LA County Aircraft Notices: The Property Tax and Use Tax Connection
If you're planning to purchase an aircraft and use it in Los Angeles during the first 12 months, watch out.
October 7 at 10 AM PT
LA County has reportedly sent approximately 1,000 property tax notices to aircraft owners this year SO FAR — including owners outside California.
For many aircraft owners, the assessment may apply to only a portion of the aircraft's value.
But here's the issue:
An aircraft that becomes subject to California property tax during the first 12 months of ownership may also become subject to California use tax.
That means an owner who simply pays a property tax bill without evaluating the underlying circumstances could potentially create a much larger California tax liability.
Join Aero & Marine Tax Professionals, aviation attorney Nathan Pietila, and CPA Sean Slavin for a timely discussion about what these property tax assessments could mean for aircraft owners—and what planning opportunities may be available.
LA COUNTY'S AIRCRAFT PROPERTY TAX PUSH
Why aircraft owners are receiving these notices
What these assessments may mean for aircraft owners
Why some assessments apply to only a portion of an aircraft's value
What to consider before simply paying the bill
THE PROPERTY TAX → USE TAX CONNECTION
Why California property tax treatment can affect the use tax analysis
How becoming subject to property tax during the first 12 months of ownership can create potential use tax exposure
Why paying a relatively small property tax assessment could have much larger tax consequences
THE CRITICAL FIRST 12 MONTHS
Why the first year of aircraft ownership matters
How landings and aircraft use in Los Angeles County can affect the tax analysis
What prospective buyers should consider before taking possession
INTERSTATE COMMERCE & THE SIX-MONTH TEST
How the interstate commerce exemption may apply
Understanding the six-month test period
What happens when the test period has already expired
The importance of planning and documenting qualifying flight activity
COMMON CARRIAGE & PART 135
How the common carriage exemption may apply
The role of Part 135 operations and charter activity
Why waiting until after an aircraft purchase can make planning more difficult
Understanding the timing and operational requirements
ALREADY RECEIVED A PROPERTY TAX BILL?
When an aircraft may have been incorrectly assessed
What happens when an aircraft was sold before the January 1 lien date
When it may make sense to challenge an assessment
What to evaluate before simply paying the bill
WHAT AIRCRAFT BUYERS SHOULD BE DOING NOW
Why buyers planning any Los Angeles County landings during their first 12 months should plan ahead
How interstate commerce and common carriage planning may provide potential protection
Why tax planning should begin before the purchase and delivery
COULD OTHER CALIFORNIA COUNTIES FOLLOW?
What LA County's approach could mean for aircraft owners statewide
Whether other major California counties could take a similar approach
Why aircraft owners purchasing or operating in California should be paying attention
What You'll Learn During this Session
THREE EXPERTS.
THREE PERSPECTIVES. ONE CRITICAL TAX ISSUE.
Sales & Use Tax | Aviation Law | Accounting
This discussion brings together professionals from three different areas of expertise to examine the property tax and use tax implications from every angle.
Nathan Pietila
Aviation Attorney
Sean Slavin, CPA
Certified Public Accountant
Thomas A. Alston
California Sales & Use Tax Specialists
WHO SHOULD ATTEND?
This webinar is designed for:
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Aircraft owners who have received an LA County property tax notice
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Aircraft owners who are currently subject to California property tax
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Anyone who purchased an aircraft within the last 12 months
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Prospective aircraft buyers planning to use an aircraft in California
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Aircraft owners operating or planning to operate in Los Angeles County
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Aircraft brokers, aviation professionals, and advisors working with aircraft buyers and owners
DON'T WAIT UNTIL THE TAX BILL ARRIVES
If you're purchasing an aircraft and plan to make any landings in Los Angeles County during your first 12 months of ownership, your tax strategy should be part of the conversation before the transaction—not after.
Register for this complimentary discussion to learn what the recent LA County property tax activity could mean for your aircraft and your California tax exposure.