From: RWolf99@aol.com
Message-ID: <af.3abd17e.2753ebc5@aol.com>
Date: Mon, 27 Nov 2000 11:54:29 EST
Subject: Sales Tax
To: lancair.list@olsusa.com
Reply-To: lancair.list@olsusa.com
Mime-Version: 1.0

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When I bought my Cessna out-of-state I had to pony up sales tax to 
California, where I currently reside.  They actually called it a "use tax" 
but it was the same amount as sales tax, less whatever I had already paid to 
the other state in which I purchased the plane (which was nothing in this 
case).  So my "use tax" on the 25-year-old Cessna 150 was about $1800.  The 
bill came due about the time of the first annual inspection (ouch!).

I understand that we incur a tax liability when we first register our 
finished kits.  I further understand that any sales tax we've already paid 
for components is applied to the tax bill, but since much of the stuff comes 
from Lancair (no sales tax) or from out-of-state mail order vendors (no sales 
tax) there's not much sales tax that we've already paid.

I heard a rumor when I lived in Phoenix that Arizona values a kitplane at 
$5000 and charges you sales tax on that.

The question is:  How much tax will I have to pay on a just-finished 360, and 
how can I minimize this?  How is the value determined?  How different are the 
rules in other states?

- Rob Wolf
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LML website:   http://www.olsusa.com/Users/Mkaye/maillist.html
LML Builders' Bookstore:   http://www.buildersbooks.com/lancair

Please send your photos and drawings to marvkaye@olsusa.com.
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