I too was considering building a 601XL when I retire in 4 years. But a few things changed my mind:
3. The state of KS taxes an airplane based on its market value. If I spend $30K on a kit, $30K on engine and instrument, and the plane is worth say $85K when completed, they'll tax it based on $85K. The annual property tax on a $20K C152 is over $1000. I don't want to pay over $4000 of airplane property tax per year.
Another thing some people forget is Use Tax (i.e. - the equivalent of Sales Tax, but it is paid by the consumer and not collected by the retailer). It's not uncommon for someone to buy a kit, engine, instruments, parts, etc., all by mail order. They build the airplane over the next couple of years, then register the plane.
Along comes the tax assessor. He sees a new plane appear on his home state registrations, so he pays a friendly visit - have sales taxes been paid on the purchase of this airplane?
"But I didn't buy it from anyone. It all came in by mail-order and I built it myself."
Well, then, can you show me proof of having paid Use Tax on the mail-order purchases? No? Hmmm, so I'll have to bill you the Use Tax on the purchase of $85,000 of parts, and then charge you interest and penalties for having failed to pay such tax for the past few years....
