Second-hand kit purchase issues FL-TX

I took this off the Illinois tax website:
Tax Rate
The rate is 6.25% of the purchase price or fair market value,
whichever is greater.
If you acquire the aircraft by purchase from a person or business
that is not in the business of selling aircraft at retail, you must pay
tax on the aircraft's purchase price. If the aircraft's purchase
price is less than the fair market value, you must pay tax on the
aircraft's fair market value on the date acquired or the date brought
into Illinois, whichever is later. If you acquire a share of an
aircraft, tax is based on the purchase price or fair market value of
the share acquired. There is no provision for a trade-in allowance
under Aircraft Use Tax. The tax due is based on the fair market value
of the aircraft or share of the aircraft.


I like the words "which ever is greater"

I got a written response from the State of TX: No tax is due because this
falls under the "occasional sale" exemption. Second hand kit, both of us
individuals, neither engaged in the business of selling stuff.

QUOTE:
The purchase of an aircraft kit and/or aircraft parts and materials may be
exempt as an occasional sale under Tax Code Section 151.304(b)(1) provided:

1) the seller has not made more than two sales of taxable items (not just
parts for an aircraft) subject to sales tax within a 12-month period, and
the seller is not engaged in the business of selling taxable items (not just
aircraft parts) and 2) neither the seller nor the buyer has been issued a
sales tax permit or the equivalent by Texas or any other state.

In other words the purchase, in one or two transactions in a 12-month
period, of parts and materials to build an aircraft by an individual who
does not hold a sales tax permit from another individual who also does not
hold a sales tax permit, is exempt from Texas sales and use tax as an
occasional sale. However, the subsequent purchase of such parts and
materials by the same purchaser from the same seller will be subject to
Texas use tax if brought or delivered into Texas. See Rule 3.316 on
occasional sales.

END QUOTE

1) the seller has not made more than two sales of taxable items (not
just
parts for an aircraft) subject to sales tax within a 12-month period,
and
the seller is not engaged in the business of selling taxable items (not
just
aircraft parts) and 2) neither the seller nor the buyer has been issued
a
sales tax permit or the equivalent by Texas or any other state.

Right... That first one gets you into the "occasional Sale" arena.
The second is that little nasty that I referred to, where anyone
holding a valid sales tax permit is presumed to be making a business
transaction, no matter what or why the purchase was made. There is a
little additional wording in there somewhere (used to be subsection h)
that says if it's an airplane, the it *IS* purchased for business use.

But, as is true for most folks, if you can get by #1 and #2, then no
tax is due. [First plane I ever bought, they sent me the request for
Use Tax a good 5 years after the purchase. To agree that it was
Occasional Sale (second part of the rules hadn't been written in back
then) they wanted to seller to sign this notarized affidavit. Well, he
was elderly then, and selling due to ill health, and moving...
Probably cost me almost as much to track him down and get it signed as
the tax would have been. G