2. Illinois gets N number data from the FAA and if you got a number bef= ore=20 finishing the kit, the state will request that you pay tax on the project.

3. It is usually beneficial to pay the tax on the unfinished and number= ed=20 kit because its value is low. N-numbering a finished project requires=20= that=20 you pay the tax on the value created from all the stuff you put in it a= nd=20 didn't pay such tax - such as out of state purchased items like an engi= ne=20 or avionics panel.

Any information given here is more than 5 years old and may not cover y= our=20 situation since the state has become quite aggressive about tax=20 collection.

Good Luck,

Grayhawk

In a message dated 8/13/2008 1:55:20 P.M. Central Daylight Time,=20 troneill@charter.net writes:

<= FONT=20 style=3D"BACKGROUND-COLOR: transparent" face=3DArial color=3D#000000 size= =3D2>

This is a kind of=20 survey.

It is regarding=20= Illinois=20 Dept. of Revenue's apparent attempt to tax KITS long before they become=20 'aircraft'. Technically, the creation of an 'aircraft', according=20 to the FAA regs I read, occurs when an Airworthiness Inspection=20 Certificate is awarded, making that date the Date of Manufacture... of an=20 'aircraft', where none existed before.

Since many, many kits= NEVER=20 become 'aircraft', for the IL Dept. of Revenue to apply 'Aircraft Use= =20 Tax' to them by pretending the KITS are 'aircraft' seems unfair,=20 especially since if you purchase someone's KIT, the FAA Form 8050-2=20 Bill of Sale is required by the FAA to be modified by crossing out th= e=20 word 'AIRCRAFT" and printing above/below it the word KIT ... because it is= not=20 an aircraft.

The confusion in my c= ase=20 (1985 kit) stems partly from the old FAA practice of letting hopeful build= ers=20 request an N-number (like, more than 15 years ago) even before a proj= ect=20 was started or a kit started. Further confusion was introduced later when=20= the=20 FAA began requiring KIT manufactures to apply N-numbers to sold=20 KITS!

Logically, the Number= s =20 are really issued to persons, and N-numbers are now being referenced= to=20 some project or KIT, until a project passes an Airworthiness Inspection an= d=20 its builder/Manufacturer gets its Airworthiness certificate.

I'd be interested to=20= hear the=20 experience of anyother Illinoisan's experience buying someone's pre-number= ed=20 kit.

Terrence

L235/320 N211AL

Looking for a car that's sporty, fun and fits in your= budget? Read reviews on A= OL Autos.

-------------------------------1218663063--