Out-of-State Affidavit Does Not Exempt You
Do you know all the steps that need to be taken to legally avoid sales and use tax? Chances are you don’t. However, I do and I never lose.
Many people sign affidavits when they purchase aircraft from a California retailer which allows them to make a purchase in a sales tax-exempt manner. If you fit into this category, you probably have not been warned that subsequent to an audit of the retailer’s records, the State of California will audit your purchase directly with you.
The normal process used by the State of California is to conduct audits of all aircraft retailers every three years. This means that even though the the State of California is aware you purchased the aircraft, they may wait for several years to contact you. If you are feeling comfortable because the State of California has not contacted you for the last several years, here is the danger in your current strategy.
Read my full article regarding the State of California and how they weigh out of state affidavits. Don’t forget if you have any questions just call Tom!