What determines sale location? (sales/use taxes)

"Robert M. Gary" wrote in message
ups.com...

For the purpose of "use tax" where the sale takes place (or where you
residence is) makes no difference. If you bring the plane into the
state to keep it there (with a few exceptions) you owe "use tax".
In many states (certainly in California (what I know)) you can put
your LLC anywhere in the world you want but if the LLC does *ANY*
business or holds any assets physically in California, you owe $800/yr
in franchise tax on the LLC (not even counting the airplane).
I guess I only know California though, check your local state for
"franchise tax" on the LLC.



Robert:

Thanks for the thoughts. I think, though, that you may have confused my 1st
& 2nd questions. Assuming there's nothing I can do to avoid CO's _use_ tax
(grrrrr), it's still well worth my while to structure the sale (if legally
possible) to avoid CT's _sales_ tax (because it's 3.1 percentage points
higher than CO's _use_ tax). In that case, I think where the sale takes
place DOES make a difference--no??

As to the _use_ tax, sad to say that I think you're correct that I'm stuck
there. Seems like, even if I'd bought a plane years ago, they could sock
that to me upon moving to the state. Gotta love the language: it's a tax
on the "privilege" of the use of personal property. Enjoying the use of
legally acquired property [paid for with after-tax dollars outside of the
state, I might add] is a "privilege," eh...? Grrrrr.... I suppose I
should be thankful that the tax collector's not in my house inventorying my
furniture, clothes, computer, and everything else, since the language
certainly includes all personal property!

--
Doug
"Where am I to go/Now that I've gone too far?" -- Golden Earring, "Twilight
Zone"
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