Sales Tax and Delivery

"Rob Thomas" writes:


"(b) Shipments Outside the State--When Sales Tax Does Not Apply. Sales tax
does not apply when the property pursuant to the contact of sale, is
required to be shipped and is shipped to a point outside this state by the
retailer, by means of:

........


Note that Big Iron is routinely "purchased" in-flight, over
International Waters. Care to guess why? Yep!

--
A host is a host from coast to
& no one will talk to a host that's close........[v].(301) 56-LINUX
Unless the host (that isn't close).........................pob 1433
is busy, hung or dead....................................20915-1433

In article ,
"Rob Thomas" wrote:

Thanks! Exactly the type of respone I was looking for.

I'm not really looking to get sneaky, but if they're going to provide a
legal way for me to avoid paying ~$15,000, then I'll seriously consider it.

I think it would definitely be worth it to go through the trouble...


Perhaps there is someone up in Oregon who wants to buy your airplane and
is willing to sell it right back to you.

http://www.aeromarinetaxpros.com/
http://www.astc.com/

On 3/2/04 10:52 AM, in article ,
"Rob Thomas" wrote:

I'm curious if anyone has ever done this:

Purchase a used aircraft in California (my state of residency) and have it
delivered by the dealer to Oregon. There it will stay for 91 days and be
flown on occasion, then brought back down into California.

My real question here is "if I buy the aircraft in California and have it
delivered to Oregon, in what state does my ownership begin?" The tax law is
clear that as soon as I bring the aircraft into California, then I may be
subject to use tax. So, is it my aircraft when I make the purchase in
California, or when I receive the aircraft in Oregon?

r.



I bought an aircraft about a year and a half ago. I live in Eureka, so
keeping it in Oregon was easy. I was successful in obtaining a sales tax
waiver. There is really no need to go to a professional; all you need to do
is keep records. There are some things I kept in mind:

* Do NOT go for the straight 90-day exemption. Go for the 90-days-out-of-180
exemption, and stay out for 120 days to cover all bases. This prevents the
tax board from disqualifying you because of some single day on a whim. If
you apply for the straight exemption, the tax board will examine your log
books and say, "We think you *overflew* California during this here flight.
Sorry."

* Keep PERFECT records of where the aircraft was located on EVERY DAY for
six months following the purchase, and actually keep the airplane out of
state. Make sure people see your airplane there too. The tax board
telephoned every airport at which I claimed to keep the airplane for more
than a single night to confirm that I actually had kept the airplane there.

* I believe that a CA resident cannot purchase an aircraft currently
registered inside the state and be exempt here. I phoned the tax board to
ask about this one, but I forget the exact response. But I do remember
throwing out consideration of California-based airplanes after that
conversation.

* Go on a nice coast-to-coast cross country trip during the exemption
period. You don't get the exemption if you don't make significant
out-of-state use of the airplane.

* After the 120 days is up, apply for the exemption before the tax board has
a chance to send you a tax return.

Good Luck!

Awesome! Thanks!

r.

"ZikZak" wrote in message
...
On 3/2/04 10:52 AM, in article ,
"Rob Thomas" wrote:

I'm curious if anyone has ever done this:

Purchase a used aircraft in California (my state of residency) and have
it
delivered by the dealer to Oregon. There it will stay for 91 days and
be
flown on occasion, then brought back down into California.

My real question here is "if I buy the aircraft in California and have
it
delivered to Oregon, in what state does my ownership begin?" The tax
law is
clear that as soon as I bring the aircraft into California, then I may
be
subject to use tax. So, is it my aircraft when I make the purchase in
California, or when I receive the aircraft in Oregon?

r.



I bought an aircraft about a year and a half ago. I live in Eureka, so
keeping it in Oregon was easy. I was successful in obtaining a sales tax
waiver. There is really no need to go to a professional; all you need to
do
is keep records. There are some things I kept in mind:

* Do NOT go for the straight 90-day exemption. Go for the
90-days-out-of-180
exemption, and stay out for 120 days to cover all bases. This prevents the
tax board from disqualifying you because of some single day on a whim. If
you apply for the straight exemption, the tax board will examine your log
books and say, "We think you *overflew* California during this here
flight.
Sorry."

* Keep PERFECT records of where the aircraft was located on EVERY DAY for
six months following the purchase, and actually keep the airplane out of
state. Make sure people see your airplane there too. The tax board
telephoned every airport at which I claimed to keep the airplane for more
than a single night to confirm that I actually had kept the airplane
there.

* I believe that a CA resident cannot purchase an aircraft currently
registered inside the state and be exempt here. I phoned the tax board to
ask about this one, but I forget the exact response. But I do remember
throwing out consideration of California-based airplanes after that
conversation.

* Go on a nice coast-to-coast cross country trip during the exemption
period. You don't get the exemption if you don't make significant
out-of-state use of the airplane.

* After the 120 days is up, apply for the exemption before the tax board
has
a chance to send you a tax return.

Good Luck!

ZikZak,

You mention a long cross country trip during the period it is out of state.
I had planned on getting up there to fly several times during its stay. Do
you, or anyone else, have an inclination as to how often the aircraft would
need to be flown up there for California to agree that it wasn't sitting up
there in storage?

r.

"ZikZak" wrote in message
...
On 3/2/04 10:52 AM, in article ,
"Rob Thomas" wrote:

I'm curious if anyone has ever done this:

Purchase a used aircraft in California (my state of residency) and have
it
delivered by the dealer to Oregon. There it will stay for 91 days and
be
flown on occasion, then brought back down into California.

My real question here is "if I buy the aircraft in California and have
it
delivered to Oregon, in what state does my ownership begin?" The tax
law is
clear that as soon as I bring the aircraft into California, then I may
be
subject to use tax. So, is it my aircraft when I make the purchase in
California, or when I receive the aircraft in Oregon?

r.



I bought an aircraft about a year and a half ago. I live in Eureka, so
keeping it in Oregon was easy. I was successful in obtaining a sales tax
waiver. There is really no need to go to a professional; all you need to
do
is keep records. There are some things I kept in mind:

* Do NOT go for the straight 90-day exemption. Go for the
90-days-out-of-180
exemption, and stay out for 120 days to cover all bases. This prevents the
tax board from disqualifying you because of some single day on a whim. If
you apply for the straight exemption, the tax board will examine your log
books and say, "We think you *overflew* California during this here
flight.
Sorry."

* Keep PERFECT records of where the aircraft was located on EVERY DAY for
six months following the purchase, and actually keep the airplane out of
state. Make sure people see your airplane there too. The tax board
telephoned every airport at which I claimed to keep the airplane for more
than a single night to confirm that I actually had kept the airplane
there.

* I believe that a CA resident cannot purchase an aircraft currently
registered inside the state and be exempt here. I phoned the tax board to
ask about this one, but I forget the exact response. But I do remember
throwing out consideration of California-based airplanes after that
conversation.

* Go on a nice coast-to-coast cross country trip during the exemption
period. You don't get the exemption if you don't make significant
out-of-state use of the airplane.

* After the 120 days is up, apply for the exemption before the tax board
has
a chance to send you a tax return.

Good Luck!

On 3/3/04 4:01 PM, in article , "Rob
Thomas" wrote:

ZikZak,

You mention a long cross country trip during the period it is out of state.
I had planned on getting up there to fly several times during its stay. Do
you, or anyone else, have an inclination as to how often the aircraft would
need to be flown up there for California to agree that it wasn't sitting up
there in storage?

r.


I don't really know, but I was intending to fly to New York and back anyway,
so that's what I did.

wrote in message
...
That sounds like a nice plane.... (For what it's worth, my tax bill
was only $4300)

I highly recommend you go talk to an aviation lawyer who understands tax
ramifications of what you are planning. There are some companies that
specialize in doing stuff like this, but I have no idea what they charge.

legal way for me to avoid paying ~$15,000, then I'll seriously consider
it.


Excellent advice. I am now expert, but here are some thoughts/rambings.

If you want a new plane, with new title, you will likely not be able to get
away with this ruse.

(when you do something to avoid a tax that would appear to be for no other
reason than tax avoidance, they can usually get you. You might try an out
of state corporation for rental, put it on leaseback elsewhere, and not ever
rent it out. Then bring it home and take it private after the failed
venture).

Another idea may be to buy a demo plane from an out of state distributor,
these can be titled new. Then lease the demo back to the dealer for a long
enough period to qualify. It won't be new, it will be broken in. New
title, nearly new plane, bonus depreciation for business use.

Just a thought.