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Old 03-15-2010, 01:15 AM   #1
catch22
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Ohio Use tax on home built aircraft

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Im seeking comments regarding Ohio Use tax due on a home built aircraft for personal use that is about to be registered, hence I expect to hear from the Ohio Department of Taxation.

Since its home built, built from parts, there is no Bill of Sale to declare a dollar value and since the project is many years old, my receipts are few and far between.

I expect to receive a letter soon auditing the situation and Im completely unsure how to respond. Comments please.
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Old 03-15-2010, 08:21 PM   #2
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Is use tax a new revenue generator for Ohio??

Are you concerned becuase there would ordinarily be a sales tax charged at first registration??

Here is how I would approach the issue, most state use roughly the same sort of analysis.

Sales taxes are usually charged to the consumer on all retail sales of 'tangible personal property". I would assume that most of the parts and supplies used in the process of making the aircraft would have been taxed at purchase as tangible personal property...

Use tax is typically the avenue by which items that are purchased without sales tax are declared by the consumer/business and the appropriate tax is assessed. Most often this is the result of buying something either from an out of state vendor that did not charge a sales tax or buying something for resale and then using it in the operations of your business.

You might have a few items (or maybe a lot---I don;t know) purchased from out of state vendors. these, to my way of thinking, are the source of any exposure.

Assuming you get an inquiry, do your best to show that the materials used were locally obtained (in state) and that you had no method of exempting your self from sales taxes on those purchases.
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Old 03-16-2010, 01:34 AM   #3
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sorry skier J....I tried to post to the forum 5 or 6 times, but it apparently doesnt post, rather it sends you the email directly....I used the caps to make annotations within your text.
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Old 03-16-2010, 01:45 AM   #4
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Quote:
Originally Posted by catch22 View Post
sorry skier J....I tried to post to the forum 5 or 6 times, but it apparently doesnt post, rather it sends you the email directly....I used the caps to make annotations within your text.

what happens is that when you reply I get an email, however, seems sometimes and perhaps due to the interleaved answers, i'm not too sure, your repsonse never ends up on the board, just a notificaio in my email.

tHIS WILL CONFUSE ANYONE READING THE THREAD, BUT NOT US

I alos have a really sensitive cap locks key----sorry.

now, if you got most of these parts from other individuals and never paid any sales taxes on them you may indeed have a rather large issue---....

Oskosh by Gosh is relatively close by comparison to my location in the windy NE, and that location is the king of home grown isn;t it?? why not look up a forum on home made aircraft and see what the rest of the home built community does----if it is a federal registration, then someone somewhere must have already had this conversation...
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Old 03-16-2010, 01:57 AM   #5
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by gosh you're right.....I will have a large issue since the parts were mostly given to me by my aunt from a late uncle.

Most of the time, these are in kits, a bill of sale is issued for the kit purchase price and included with the federal registration as a bill of sale...a state will see that and charge the appropriate tax......yes Ive spoke to other kit builders...unfortunately, my situation doesn't fit in the standard box.

My accountant is stymied too. I sent the registration in today.....so since nobody knows....I will become an expert on this issue soon enough.
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Old 03-16-2010, 02:01 AM   #6
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well then, in many states you are allowed to transfer thinsg between family members without sales tax: Grandmas Gremlin goes sales tax free to her least favoite nephew (that classic 57 chevy goes to her favorite eh???) in most states...query if that may hold true for parts that end up in a home built aircraft??
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Old 03-16-2010, 02:14 AM   #7
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wishful thinking.....I see this coming down to a battle of wills.
I even tried to do legal research to find cases on the matter....didnt get deep enough to say there arent any....but I am beginning to suspect this is small peanuts for them. They will like just see what they can shake out of me by intimidation.
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Old 03-16-2010, 02:18 AM   #8
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I find that sales tax dudes in most jurisdicions are not the nicest guys n the world.....I'd MUCH rather have a federal issue than a sales and use issue.

you may be right....I've given you all i have to offer...good luck
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Old 02-02-2013, 01:22 PM   #9
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hey skier advice for u; never make less professional.inaccurate comment here NOT helpful for TPs posting questins here got that???
stop demonstrating your ignorance here~
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