RizzyWizzy

Tax question, when purchasing a new trike

Last updated by RizzyWizzy Comments (6)

Categories: Trike Talk

I am purchasing a used trike from Montana. I am a resident of Oregon, do I have to pay any taxes on the purchase? Since we don't have any taxes in Oregon.

The reason I ask this is because when I purchased my first trike (sold now) I was a resident of Idaho and living in Idaho and I purchased it from Oregon but I had received documents from Idaho state that I needed to pay taxes on it, which I did.

Now that I am a resident of Oregon, how would that change?

Anyone? any ideas.

Regards.

Rizzy
 

Comments

  • XC Triker

    Gee Rizzy,  I think in the case of aircraft, the taxes due are dependent on the state where the aircraft is hangared basically on January 1.  I bought my trike out of state and don't remember paying sales tax on it.  I registered the trike with the FAA at a nearby airport in the county I live in.  I later moved it to an airport in another county to the South.  My current county caught up with me and tried to make me pay taxes for hangaring in that county-- I had to show that I was already paying luxury taxes (1% of the purchase price) in the second county.

    Every year until forever, I have to pay 1% of the purchase price for the "luxury" of having an aircraft- another great reason to buy used (buy a $100K trike, pay $1K every year, FOREVER!).  There is no depreciated value taxation that I can see.  Each year the tax portion of my car registration goes down as the car ages, but not the trike!!

    I rent my hangar from the county also.  I don't own it.  BUT they send us a bill for property taxes for that hangar!!!  WTF !!!  They tax ME on THEIR property!!!  I thought it was a ridiculous error when I got that bill the first time ...

    Some people (successfully?) avoid taxes by moving their aircraft out of state on January 1 ...

    People who don't hangar their aircraft also sometimes don't show up on the tax radar ...

  • Ken

    Looks like Its state dependent Rizzy

    http://www.aviationtaxconsultants.com/faq.htm

    AFAIK NV has no sales tax, and no "Luxury" tax either. Nevada used to grab taxes on person to person sales of used cars, but they stopped even that a while back... although just checking more closely it looks like my county wants some taxes!!!! Good thing the plane resides in another county !!

    I found this interesting info "California does not recognize either an "occasional" or "casual" sale regarding an aircraft transaction. Arizona and Nevada grant the occasional sale status. Oregon is always a safe place to take possession because Oregon is one of the few states that has no sales and use tax. However, possession in a non-sales tax state does not exempt the sale from tax in the state of primary or sub- sequent use. "

    Here - http://www.aeromarinetaxpros.com/NewsletterPDFs/WhereShouldITakePossession.pdf

     

    Sounds like oregon might be OK , and California is the worst - Sorry XC - you've been had!

    "This question of "Where should I take possession of my aircraft?" comes up every day. The answer is always, "IT DEPENDS." In most cases, it depends on who the seller is and in what state you are planning to take physical possession of your aircraft. But our cau- tion is that you should never take possession inside California "

     

    Here is a link with good news for you and bad news for me!

    http://www.justanswer.com/tax/1hvvj-please-tell-personal-property-tax-charged.html

     

     

     

     

  • RizzyWizzy

    Thank you Ken and XC triker

    That was very helpful, I take possesion of my new trike next weekend. Ken it is just like your trike, a Northwing Navajo....I am very excited.

    Once I have the trike, I would like to get a trailer like what Ken has, a nice small and light trailer that can be hopefully hauled behind a four cylinder car.

    And someday I can join you guys in your adventures and fly-ins.

  • Ken

    The key to the trailer will be the width. I had to have mine extended out a bit.

     

  • Trike Ops

    Hi Rizzy,

     

    I don't think you pay state taxes in Oregon, but you still have to register the aircraft with the state and pay a small fee (ultralight aircraft $30?) within 60 days of purchase.  In my case, after I registered my aircraft with the FAA I got a letter in the mail from my state asking for the sale tax, the good thing was I already knew that was coming and the money was already on the way (before the deadline), yes there is a deadline depending on which month(s) you made the purchase(s).  If you don't meet the payment deadline they charge you late fees (interests per month you did not pay the tax and a penalty percentage). Also, if you don't pay the tax fee and they find out you own an aircraft (FAA or airport visits)they will go to barnstormers or any other website and get an average value of the trike for you and charge you the taxes accordingly. States have different "rules", so I always recommend a quick search for "state XXXX aircraft registration or tax" to get familiar with thier "rules" before or as soon as you handout the money and get hammered with a bunch of state fees or penalties. Hope this helps. FLY SAFE!

    http://www.oregon.gov/aviation/pages/aircraftreg.aspx

  • RizzyWizzy

    Thanks Pedro