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Hung - I found where Georgia had a house bill in 1996. I think it passed, but don't know for sure. It reads a little different than yours since it says 40 yrs of age. Everything else is similiar. I called a friend of mine who is on the tax assessor board and he said that they had a meeting scheduled tomorrow. He is going to let me know what he finds tomorrow afternoon...

Fingers crossed that bill passed!!! They would actually owe me for the last two years.

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....

I haven't heard of a Use Tax on mail-order items, but there's a Sales Tax on items purchased online if the seller has a "physical presence" (physical store, warehouse...) in the state of the buyer. Not all online sellers are diligent about collecting that sales tax, but big companies like Amazon, Target, etc. do. I have to pay sales tax when buying from Amazon because they have a warehouse in KS.

In my case, I live in Missouri and bought the kit from a Missouri company, so I've already paid Missouri sales tax. The engine (Jab 3300) will be another matter. It will probably be purchased from a company in Tennessee and shipped to Sullivan, Missouri. I don't know how that will work out.

You'll likely have to pay the 4.225% Use Tax. As it says on the Missouri web-page, "the purchaser is responsible for remitting the tax to the department if the out-of-state seller does not collect use tax on the transaction."

Here's the link to Missouri's Sales & Use Tax web-page:

http://dor.mo.gov/tax/business/sales/

Use Taxes are little known, but with greater and greater use of the internet for ordering stuff (eBay, Amazon, etc.), states are working harder to collect this revenue.

Kansas has a "Compensating Use Tax":

http://www.ksrevenue.org/perstaxtypesccu.htm

Individual Kansas consumers buying goods in other states or through catalogs, mail-order companies, over the Internet, or from television, magazine or newspaper advertisements must pay Kansas Consumers Compensating Use Tax on these purchases if the seller does not charge a tax of at least 5.3%

Frankly, because Use Taxes rely upon the consumer to 'turn themselves in' they are relatively unknown. They usually come up when the state comes across purchases through other means (inspections, registrations, property-tax filings, etc.)

Now, before everyone jumps on my case about being a traitor or goody-two-shoes, let me say this: I'm only the messenger. Lots of people buy stuff mail-order and never pay the Use Tax. That's because the state currently has no way of knowing that you bought the stuff. But if you buy a kit-car or airplane or boat by mail-order, then be aware that when the item is brought to the state's attention (i.e. - registered), then the question of taxes will come up. Paying the Use Tax at time of purchase is one way to avoid penalties and interest later.

A gorgeous engine!

Mike,

I would be very interested in this bill as well. Please share your findings!!!

Bill - I found that HB 1667 was voted and approved in the house but never made it to the voters. I did contact Governor Sonny Perdue's office and sent this to him via email:

Dear Governor - Like you, I am also a Private Pilot. I own a 1966 Cessna 150F that my family and I fly for recreation. I found a House Bill from around 1996 that I would like for you to consider re-introducing. It is to eliminate the ad valorem tax on antique aircraft that are 40 years of age and that are flown for personal use, not for hire. Other states have a similar rule in effect, and I would very much like the opportunity for our state to consider this also.

The link to the bill: http://www.legis.state.ga.us/legis/1995_96/leg/fulltext/hb1667.htm

Blue Skies & Tail Winds,

Mike Castleberry
Cordele, GA

PS: Congrats on your Rotorcraft rating!

I also spoke with someone in his office and left a vm for a return call. Nothing ventured, nothing gained!

My local tax assessor board member indicated to me that "if" this bill were to be re-introduced and the voters had a chance to decide, it would be a resounding NO. He is ignorant to General Aviation and views us as having enough money to own an airplane therefore we should pay the taxes. Then he told me that I should be really happy with my valuation being listed at 20K for my Cessna. I told him that I wanted to have it appraised and expected them to adjust my value down to actual worth. He really dumped some fuel on my little fire....

Thanks Mike!

I will send a similar request to Gov. Perdue. I have heard some real horror stories regarding local Tax assessors....some things really don't change!