Here are the 10 worst things I have heard aircraft owners propose for avoiding sales and use tax in California.
- Just register it out of state.
- Register it out of state and park it in a buddy’s locked hangar inside California.
- I don’t use flight tracking software, so how is the tax agency going to prove where I was?
- I wrote “$1.00 and other valuable consideration” on my FAA Bill of Sale form. They can tax me on that.
- I registered it in a Delaware LLC. That is a no sales tax state.
- I registered my aircraft in Oregon. I have an address there.
- I am a broker. I used my resale certificate to purchase all my aircraft. They are always for sale.
- I’ll get them to negotiate the tax down.
- I’m old and getting ready to die. Can you keep them away from me until then?
- I’ll take them to court.
If you'd like to find out the REAL things you should do to legally avoid paying sales and use tax on an aircraft purchase in California, email Tom Alston of Aero & Marine Tax Professionals, or call 916-691-9192, ext. 108.