryl Ramm wrote: On Oct 4, 4:16*pm, glidergeek wrote: On Oct 4, 8:07*am, "Matt Herron Jr." wrote: On Oct 3, 9:01*am, hretting wrote: I' forgot, I would get a separate bill of sale for the glider and trailer to avoid having to chase it down later. Constello insures them separately. R Costello doesn't care about the price of either. *it is strictly what we mutually agree to. *I don't think you are required to report a price to the FAA either. *The DMV might care about the trailer price though. *And I don't know about my auto insurance for liability. *They might care about trailer price too. Matt The feds don't care what price you put on the bill of sale, but it will be reported to the state of California (by the feds) and if you do not pay Use Tax (aka sales tax) on it within I think it's 90 days you will get a bill from the State Board of Equalization. The bill will have your tax calculated based on the $ amount you have reported on the bill of sale times the use tax rate for your county +penalty +interest, unless you intend to keep it out of state. When you go to DMV (to register) you will have to pay Use Tax on the trailer based on how much you payed for it. If you're an honest tax payer like me you might consider having your seller give you 2 separate receipts, 1 for the trailer and 1 for the glider both adding up to the total price of the purchase to make you trip to DMV more enjoyable. Then next year be prepared to get a property tax bill from your county tax man. It will be assessed at proposition 13 rates of 1% of the value, you will get that every year. One way around that one is if your glider or airplane is 35 years or older you can apply for an exemption based on a historical exemption. There is absolutely no use tax on a sailplane in California, aircraft not capable of "powered navigation" are exempt -- so motorglider owners (like me) pay sales tax. The state can try billing you whatever they want - if you've paid an invalid use tax bill on a glider I thank you for you donation to the state of California. You will get assessed a property tax, pretty insignificant in the overall picture. And where i keep my glider the county puts that fee towards local airport maintenance so I feel good about paying it. Darryl Darryl is correct. *No use tax in California for gliders. *There is also a use tax exemption for buying an aircraft from a family member (even with a motor, I believe). *I have been told that the tax man swings by the airport around January each year to count up the planes to assess property taxes. *How does he determine the value to tax if no price is reported to the FAA? *And if the aircraft is not at the airport in January, I guess he misses it that year? Matt- Hide quoted text - - Show quoted text - The state pukes read the fed aircraft registry every year and send out a 'feeler' letter to any ship that isn't in their system. They know nothing more than type aircraft, N number and your address. They will ask for purchase price, condition, aivionics, etc. Tell them what your conscience directs, rembering it is not a sin to lie to the tax man! Years back I got this letter and told them the ship was in Nevada...............3 months later I got a letter from Nevada, so I told them the ship was in California. Didn't work, the Counties talk to each other! Nevada (Washo Co) sent me a tax bill and had no interest in discussing the amount. Bottom line....most County assessors know very little about sailplanes and believed my LS-6 was worth 15K. That ship is now the proud possession of Matt's daddy! Cheers, JJ JJ |
#16
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How to buy a US registered glider
On Oct 5, 6:36*am, JJ Sinclair wrote:
On Oct 4, 11:15*pm, "Matt Herron Jr." wrote: On Oct 4, 9:06*pm, Darryl Ramm wrote: On Oct 4, 4:16*pm, glidergeek wrote: On Oct 4, 8:07*am, "Matt Herron Jr." wrote: On Oct 3, 9:01*am, hretting wrote: I' forgot, I would get a separate bill of sale for the glider and trailer to avoid having to chase it down later. Constello insures them separately. R Costello doesn't care about the price of either. *it is strictly what we mutually agree to. *I don't think you are required to report a price to the FAA either. *The DMV might care about the trailer price though. *And I don't know about my auto insurance for liability.. *They might care about trailer price too. Matt The feds don't care what price you put on the bill of sale, but it will be reported to the state of California (by the feds) and if you do not pay Use Tax (aka sales tax) on it within I think it's 90 days you will get a bill from the State Board of Equalization. The bill will have your tax calculated based on the $ amount you have reported on the bill of sale times the use tax rate for your county +penalty +interest, unless you intend to keep it out of state. When you go to DMV (to register) you will have to pay Use Tax on the trailer based on how much you payed for it. If you're an honest tax payer like me you might consider having your seller give you 2 separate receipts, 1 for the trailer and 1 for the glider both adding up to the total price of the purchase to make you trip to DMV more enjoyable. Then next year be prepared to get a property tax bill from your county tax man. It will be assessed at proposition 13 rates of 1% of the value, you will get that every year. One way around that one is if your glider or airplane is 35 years or older you can apply for an exemption based on a historical exemption. There is absolutely no use tax on a sailplane in California, aircraft not capable of "powered navigation" are exempt -- so motorglider owners (like me) pay sales tax. The state can try billing you whatever they want - if you've paid an invalid use tax bill on a glider I thank you for you donation to the state of California. You will get assessed a property tax, pretty insignificant in the overall picture. And where i keep my glider the county puts that fee towards local airport maintenance so I feel good about paying it. Darryl Darryl is correct. *No use tax in California for gliders. *There is also a use tax exemption for buying an aircraft from a family member (even with a motor, I believe). *I have been told that the tax man swings by the airport around January each year to count up the planes to assess property taxes. *How does he determine the value to tax if no price is reported to the FAA? *And if the aircraft is not at the airport in January, I guess he misses it that year? Matt- Hide quoted text - - Show quoted text - The state pukes read the fed aircraft registry every year and send out a 'feeler' letter to any ship that isn't in their system. They know nothing more than type aircraft, N number and your address. They will ask for purchase price, condition, aivionics, etc. Tell them what your conscience directs, rembering it is not a sin to lie to the tax man! Years back I got this letter and told them the ship was in Nevada...............3 months later I got a letter from Nevada, so I told them the ship was in California. Didn't work, the Counties talk to each other! Nevada (Washo Co) sent me a tax bill and had no interest in discussing the amount. Bottom line....most County assessors know very little about sailplanes and believed my LS-6 was worth 15K. That ship is now the proud possession of Matt's daddy! Cheers, JJ JJ He is completely in love with the LS-6, JJ |
#17
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How to buy a US registered glider
On Oct 4, 6:07*pm, Mike the Strike wrote:
On Oct 4, 4:16*pm, glidergeek wrote: On Oct 4, 8:07*am, "Matt Herron Jr." wrote: On Oct 3, 9:01*am, hretting wrote: I' forgot, I would get a separate bill of sale for the glider and trailer to avoid having to chase it down later. Constello insures them separately. R Costello doesn't care about the price of either. *it is strictly what we mutually agree to. *I don't think you are required to report a price to the FAA either. *The DMV might care about the trailer price though. *And I don't know about my auto insurance for liability. *They might care about trailer price too. Matt The feds don't care what price you put on the bill of sale, but it will be reported to the state of California (by the feds) and if you do not pay Use Tax (aka sales tax) on it within I think it's 90 days you will get a bill from the State Board of Equalization. The bill will have your tax calculated based on the $ amount you have reported on the bill of sale times the use tax rate for your county +penalty +interest, unless you intend to keep it out of state. When you go to DMV (to register) you will have to pay Use Tax on the trailer based on how much you payed for it. If you're an honest tax payer like me you might consider having your seller give you 2 separate receipts, 1 for the trailer and 1 for the glider both adding up to the total price of the purchase to make you trip to DMV more enjoyable. Then next year be prepared to get a property tax bill from your county tax man. It will be assessed at proposition 13 rates of 1% of the value, you will get that every year. One way around that one is if your glider or airplane is 35 years or older you can apply for an exemption based on a historical exemption. ... or you can do what many others do and "hide" it in a nearby tax- free state. *For Californians, Nevada, Arizona and Utah seem to work quite well! Mike Sorry MIke UT will charge you sales tax and a yearly state use fee. For experimental planes it is $125 per year. |
#18
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How to buy a US registered glider
On Oct 5, 6:36*am, JJ Sinclair wrote:
On Oct 4, 11:15*pm, "Matt Herron Jr." wrote: On Oct 4, 9:06*pm, Darryl Ramm wrote: On Oct 4, 4:16*pm, glidergeek wrote: On Oct 4, 8:07*am, "Matt Herron Jr." wrote: On Oct 3, 9:01*am, hretting wrote: I' forgot, I would get a separate bill of sale for the glider and trailer to avoid having to chase it down later. Constello insures them separately. R Costello doesn't care about the price of either. *it is strictly what we mutually agree to. *I don't think you are required to report a price to the FAA either. *The DMV might care about the trailer price though. *And I don't know about my auto insurance for liability.. *They might care about trailer price too. Matt The feds don't care what price you put on the bill of sale, but it will be reported to the state of California (by the feds) and if you do not pay Use Tax (aka sales tax) on it within I think it's 90 days you will get a bill from the State Board of Equalization. The bill will have your tax calculated based on the $ amount you have reported on the bill of sale times the use tax rate for your county +penalty +interest, unless you intend to keep it out of state. When you go to DMV (to register) you will have to pay Use Tax on the trailer based on how much you payed for it. If you're an honest tax payer like me you might consider having your seller give you 2 separate receipts, 1 for the trailer and 1 for the glider both adding up to the total price of the purchase to make you trip to DMV more enjoyable. Then next year be prepared to get a property tax bill from your county tax man. It will be assessed at proposition 13 rates of 1% of the value, you will get that every year. One way around that one is if your glider or airplane is 35 years or older you can apply for an exemption based on a historical exemption. There is absolutely no use tax on a sailplane in California, aircraft not capable of "powered navigation" are exempt -- so motorglider owners (like me) pay sales tax. The state can try billing you whatever they want - if you've paid an invalid use tax bill on a glider I thank you for you donation to the state of California. You will get assessed a property tax, pretty insignificant in the overall picture. And where i keep my glider the county puts that fee towards local airport maintenance so I feel good about paying it. Darryl Darryl is correct. *No use tax in California for gliders. *There is also a use tax exemption for buying an aircraft from a family member (even with a motor, I believe). *I have been told that the tax man swings by the airport around January each year to count up the planes to assess property taxes. *How does he determine the value to tax if no price is reported to the FAA? *And if the aircraft is not at the airport in January, I guess he misses it that year? Matt- Hide quoted text - - Show quoted text - The state pukes read the fed aircraft registry every year and send out a 'feeler' letter to any ship that isn't in their system. They know nothing more than type aircraft, N number and your address. They will ask for purchase price, condition, aivionics, etc. Tell them what your conscience directs, rembering it is not a sin to lie to the tax man! Years back I got this letter and told them the ship was in Nevada...............3 months later I got a letter from Nevada, so I told them the ship was in California. Didn't work, the Counties talk to each other! Nevada (Washo Co) sent me a tax bill and had no interest in discussing the amount. Bottom line....most County assessors know very little about sailplanes and believed my LS-6 was worth 15K. That ship is now the proud possession of Matt's daddy! Cheers, JJ JJ You don't need to get all twisted up in lying to the state franchise board. You just need to point out it is a glider and exempt from state sales/use tax. As for local property tax. Pay the man. Colusa county in particular routes aircraft property tax back into airport maintenance and that's a good thing. Other counties do as well. Darryl |
#19
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How to buy a US registered glider
On Oct 5, 11:52*am, Darryl Ramm wrote:
On Oct 5, 6:36*am, JJ Sinclair wrote: On Oct 4, 11:15*pm, "Matt Herron Jr." wrote: On Oct 4, 9:06*pm, Darryl Ramm wrote: On Oct 4, 4:16*pm, glidergeek wrote: On Oct 4, 8:07*am, "Matt Herron Jr." wrote: On Oct 3, 9:01*am, hretting wrote: I' forgot, I would get a separate bill of sale for the glider and trailer to avoid having to chase it down later. Constello insures them separately. R Costello doesn't care about the price of either. *it is strictly what we mutually agree to. *I don't think you are required to report a price to the FAA either. *The DMV might care about the trailer price though. *And I don't know about my auto insurance for liability. *They might care about trailer price too. Matt The feds don't care what price you put on the bill of sale, but it will be reported to the state of California (by the feds) and if you do not pay Use Tax (aka sales tax) on it within I think it's 90 days you will get a bill from the State Board of Equalization. The bill will have your tax calculated based on the $ amount you have reported on the bill of sale times the use tax rate for your county +penalty +interest, unless you intend to keep it out of state. When you go to DMV (to register) you will have to pay Use Tax on the trailer based on how much you payed for it. If you're an honest tax payer like me you might consider having your seller give you 2 separate receipts, 1 for the trailer and 1 for the glider both adding up to the total price of the purchase to make you trip to DMV more enjoyable. Then next year be prepared to get a property tax bill from your county tax man. It will be assessed at proposition 13 rates of 1% of the value, you will get that every year. One way around that one is if your glider or airplane is 35 years or older you can apply for an exemption based on a historical exemption. There is absolutely no use tax on a sailplane in California, aircraft not capable of "powered navigation" are exempt -- so motorglider owners (like me) pay sales tax. The state can try billing you whatever they want - if you've paid an invalid use tax bill on a glider I thank you for you donation to the state of California. You will get assessed a property tax, pretty insignificant in the overall picture. And where i keep my glider the county puts that fee towards local airport maintenance so I feel good about paying it. Darryl Darryl is correct. *No use tax in California for gliders. *There is also a use tax exemption for buying an aircraft from a family member (even with a motor, I believe). *I have been told that the tax man swings by the airport around January each year to count up the planes to assess property taxes. *How does he determine the value to tax if no price is reported to the FAA? *And if the aircraft is not at the airport in January, I guess he misses it that year? Matt- Hide quoted text - - Show quoted text - The state pukes read the fed aircraft registry every year and send out a 'feeler' letter to any ship that isn't in their system. They know nothing more than type aircraft, N number and your address. They will ask for purchase price, condition, aivionics, etc. Tell them what your conscience directs, rembering it is not a sin to lie to the tax man! Years back I got this letter and told them the ship was in Nevada...............3 months later I got a letter from Nevada, so I told them the ship was in California. Didn't work, the Counties talk to each other! Nevada (Washo Co) sent me a tax bill and had no interest in discussing the amount. Bottom line....most County assessors know very little about sailplanes and believed my LS-6 was worth 15K. That ship is now the proud possession of Matt's daddy! Cheers, JJ JJ You don't need to get all twisted up in lying to the state franchise board. You just need to point out it is a glider and exempt from state sales/use tax. As for local property tax. Pay the man. Colusa county in particular routes aircraft property tax back into airport maintenance and that's a good thing. Other counties do as well. Darryl Is local property tax assessed based on the location of the glider or the owner? what is the rate for you Darryl, 1%? How did the local tax guy determine the value of the aircraft? Matt |
#20
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How to buy a US registered glider
On Oct 5, 4:08*pm, "Matt Herron Jr." wrote:
On Oct 5, 11:52*am, Darryl Ramm wrote: On Oct 5, 6:36*am, JJ Sinclair wrote: On Oct 4, 11:15*pm, "Matt Herron Jr." wrote: On Oct 4, 9:06*pm, Darryl Ramm wrote: On Oct 4, 4:16*pm, glidergeek wrote: On Oct 4, 8:07*am, "Matt Herron Jr." wrote: On Oct 3, 9:01*am, hretting wrote: I' forgot, I would get a separate bill of sale for the glider and trailer to avoid having to chase it down later. Constello insures them separately. R Costello doesn't care about the price of either. *it is strictly what we mutually agree to. *I don't think you are required to report a price to the FAA either. *The DMV might care about the trailer price though. *And I don't know about my auto insurance for liability. *They might care about trailer price too. Matt The feds don't care what price you put on the bill of sale, but it will be reported to the state of California (by the feds) and if you do not pay Use Tax (aka sales tax) on it within I think it's 90 days you will get a bill from the State Board of Equalization. The bill will have your tax calculated based on the $ amount you have reported on the bill of sale times the use tax rate for your county +penalty +interest, unless you intend to keep it out of state. When you go to DMV (to register) you will have to pay Use Tax on the trailer based on how much you payed for it. If you're an honest tax payer like me you might consider having your seller give you 2 separate receipts, 1 for the trailer and 1 for the glider both adding up to the total price of the purchase to make you trip to DMV more enjoyable. Then next year be prepared to get a property tax bill from your county tax man. It will be assessed at proposition 13 rates of 1% of the value, you will get that every year. One way around that one is if your glider or airplane is 35 years or older you can apply for an exemption based on a historical exemption. There is absolutely no use tax on a sailplane in California, aircraft not capable of "powered navigation" are exempt -- so motorglider owners (like me) pay sales tax. The state can try billing you whatever they want - if you've paid an invalid use tax bill on a glider I thank you for you donation to the state of California. You will get assessed a property tax, pretty insignificant in the overall picture. And where i keep my glider the county puts that fee towards local airport maintenance so I feel good about paying it. Darryl Darryl is correct. *No use tax in California for gliders. *There is also a use tax exemption for buying an aircraft from a family member (even with a motor, I believe). *I have been told that the tax man swings by the airport around January each year to count up the planes to assess property taxes. *How does he determine the value to tax if no price is reported to the FAA? *And if the aircraft is not at the airport in January, I guess he misses it that year? Matt- Hide quoted text - - Show quoted text - The state pukes read the fed aircraft registry every year and send out a 'feeler' letter to any ship that isn't in their system. They know nothing more than type aircraft, N number and your address. They will ask for purchase price, condition, aivionics, etc. Tell them what your conscience directs, rembering it is not a sin to lie to the tax man! Years back I got this letter and told them the ship was in Nevada...............3 months later I got a letter from Nevada, so I told them the ship was in California. Didn't work, the Counties talk to each other! Nevada (Washo Co) sent me a tax bill and had no interest in discussing the amount. Bottom line....most County assessors know very little about sailplanes and believed my LS-6 was worth 15K. That ship is now the proud possession of Matt's daddy! Cheers, JJ JJ You don't need to get all twisted up in lying to the state franchise board. You just need to point out it is a glider and exempt from state sales/use tax. As for local property tax. Pay the man. Colusa county in particular routes aircraft property tax back into airport maintenance and that's a good thing. Other counties do as well. Darryl Is local property tax assessed based on the location of the glider or the owner? *what is the rate for you Darryl, 1%? *How did the local tax guy determine the value of the aircraft? Matt It is the location of the property not the owner. It is based on where the glider spends most of its time. My residential county contacted me after purchase (they watch the FAA filings) and invited me to pay, I just let them know the glider is not kept in their county and gave them details for where it is kept. I have no idea if they contacted the other county or not - but those guys survey aircraft at the gliderports anyhow and I'm happy to pay (but only to one county). Most likely the county assessor will ask you for a valuation, they might followup asking for a bill of sale etc. if they suspect B.S., or if they have glider ports in your area they may assume one based on similar gliders. The rate varies from county to county. Call you local county assessors office or look up their web site. Darryl |
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