Richard Milhous tells a new story about an old airplane.
Until last year, Mr. Milhous hadn't even imagined owning a collection of history - never mind one that was built half a century ago. Today, he is a staunch advocate for owners of military aircraft across California. "We're keeping alive an important part of our past," he says, "and that past is essential for our recall of history - and a bit of nostalgia for our WWII heroes who fought for us."
His pride and joy is a Korean War-era trainer for jet pilots called a North American T-28. "By maintaining these aircraft, we're preserving part of history, providing a measure of respect for their vital role in a conflict for our peace at home," says the cousin of former President, Richard Milhous Nixon.
"Historic aircraft like this should never be subject to taxes, mainly, because the owners are civilians spending their hard earned money to preserve these extraordinary pieces for the public to enjoy," says Milhous, "any more than they should be lost to government destruction like so many important airplanes of the last century. For example, look how few P51's, Corsair's, P-38's, and P-47's there are today. The Mustang airplane was a sexy lady of the skies that helped us be the victor in WWII - which eventually stopped the world from fighting."
Ironically, California's system of airplane taxation was devised during World War II when so many aircraft were built and sold in the state. "It might have been appropriate back then," points out Milhous, "but taxation on a half-century-old ex-military airplane doesn't make any sense nowadays. Does the tax money go towards anything related to aged military airplanes? Absolutely not - at least when I pay tax on gasoline it goes towards the roads that I use."
Milhous says a visit to Florida about a year ago was the genesis of his interest. "By chance I came across this wonderful old plane. The owner offered it to me at a very fair price, but I made it clear I was definitely not in the market. Not only that, even at that very fair price, it was something I couldn't possibly afford."
"In fact, to make it more clear I had no intention at all of buying the plane; I made a ridiculously low counter offer. The owner took a liking to me; and within six minutes, he had agreed to the offer. I expected him to counter at a much higher price - but now I had somehow backed into becoming a military airplane owner - now I am panicky - and had to find the money to pay for it! Worse, I was also looking at paying the State of California a tax of $18,000, plus another $3,000 a year for the privilege of keeping up a history piece."
It was about then that this odd chain of events took a turn onto the straight and narrow. "A friend had seen an advertisement for Aero & Marine Tax Professionals in a magazine, and I was fortunate enough to find Tom Alston at his phone that very day. We began the process of putting together the paperwork for an out-of-state exemption. We filed in October 2003, and got the exemption inside eight months."
Dick Milhous says that even with what he paid to Aero & Marine Tax Professionals, as well as the cost of visiting the aircraft and taking possession in another state, it still cost him less than half of his expected California Tax liability. "I'm tickled to death wit the exemption," he says. "To be honest, I still think it's a dream. Considering the circumstances by which I came to own the T-28, that's probably an appropriate state of mind - now I show the T-28 aircraft at California air shows for the public to see a bit of history - and the old timers who flew these respond from the bottom of their heart - a sigh of gratitude, "just as it should be!"
We now have a program in Arizona as well as California!
It's true! We've saved clients literally millions of dollars - I can guarantee you won't find anyone with more knowledge and experience. It pays to plan ahead so future aircraft or vessel acquisitions are properly structured. Plus, if you suspect the status of a purchase made anytime in the past 10 years - I will offer a free analysis of your situation. Go here and simply fill in the appropriate form. Or call me personally at 916-691-9192. - Tom Alston
