Dealer License Myth
Many times taxpayers call me when they receive a notice from the State of California; often they feel that they have been unfairly singled out. Many times they open the conversation with, “I have a dealer’s license. I don’t have to pay tax.”
Unfortunately, I have to be the one to break the bad news. They have fallen prey to one of the most insidious lies that resides in the aircraft industry. Worse, this lie permeates into many California businesses that don’t own aircraft.
IT IS NOT TRUE THAT A CALIFORNIA SELLER’S PERMIT OR AN FAA DEALER’S LICENSE ALLOWS YOU TO MAKE PURCHASES WITHOUT BECOMING LIABLE FOR THE TAX.
Don’t fall victim to the many myths out there on how to legally avoid sales and use tax on your next aircraft or vessel purchase. Read my full article on the dealer license myth and don’t forget to call Tom!