Sales tax due from seller?

writes:

I suspect Washington State is typical in how they handle sales tax on
big-ticket items like cars and airplanes. If you buy in-state from a
licensed dealer (or broker), the dealer collects sales tax and pays it to
the state. If you buy in-state from an individual or a corporation that is
not a dealer, you (the buyer) are responsible for paying sales tax to the
state.

As another data point, the great state of Virginia requires that sales
tax be paid by the purchaser of an aircraft, either through the in-state
dealer (if purchased from such an entity) or directly to the state by
the purchaser if purchased from a different seller. Additionally, if
the aircraft is purchased out-of-state by a nonresident and then brought
into Virginia the owner is expected to pony up the difference between
any sales tax paid elsewhere and what would have been paid had the purchase
been made by a Virginia resident.

I've been audited (twice!) by the Virginia Department of Revenue on this
point; my '78 182RG was purchased in Tennessee when I lived there, and I
paid Tennessee sales tax on it. The first time I was audited (~1996)
I had to dig up the 18-year-old paperwork to prove that the tax was
paid; the second time (last year) all that it took was a telephone
call to the state auditor who apologized for the duplication, blaming
it on the state's records that had transposed the bird's vintage to
make it look like an '87 model.

The auditor also told me that the DOR will ask the Legislature to sunset
any attempts to collect sales tax on aircraft purchased more than 10
years previously, regardless of the amount (if any) of tax paid to
other jurisdictions.

Joe Morris

On Thu, 19 Feb 2004 03:09:35 GMT, "Travis Marlatte"
wrote:

"Maurice Givens" wrote in message


I'm based in Illinois also. The buyer is liable for the sales tax.
If the aircraft is purchased from an indivual (rather than a broker or
dealer, etc.) the sales tax is waived. Of course the standard
disclaimers apply, you know, check with a tax consultant, attorney,
etc.

Nope. That was the rule change last year. Now, in Illinois, the buyer owes
use tax even when buying from an indiviual. Again, I'm not a tax expert.

Yep - Illinois use tax is 6.25% - details here.
http://makeashorterlink.com/?S17032377

First, I'd like to thank the State of Illinois for effectively
reducing the value of my aircraft by about 4%. (I'm assuming one can
write-off the use tax).

It's obvious why this tax was passed - in a down economy, it was a
chance for the State to pick up some 'free' revenue. How big is the
aircraft owner population? Certainly not big enough to fight passing
this kind of bill.

Use tax is such a huge scam. Every time a plane is sold, it generates
the 6.25% revenue for the State. I'd never thought of it before, but
use tax must be a tremendous deterrent to purchasing/selling a
high-end aircraft. I couldn't imagine paying $20k use tax on a used
Cirrus.

Worse, reading through the bill (linked above) little of the money
will flow back into the State's aviation system. 80% of the tax goes
to State's general revenue fund. 20% goes to a Local Government
Distributive Fund, which probably pays for a million other things
before paying for new runways and/or airport improvements.

-Nathan

Probably pays to fight airport expansion ;-(

Nathan Young wrote:

Worse, reading through the bill (linked above) little of the money
will flow back into the State's aviation system. 80% of the tax goes
to State's general revenue fund. 20% goes to a Local Government
Distributive Fund, which probably pays for a million other things
before paying for new runways and/or airport improvements.

-Nathan

--
--Ray Andraka, P.E.
President, the Andraka Consulting Group, Inc.
401/884-7930 Fax 401/884-7950
email
http://www.andraka.com

"They that give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
-Benjamin Franklin, 1759

"Nathan Young" wrote in message
...
On Thu, 19 Feb 2004 03:09:35 GMT, "Travis Marlatte"
wrote:

"Maurice Givens" wrote in message


I'm based in Illinois also. The buyer is liable for the sales tax.
If the aircraft is purchased from an indivual (rather than a broker
or
dealer, etc.) the sales tax is waived. Of course the standard
disclaimers apply, you know, check with a tax consultant, attorney,
etc.

Nope. That was the rule change last year. Now, in Illinois, the buyer
owes
use tax even when buying from an indiviual. Again, I'm not a tax
expert.

Yep - Illinois use tax is 6.25% - details here.
http://makeashorterlink.com/?S17032377

First, I'd like to thank the State of Illinois for effectively
reducing the value of my aircraft by about 4%. (I'm assuming one can
write-off the use tax).

It's obvious why this tax was passed - in a down economy, it was a
chance for the State to pick up some 'free' revenue. How big is the
aircraft owner population? Certainly not big enough to fight passing
this kind of bill.

Use tax is such a huge scam. Every time a plane is sold, it generates
the 6.25% revenue for the State. I'd never thought of it before, but
use tax must be a tremendous deterrent to purchasing/selling a
high-end aircraft. I couldn't imagine paying $20k use tax on a used
Cirrus.

Worse, reading through the bill (linked above) little of the money
will flow back into the State's aviation system. 80% of the tax goes
to State's general revenue fund. 20% goes to a Local Government
Distributive Fund, which probably pays for a million other things
before paying for new runways and/or airport improvements.

-Nathan


Yup. God bless governor Rod Bla****usabunch...