Return-Path: Sender: "Marvin Kaye" To: lml@lancaironline.net Date: Mon, 28 Feb 2005 10:11:45 -0500 Message-ID: X-Original-Return-Path: Received: from smtpauth08.mail.atl.earthlink.net ([209.86.89.68] verified) by logan.com (CommuniGate Pro SMTP 4.3c2) with ESMTP id 762232 for lml@lancaironline.net; Sun, 27 Feb 2005 22:27:02 -0500 Received-SPF: pass receiver=logan.com; client-ip=209.86.89.68; envelope-from=skipslater@earthlink.net Received: from [4.61.195.159] (helo=skipslater) by smtpauth08.mail.atl.earthlink.net with asmtp (Exim 4.34) id 1D5bY1-0002N7-TD for lml@lancaironline.net; Sun, 27 Feb 2005 22:26:18 -0500 DomainKey-Signature: a=rsa-sha1; q=dns; c=simple; s=test1; d=earthlink.net; h=Message-ID:Reply-To:From:To:References:Subject:Date:MIME-Version:Content-Type:X-Priority:X-MSMail-Priority:X-Mailer:X-MimeOLE; b=BuoO0xu5nQTs714jWyjgRQU+Wjox8xdbKJuaH+AT2Rb7SJw5s5NIXRc+xsq8FKD2; X-Original-Message-ID: <000a01c51d45$6adf5fa0$6401a8c0@mshome.net> Reply-To: "Skip Slater" From: "Skip Slater" X-Original-To: "Lancair Mailing List" References: Subject: Re: [LML] (California Use Tax X-Original-Date: Sun, 27 Feb 2005 19:27:20 -0800 MIME-Version: 1.0 Content-Type: multipart/alternative; boundary="----=_NextPart_000_0007_01C51D02.5B21A980" X-Priority: 3 X-MSMail-Priority: Normal X-Mailer: Microsoft Outlook Express 6.00.2800.1106 X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2800.1106 X-ELNK-Trace: cbee950bdf563876c8ad50643b1069f8239a348a220c2609c4f86393f9bcd8a4ef7f162de6af2d31350badd9bab72f9c350badd9bab72f9c350badd9bab72f9c X-Originating-IP: 4.61.195.159 This is a multi-part message in MIME format. ------=_NextPart_000_0007_01C51D02.5B21A980 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Gary, I had to deal with the California use tax when I bought my ES kit. = Bottom line, yes, you owe use tax equivalent to your local sales tax for = anything you bought out of state. In my case, I paid over $4K in tax = for my kit cost. When I asked about the other components that would = later go into the plane, the person I spoke to at the board of = equalization wasn't interested and said as far as he was concerned, I = was in compliance. I think he only wanted to see the Bill of Sale from = Lancair to determine the tax due. You have one year from the date of purchase to report your purchase = and pay the tax before penalties and interest begin to accrue. In my = case, I exceeded that but was able to get excused from the penalty part = by writing a letter stating that I'd been misinformed by someone else at = the BOE (which I actually was) that the tax wasn't due until the = airplane was flying. That's true for the property tax, but not the use = tax, which is where the confusion arose. There's an eight year statute of limitations for the state to come = after you for not paying the tax. I didn't want to risk getting nailed = by playing some of the shell games I'd heard some other guys were doing, = so I just paid it and deducted it from my income that year. Since = finishing my plane over two years ago, I've deducted the ripoff property = taxes I have to pay on the plane every July. As you well know, if you = like taxes, California's the place to live. To contact the California Board of Equalization, you can call them at = 800-400-7115 or check their web site at www.boe.ca.gov. Once there, you = can do a search for Publication 79A, which pertains to aircraft = purchases. It doesn't specifically address kitplanes, so you'll = probably need to talk to someone there to get that figured out to their = satisfaction.=20 You may contact me off-list if you have any particular questions, but = keep in mind I'm just a dumb airline pilot so I can't dish out too much = tax advice. Skip Slater N540ES ------=_NextPart_000_0007_01C51D02.5B21A980 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Gary,
   I had to deal with the = California use=20 tax when I bought my ES kit.  Bottom line, yes, you owe use = tax=20 equivalent to your local sales tax for anything you bought out of = state. =20 In my case, I paid over $4K in tax for my kit cost.  When I asked = about the=20 other components that would later go into the plane, the person I spoke = to at=20 the board of equalization wasn't interested and said as far as he was = concerned,=20 I was in compliance.  I think he only wanted to see the Bill of = Sale from=20 Lancair to determine the tax due.
   You have one year from the = date of=20 purchase to report your purchase and pay the tax before penalties = and=20 interest begin to accrue.  In my case, I exceeded that but was able = to get=20 excused from the penalty part by writing a letter stating that I'd = been=20 misinformed by someone else at the BOE (which I actually was) that the = tax=20 wasn't due until the airplane was flying.  That's true for the = property tax, but not the use tax, which is where the confusion=20 arose.
   There's an eight year = statute of=20 limitations for the state to come after you for not paying the = tax.  I=20 didn't want to risk getting nailed by playing some of the = shell games=20 I'd heard some other guys were doing, so I just paid it and = deducted it=20 from my income that year.  Since finishing my plane over two = years=20 ago, I've deducted the ripoff property taxes I have to pay on the = plane=20 every July.  As you well know, if you like taxes, California's the = place to=20 live.
   To contact the California = Board of=20 Equalization, you can call them at 800-400-7115 or check their web = site at=20 www.boe.ca.gov.  Once there, = you can do=20 a search for Publication 79A, which pertains to aircraft=20 purchases.  It doesn't specifically address kitplanes, so you'll = probably=20 need to talk to someone there to get that figured out to their=20 satisfaction. 
   You may contact me = off-list if you=20 have any particular questions, but keep in mind I'm just a dumb airline = pilot so=20 I can't dish out too much tax advice.
   Skip Slater
   = N540ES
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