<<<<<<<<<<<<<<<<--->>>>>>>>>>>>>>>>
          <<  Lancair Builders' Mail List  >>
          <<<<<<<<<<<<<<<<--->>>>>>>>>>>>>>>>
>>
> Also, I would like to know about the sales tax question about Kits and
> what
> has happened in the past.
> Basically I would like to know what others have done not done, what
> problems
> lie out there ?
Jeff -
Virginia is probably typical of most states regarding titling (sales) tax on
aircraft.
They (and most other states) have mechanisms to collect titling taxes on
motor vehicles when they're purchased. Virginia assesses a 2% titling tax on
aircraft, based on the value of the plane. Their mechanism for collecting it
is through an annual registration sticker that's required on all aircraft
hangared in the state. The sticker itself costs only $ 10, but requires that
the aircraft be registered with the state (and the titling tax paid).
In the case of an amateur-built plane, you can minimize the amount of the
tax by paying it shortly after you receive the kit. It's amount is then
based only on the price of the kit. You would, however, have to obtain the
FAA registration number at that time, which is no problem.
Virginia also happens to be one of only eight states that require a minimum
liability insurance policy on aircraft and that's also enforced through the
annual registration sticker. However, the sticker it isn't required until
the plane is operational, so insurance isn't required until that time.
Should you wait until the plane is nearly complete, then the titling tax is
based on the value of the complete airworthy plane and obviously much
higher.
Bill Rumburg
N403WR  (Sonic bOOm)
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
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.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>