State aircraft registration

We have a dozen proposed constitutional ammendments on our Nov 6 Florida ballot. Number 3 is interesting and I'm wondering what the other 56 states are doing in this area. Briefly, it says that "Motor vehicles, boats, airplanes, trailers, r.v.s & mobile homes shall be subject to a license tax for their operation, but shall not be subject to ad valorum taxes." These are now subject to registration fees (non deductable with IRS) and sales tax (deductable) on vehicles, boats,etc. Aircraft are not included. Just pay the sales tax.

I thought there may be a lawyer or two in the state legislature to help draft this turkey. They should know that the FAA is narrow minded in that only they may license aircraft and airmen. I was a plane owner in Maine in the 60,s and that state required pilots to be state licensed and aircraft to be registered. Aircraft were registered along with motor vehicles,etc. They charged by weight class, so Champs were cheaper than Chevys. However, it had to be paid to the town where you based and not your home town. If you moved your plane, the new town wanted their cut. A "state pilots license" cost three bucks per year. They put four blank forms on a mimeographed 8 X 10. Participation was spotty. Said to be needed in case some pilot went rogue and didn't pay his hangar rent, landed on the beach.or commited some other non FAA violation. Finaly, the FAA got into it and informed the state to shut down the license programs because they and they alone regulated aircraft and airmen.

Florida airplane owners may feel discriminated and singled out because gliders, rotor craft, balloons and direct lift aircraft are off the hook for the proposed license tax. The proposed ammendment is so poorly written that it should not survive the courts.

Bob

Ohio has a registration fee, which is $15 per seat per year.

Depending on who and what you purchase, you are must likely subject to a sales tax. For experimentals, they will send you a letter requesting payment once you register your aircraft. It took about nine months for them to send me mine. They also request copies of all your invoices so ensure you are paying the appropriate sales tax. They trust that everyone turns in ALL their receipts. ;)

Virginia has an Aircraft License fee - $5 per year. There's a one time Sales/Use tax of 2%, and depending on the county, some have to also pay propety tax (I'm lucky in that my county, Prince William, exempts aircraft from property tax).

Since it has been many many years since I studied Latin, I had to Google what "ad velorum" means. If I understand your legislative wording correctly, the proposal would make airplanes only subject to a registration tax and block a tax based on value. That sounds like a win. I am not sure what the functional difference between a registration fee and a license tax is, but I will guess that anything named "tax" at the state level is deductible at the federal level.

So your "turkey" may be a good thing.

Best of luck,

Wes
N78PS

Connecticut used to have a yearly personal property tax on aircraft, levied by and paid to the town the aircraft was based in, but they dropped than and now have a yearly registration fee based on aircraft weight, also payable to the town.

The paragraph containing "airplane" is in the current constitution as written. Amendment 3 strikes the words "state revenue limitation," so it appears that if Amendment 3 passed there would be no new fee on airplanes.

Current Florida constitution: http://www.ballotpedia.org/wiki/inde...a_Constitution

There's a reason I half-jokingly say that I want to register my aircraft under the auspices of a non-profit organization. LOL

Virginia charges $5 for non-commercial use, $10 for commercial (rentals). The State Dept. Of Aviation are good guys, I don't begrudge them the $5.
Failing to register with them doesn't seem to have any enforcement, further not registering will not keep you from escaping the state tax department that combs the FAA registration database to send sales tax bills (whether or not you actually already paid the sales tax) nor the county property tax people who just comb the local airports (including looking into hangars) for based airplanes.

Arizona - sales tax / provide receipts when you first register it; no recurring property tax thereafter. Annual registration fee - $25 for homebuilts. Others it's proportional to possibly some sort of book value (higher than $25). There's a registration fee for "in storage" (lower than $25) for anything that is still registered, but isn't expected to be flown that year.

Oh - and the state starts looking for your annual registration fee once the N-number is assigned to the airplane, so if you have the N-number reserved, don't register the airplane with the FAA until it's about ready to fly.

Hey Guys! Stop giving Pennsylvania ideas here.... :)

Colorado once had a registration 'tax' but finally figured out that it was costing the state more money to administer the program than it brought in as revenue, so they dropped it.

The much better 'news' is that some years back, Colorado tried to lure United into building a major overhaul base in the Denver area. To sweeten the bid they removed the sales tax on aircraft parts. The bid failed and United built their overhaul base elsewhere. But the law remains on the books, and home builders can claim tax exemption on their airplanes. My first plane was registered with the FAA and the state did nothing. When the second plane I built was registered the state picked up that information (as most states do) and wanted sales tax on the cost of the plane. I sent them well over one pound of receipts, shipping documents, and supporting information like local sales receipts, and they backed down. Amount saved was several thousand dollars.

Quote:

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Originally Posted by WLIU

....... the proposal would make airplanes only subject to a registration tax and block a tax based on value. That sounds like a win.
Wes
N78PS

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Bob and Wes...I, also, live in FL, and will vote against Amendment 3. Like many things "political", the devil is in the details.

-Yes...preventing an "Ad Valorum" clause IS a good thing. And, certainly, a registration fee is reasonable. But, unfortunately a "license tax" is both vague, and open to placing any amount that the "whim" of the legislature decides.
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Since we all know, that because "everyone who owns an airplane is rich"; it's good politics to "soak" the airplane owners "their fair (unfair) share" of the tax burden. After all...if you can afford a "quicksilver" or an "affordaplane", you can surely afford to pay more taxes.

And; once politicians have an opportunity to create even a small tax; it's always easier to increase it later.

And Wes, perhaps I remember my Latin a little better than you do.

Therefore to AMENDMENT 3, I say "Upus Rectum" !