Return-Path: Received: from imf18aec.mail.bellsouth.net ([205.152.59.66] verified) by logan.com (CommuniGate Pro SMTP 4.2.5) with ESMTP id 593598 for flyrotary@lancaironline.net; Thu, 06 Jan 2005 13:53:45 -0500 Received-SPF: pass receiver=logan.com; client-ip=205.152.59.66; envelope-from=atlasyts@bellsouth.net Received: from [65.11.186.107] by imf18aec.mail.bellsouth.net (InterMail vM.5.01.06.11 201-253-122-130-111-20040605) with ESMTP id <20050106185316.LQWC2042.imf18aec.mail.bellsouth.net@[65.11.186.107]> for ; Thu, 6 Jan 2005 13:53:16 -0500 User-Agent: Microsoft-Entourage/10.1.4.030702.0 Date: Thu, 06 Jan 2005 13:53:56 -0500 Subject: FW: [c-a] Orange County CA Cozy Tax Nightmare From: Bulent Aliev To: Rotary motors in aircraft Message-ID: In-Reply-To: Mime-version: 1.0 Content-type: multipart/alternative; boundary="B_3187864440_3288956" > This message is in MIME format. Since your mail reader does not understand this format, some or all of this message may not be legible. --B_3187864440_3288956 Content-type: text/plain; charset="US-ASCII" Content-transfer-encoding: 7bit All you guys on the left coast building planes, this may concern you. Bulent ------ Forwarded Message From: "lgjohnsonus" Date: Thu, 06 Jan 2005 01:44:05 -0000 To: canard-aviators@yahoogroups.com Subject: [c-a] Orange County CA Cozy Tax Nightmare This is kinda long- it's about taxes in Orange County, CA on my Cozy MKIV. It's relevant to anyone in OC, and may soon be relevant to everyone in CA, given the tax assessors are now sharing data. Basically, OC has just assessed me $90,000 for recreational labor. Read on, or skip... Some of you might remember my tussle with the O.C. CA Tax Assessor in 2003. They wanted to assess my plans-made, homebuilt airplane at $250,000! They agreed to reassess it at $37,400 (35K plus sales tax) after I presented a prior appraisal performed by Dick Ruttan showing that as the actual value. Well, they just changed their minds again. They have just valued it for 2005 at over $140,000. This despite knowing it was in a hard landing, after seeing proof of an insurance claim, being told that it is still disassembled in my hangar as it has been for more than a year, and knowing that this is far above market value for a perfect, flying airplane. The assessment goes like this: they figure the materials at $40,000 (today's market). They are then assessing the value of all the labor for the time it took to build, a total of a little over $90,000. They are supporting this estimate with the info on the official Cozy website on the time it takes to build, while ignoring the stuff on the cost of materials. Then, they add sales tax to the total. This is called cost-based assessment. It could apply to any hobby, art, or what have you. It is not based on market value, in other words. So, when you retire (or if you're retired already) spend all day polishing your car for 10 years and it will be worth several million dollars. They completely ignore their previous assessment, Dick's appraisal, the damage history, and that the plane is not even flying. If they pull this off it may spread through the rest of California like wildfire, and anyone with a productive hobby will all have to flee the state. They did this a few weeks ago, but waited until today (Jan 5) to spring it on me, so I'd be legally bound to the 2005 taxyear. The woman on the phone told me so- can you believe that? When I told her I'd fight it, she threatened to reassess back to 2003 as well. Anyway, I know of no other experimental anywhere in the country that has been assessed this way. This is close to a 4 fold increase. It makes you wonder- do these folks have any clue what this looks like? 250K to 37K to 140K? Is anyone going to believe them, given they can't give a single corroborating example? This is a brand new form of taxation. Help me out here, guys. I need some ammunition. We desperately need to get government at all levels involved to nip this in the bud, or California is going to put experimental aircraft dead in their sites. -- Len Yahoo! Groups Links * To visit your group on the web, go to: * http://groups.yahoo.com/group/canard-aviators/ * * To unsubscribe from this group, send an email to: * canard-aviators-unsubscribe@yahoogroups.com * * Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service . ------ End of Forwarded Message --B_3187864440_3288956 Content-type: text/html; charset="US-ASCII" Content-transfer-encoding: quoted-printable FW: [c-a] Orange County CA Cozy Tax Nightmare All you guys on the lef= t coast building planes, this may concern you.
Bulent


------ Forwarded Message
From: "lgjohnsonus" <lgjohnson@adelphia.net>
Date: Thu, 06 Jan 2005 01:44:05 -0000
To: canard-aviators@yahoogroups.com
Subject: [c-a] Orange County CA Cozy Tax Nightmare



This is kinda long- it's about taxes in Orange County, CA on
my Cozy MKIV. It's relevant to anyone in OC, and may soon be relevant
to everyone in CA, given the tax assessors are now sharing data.
Basically, OC has just assessed me $90,000 for recreational labor.
Read on, or skip...

Some of you might remember my tussle with the O.C. CA Tax Assessor in
2003. They wanted to assess my plans-made, homebuilt airplane at
$250,000! They agreed to reassess it at $37,400 (35K plus sales tax)
after I presented a prior appraisal performed by Dick Ruttan showing
that as the actual value. Well, they just changed their minds again.
They have just valued it for 2005 at over $140,000. This despite
knowing it was in a hard landing, after seeing proof of an insurance
claim, being told that it is still disassembled in my hangar as
it has been for more than a year, and knowing that this is far above
market value for a perfect, flying airplane.

The assessment goes like this: they figure the materials at $40,000
(today's market). They are then assessing the value of all the
labor for the time it took to build, a total of a little over
$90,000. They are supporting this estimate with the info on the
official Cozy website on the time it takes to build, while ignoring
the stuff on the cost of materials. Then, they add sales tax to the
total. This is called cost-based assessment. It could apply to any
hobby, art, or what have you. It is not based on market value, in
other words. So, when you retire (or if you're retired already) spend
all day polishing your car for 10 years and it will be worth several
million dollars.

They completely ignore their previous assessment, Dick's
appraisal, the damage history, and that the plane is not even flying.
If they pull this off it may spread through the rest of California
like wildfire, and anyone with a productive hobby will all have to
flee the state. They did this a few weeks ago, but waited until today
(Jan 5) to spring it on me, so I'd be legally bound to the 2005
taxyear. The woman on the phone told me so- can you believe that?
When I told her I'd fight it, she threatened to reassess back to
2003 as well.

Anyway, I know of no other experimental anywhere in the country that
has been assessed this way. This is close to a 4 fold increase. It
makes you wonder- do these folks have any clue what this looks like?
250K to 37K to 140K? Is anyone going to believe them, given they
can't give a single corroborating example? This is a brand new
form of taxation.

Help me out here, guys. I need some ammunition. We desperately need
to get government at all levels involved to nip this in the bud, or
California is going to put experimental aircraft dead in their sites.

-- Len








Yah= oo! Groups Links


------ End of Forwarded Message
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