State Sales Tax

Larry I would disagree and call it services for dues paid. The citizen pays taxes and the State, or Federal Government are supposed to decide and prioritize what services should be provided...including 'gummint cheese' in return.

The hope is that the government in it's wisdom is able to engage people who are experienced, capable and have the expertise to do this in an efficient manner. A hope sometimes dashed by some odd decisions made at the top. An example. For years Jet A1 even though it cost more than road diesel was taxed 2.5 cents gallon less. Congress feeling the Government needed protection from truck operators who might try and save the 2.5 cents a gallon, under a fuel fraud bill made FBO's pay highway diesel tax rates, while only charging jet fuel tax rates to their customers. This tax then deposited into the Highway Trust Fund. In order to reclaim that money FBO's must prove that the fuel sold was for aviation purposes. Once the refund is sought and repaid, the remaining tax money then moved to the Airport and Airway Trust Fund.

But the paperwork is such a hassle that many FBO's don't bother, and forfeit the money, sometimes passing the cost on to their customers in other ways. That however means that not only do they lose the refund, but the reminder, an estimated $50 million annually, then does not move to the Airport and Airway fund but remains in the Highway Fund.

Jet A1 with a lower octane rating and less lubricity is bad for truck engines. It gives a worse performance and higher wear, it's higher sulfur content can gum up particulate filter systems and cause shutdowns. It makes little sense to do it and there was no real evidence that this type of fraud was even occurring. Aviation groups have been long hoping that something would be done about changing it but Congress has been reluctant given growing shortages in the Highway Trust Fund. Aviation groups continue to be increasingly concerned about the potential loss of $500 million to the national airspace system over the next decade, if nothing is done about it. Perhaps our 'widows mite' is helping redress the situation by helping pay for the airspace services we are using.

People at the top in State and Government can and do make decisions for the citizens that don't always achieve what was intended, but that's how the system works...or, sometimes doesn't.
 
Not sure if this is adding anything to the conversation but...

The State of Florida has had a sales tax at least for the 25 years I have been here. For that same period they have also had a use tax which is the same tax, except it is paid by the Florida tax payer when a purchase is made from someone who for whatever reason can not collect the tax at the time of the sale. (Usually from out of state sources not registered in the state or as used parts from someone not in the business of selling used parts.)

If an aircraft is purchased new, sales tax is paid. If an aircraft is purchased used, the seller is usually not registered to collect sales tax so the buyer becomes responsible for the payment of tax. The issuance or transfer of the N number provides an opportunity for the state to be made aware of the transaction and ask for assurance that the tax has been paid.

An aircraft built from parts, kits, or rebuilt may or may not have had the appropriate sales tax paid on those parts so at the time of registration they ask for proof that the buyer/builder paid sales tax on the parts when purchased.

If he did not pay the tax, the unpaid tax is identified and payable at that time.
 
They sent me a bill. I called ,and spoke with the nice Tax Lady, and told her I built it from scrap parts I got from work. My Tax was $35.00 . Only Paid one time.
 
IMHO paying for goods and services is not in any way "Welfare". but what do I know ? Stan V PRA 41973
 
Paul - Although it is true that there are various means of paying for airports and allied services, that in no way changes the definition. When you use public goods and services (airports, roads, libraries, police, fire, etc.) you are receiving welfare...

Larry, that's an odd and very broad definition of welfare. It includes the US military, the police protection you receive while sleeping in your bed, or the painted lines on the highway that keep (sober) people from driving over your lawn, all of which are paid for by you. By your definition, every government service is welfare.

For most of us, I think "welfare" is defined as government subsidies for goods or services which are traditionally considered to be personal responsibilities. I don't consider police and fire protection, or any other service provided equally to everyone to be welfare. I also don't consider aviation infrastructure and support paid for by a special tax on aviation to be welfare. The portion of aviation infrastructure paid for out of the general fund DOES meet my definition of welfare.

I riled some friends during the height of the general aviation user fee debate when I pointed out that using general fund dollars to support ATC and airports was a form of welfare, and that if user fees could be equitably determined and collected, that would be more in line with my personal philosophy. To argue otherwise makes us just another special interest group looking for a handout.

The airlines argued that the extra costs would get passed on to consumers in the form of higher costs for any goods or services delivered by aviation. I'm fine with that! There's no logical reason for the taxpayers to subsidize my choice to have an order delivered by air vs. ground. There's also no reasonable basis for taxpayers in general to fund all the stuff needed to carry on my choice of a hobby.

I do believe that if user fees are imposed on aviation, there needs to be some mechanism to provide choice, so the tendency of government to bloat and mismanage resources has some check in place. And I fear that won't happen because those who run government seem to want control over our lives even more than they want money.
 
Paul, I'd vote for you.
 
@Paul - The problem with your definition is that "traditionally considered to be personal responsibilities" is meaningless as it begs the question "by whose tradition"?

And it is not my definition. It is, as I said, the economic definition of public goods and services. You might refer to:
Masclet, David; Villeval, Marie-Claire. Social Choice & Welfare. Oct2008, Vol. 31 Issue 3, p475-502.
Bierbrauer, Felix; Sahm, Marco. Journal of Public Economics. Aug2010, Vol. 94 Issue 7/8, p453-466.
Bai, Chong-En; Lu, Yi; Tao, Zhigang. Economics Letters. May2009, Vol. 103 Issue 2, p72-74.
Dagenais, Denyse L. European Economic Review. May77, Vol. 9 Issue 2, p123-149.
Pashardes, Panos; Pashourtidou, Nicoletta. Empirical Economics. Dec2011, Vol. 41 Issue 3, p865-885.

Well, it is a lengthy list for it is a very common fundamental premise in economics.
But an alternative popular meaning has arisen that refers to the public goods and services that OTHER people get with the implication that it is somehow wrong.

The economic definition is quite simple - public goods and services.
Yes, we each make some contribution to paying for them. Whether we want them or use them or not.
This is true of ALL welfare (public goods and services) in that they are all paid for by someone.

My point is that almost everyone wants more welfare (public goods and services) when it is to their benefit.
But few want to pay for welfare that they don't personally use. I for one, have never used a fire service. But recognize that it is a useful public service for the good of the community.
It gets cloudier when dealing with things like airports. A very small segment of our society benefits directly from airports that serve GA. It is unrealistic for anyone to suggest that their av gas tax pays for their fair share of the airport.

I suggested that this was a teaching moment. I used it. Some may also have used it as a learning moment.
Anyway, we have wondered far off the track of sales tax.
Signing off.
 
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Larry, your sounding like a pol...or a lawyer.
 
Just trying to raise the level of discussion a bit.
My bad. Forgot the venue.

YeeHaw!
Let's go shoot us sum squirels!
'merica for 'mericans an none a dem damn Yurropean ways.
How 'bout that damn Obama?

Everybody happy now?
 
In Colorado, aircraft parts are EXEMPT from sales tax by law weather you buy one AN bolt or a kit full of parts. Factory built aircraft (new or used) are subject to the 2.9% state sales tax as a sales or use tax.

The FAA does not notify the states of registrations per se. The aircraft registration records are available to all government agencies. The states check the FAA records hunting for revenue.
 
Oregon Dept. of Aviation

Oregon Dept. of Aviation

After several years of having my aircraft located in Oregon (and registered w/ the FAA), where I live, the state caught up to me w/ a letter, informing me of that $40 I am to pay.

I called them up, stating that the aircraft was now hangared in Washington state, although I live in Oregon. They pointed out that this "tax" applies to all aircraft flown in Oregon, irregardless of where it is stationed. I thought only Florida was trying that!

But, they are so dis-organized at this state level, they haven't sent another bill the last couple of years...

I'm sure they'll somehow find this out now that I've posted it here...
 
Yep!

Yep!

Today, I received a post card from the state of Oregon Dept. Of Aviation. You guessed it. The very next day, 07-03, after I wrote the above post (on 07-02), they sent out a renewal notice!
 
Kev, it has been warned that certain people besides registered users use this forum.
 
Can't tell ya for Florida, but in Georgia here is what I have learned - probably similar in most states.

YES, there are sales taxes due on all new and used item purchases - ATV, motorcycles and cars & trucks (of course), aircraft of all types, boats, jet skis, etc.

There is a way around it though. If you BUILT the gyro, you can just tell them you built it from parts, and that way you have paid sales taxes for the parts purchases as you went along! No big whammy all at once at the end.

Some states have taxes that are due yearly on aircraft, and in GA it goes to the county where they catch you in the hangar after an inspection. BUT - you can get around that also, if you take off the prop or the rotor - now it is non-flying, and is for use as "parts" only!

I pay county hangar aircraft tax on one gyro, even though there are three in my hangar. I only fly one, the other two are down for major engine repairs.
 
10% per month penalty in Florida

10% per month penalty in Florida

And, in Florida, if you fail to pay your sales tax, you also receive a 10% per month penalty. Yes, 120% per year. Fortunately, this is up to a maximum of 50% but that's still pretty hefty.

:censored:
 
In Louisiana, you only pay sales tax on an aircraft purchased from an aircraft dealer.
If it's purchased from another individual, it's considered a casual sale and no sales tax is due.

My Cessna was purchased from an individual, and my Bensen was built from locally sourced materials.
No taxes due.
 
So we should all go to LA to exchange gyros for money?
Sounds right to me!
 
Georgia also does not collect sales tax on aircraft when purchased from an individual, It will hit you up if the faa regestration is currently in the name of any (LLC or Inc) or bought through a dealer. Stan PRA 41973

Wrong!...

I bought my Brantly for $25,000, as reported on the FAA Bill of Sale, from Phil Colaco, and INDIVIDUAL who lived in Helen (White County) the FAA had it registered to "Phil Colaco." I registered it with the FAA in my name, as an INDIVIDUAL.

Two months later, I got an unexpected sales tax bill for about $2000+ from the Georgia Department of Revenue.

This was in 2001 +/-.

Bartow County sent me a "Business and Personal Property Tax" Declaration Form for annual Ad-Valorem tax, requiring me to accurately report the aircraft's true value. They gave an estimate based on their "book value." The form came with a cover letter that cautioned me that "accurate reporting" included true current avionics or special equipment currently on the aircraft, or new paint or interior.

All of this was in spite of the fact that the aircraft was kept at my house and rarely flown to the airport.
 
geez, what happened to the good ol days of 5 gallons of fuel, one seat and a bird that weighed 253.999999 pounds. :) If you can't beat em join em.
 
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