Mailing List lml@lancaironline.net Message #48396
From: <Sky2high@aol.com>
Sender: <marv@lancaironline.net>
Subject: Re: [LML] Re: taxing Illinois
Date: Sun, 17 Aug 2008 12:12:23 -0400
To: <lml@lancaironline.net>
Redhand,
 
Good Luck.
 
I believe the sales tax is the vehicle use tax based on the value of the vehicle.  As I said, the state has become very aggressive and it becomes useful to investigate the way in which you can pay the least tax.  It was different even just a few years ago.
 
Grayhawk
Saving up tea bags for the revolution.
 
In a message dated 8/15/2008 3:26:26 P.M. Central Daylight Time, troneill@charter.net writes:
Grayhawk,
 
Yes indeed, what you said. We fully intend to pay what's legal, sales-tax-wise. 
Regarding Use Tax, the question is, when does a KIT become an 'AIRCRAFT'.
The FAA Form 8050-2 which the FAA requires to be modified when buying a KIT, tells the applicant to 'cross out the word AIRCRAFT and print on the title of the form the word KIT'.  One would think this should be obvious evidence that the FAA insists this is a KIT, and is NOT and AIRCRAFT.
The Use Tax law states that the tax is applicable to 'aircraft', as defined by the FAA.
The FAA regs, in detail, further say the kit builder is the 'manufacturer',.  That's me.  And that the 'date of manufacture' is the date of the Airworthiness Inspection.  We ain't had none yet... but soon.
So, eventually whoever buys the plane from manufacturer (me) will have to pay Use Tax. But it shouldn't' be the manufacturer; does Cessna?
 
At least that's the law, theoretically.  We're checking into the applicaton of it, with the makers of the laws.
 
Redhand 
 
----- Original Message -----
Sent: Wednesday, August 13, 2008 10:29 PM
Subject: [LML] Re: taxing Illinois


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