What's new
Van's Air Force

Don't miss anything! Register now for full access to the definitive RV support community.

Tax question

jaydenchow

jaydenchow

I'm New Here
Hi everyone, I recently bought a flying rv-7A in March, I was wondering if anyone knows if it would get taxed this tax year or next. From what I’ve been reading the planes get assessed on January 1st, since I’ve only had the plane for less than a month does that mean I don’t have to pay taxes on it till next year?

Thanks!
 
Your tax payment is due on or before the last day of:

  • The month following the month you were contacted by the CDTFA, or
  • The twelfth month following the month in which you purchased the aircraft, whichever period expires first.
Penalty and interest charges will begin to accrue once the due date has passed.

The use tax rate is the same as the sales tax rate and is based on where you principally hangar the aircraft.
 
As partially noted in post #2, you are subject to two taxes:
1. The sales/use tax, noted in post 2. You can contact the state, or pay it on the use tax line on your CA income tax return. I can’t confirm when it’s overdue.
2. County property tax. You have this one correct, it’s assessed to the owner of record on Jan 1, payable in aug, so you won’t owe until aug 2025 and every year after that. It’s very close to 1% of assessed value. Oh, and if you’re renting a hangar from a municipal airport, you’ll get the property tax bill for the hangar, too.
 
From what is published on the CDTFA site, the CA use tax is due either when billed or by the end of the 12th month after you purchased the plane (presumably whichever is earlier). There is a rather hefty penalty (10% I believe) if they believe it is late.
 
Has anyone been audited on CA Use Tax for all the items purchased from various sources? Vans charges sales tax now so that is easy.
But all the various other items might be hard to document.
 
If this is a flying plane, check your states tax regulations very carefully. There are a number of states that charge zero sales/use tax on the casual sale of GA aircraft. I know that is the case in NY and OH. This is different then building, and registering a kit.
 
Last edited:
This is great information and is correct, thank you for the information. To many this may not be common knowledge.
AZ also has the casual sale exemption.

mstrauss said:
If this is a flying plane, check your states tax regulations very carefully. There are a number of states that charge zero sales/use tax on the casual sale of GA aircraft. I know that is the case in NY and OH. This is different then building, and registering a kit.
Click to expand...
 
You must log in or register to reply here.
Back
Top