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Thread: Buying an airplane- taxes?

  1. #1

    Default Buying an airplane- taxes?

    I have bought my first plane. The plane is in California and I am in Alaska. Being new to this I am wondering what I need to do for property taxes and aircraft registration fees. I have registered it with the FAA but what about locally? I found info that the aircraft registration fee is $50 a year and the personal property tax is FMV x millage rate. Does this sound right? Can anyone point me in the right direction? I am struggling to find information.

    Thanks so much!

  2. #2
    Member
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    Default

    Do you have to pay California sales taxes?

  3. #3
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    Default

    Anchorage municipal tax on private aircraft is a flat $75 per year regardless of value. That's the only tax I pay. There is no state tax or registration requirement. Other cities may impose taxes. I wouldn't know.

  4. #4
    RMK
    Guest

    Default I'm no tax attorney, but.....

    Normally, the tax law you fall under would be governed by "where" the property is. If the plane in California, you may be subject to their taxes.

    If you just bought it, and are bringing it to Alaska, you can probably dodge that. (I would assume the previous owner paid the taxes due for last year)

    As the earlier poster mentioned, Anchorage now has a "registration tax." It is based on the number of engines a plane has. A single engine plane is $75, and a twin gets you $150.

    The Mat-Su borough also adopted this system a while back. Anyone who has had a plane here for a while should remember the "property tax" that was levied. The municipality of Anchorage used to treat a plane like a house. It was value based, and pretty expensive. The change to the system cut my tax bill from several hundred dollars to $75.

    The logic was, why should a guy with an $80,000 Supercub pay $700 bucks in property tax, while a guy with an $80,000 motorhome paid about $100 in registration tax? The law was changed in the late 80s or early 90s, and has been more fair ever since.

    You can go the to the Municipality of Anchorage web page to register the plane. Don't ever be late! The fine is $25 per month that your late. They are due every January.

    I hope this helps some. You still may want to find out how long you can leave it in CA before being subject to their tax.

  5. #5

    Default

    Thanks for the info. This is all very helpful. My concern was having it in CA and having to pay property tax there which I think I will have to do since I will not have it up here for 6 months. I wanted to check it all out so I don't pay the wrong state and cost myself money!

  6. #6
    Moderator LuJon's Avatar
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    Default

    Depending on tax in Cali, it may be possible to move it to NV and save some $$. I am not sure what the taxes are down that way but I know my boss keeps his twin engine plane at a private strip in NV and I believe that the CA taxes were one of the major reasons for that.

  7. #7
    Member algonquin's Avatar
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    Default reg. in ANC

    You only have to pay tax for a plane once. Just reg. the plane with Anchorage and pay the tax. If Ca tries to tax you just send a copy of your tax receipt to them. As long as its home base is ANC and you pay the city tax every year your OK. Its a free country and your just visiting, oh wait CA, free, better be careful.

  8. #8

    Default Help!!

    I have looked everywhere on the web for information and am going bonkers!! Can someone give me a direct link or a phone number on where to call to find out where I can pay the local registration tax? I am located in Fairbanks.

    Thanks so much!!!

  9. #9
    RMK
    Guest

    Default That explains it

    I assumed you were in Anchorage or the valley. I don't know what system Fairbanks uses. Are you in the borough or the city? You need to call the appropriate entity and find out what they do up there.

    I know a guy in Fairbanks who has a couple planes. I will email him and post his response when he sends one.

  10. #10
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    Default California taxes

    When I moved to CA fresh out of school I purchased a used vehicle. Upon transferring the registration down at the DMV I was hit with approximately 8% sales tax. I don't know whether planes fall under the CA sales tax rules like cars, boats, bikes, etc... But if you transfer title to a privately owned vehicle in CA. The government agency handling the paperwork is probably going to want their cut.

  11. #11
    RMK
    Guest

    Default Here's the skinny from a long time Fairbanks pilot

    Assuming your plane will be parked in the Fairbanks North Star borough, you are in luck. The borough up there does not tax personal property. That means, all you have to do, is fly it, and have fun. I don't think there are any strips within the city limits up there.

    FAI is located outside the city if that's where you're keeping it.

    There is no state registration as we all know. You need to register the plane with the FAA, and you're good to go.

    And I thought $75 was a good deal in Anchorage. Fairbanks is even better.

    Cheers!

  12. #12
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    Default Non Resident Registration

    Find the California law on the internet and read it closely. I just bought a glider in Arizona where there is a registration/tax law. I looked up the law and found that an aircraft based in Arizona but owned by a non-resident is not required to be registered. I do have to fill out a form and send a check for .005% of the value of the aircraft. In the case of my inexpensive glider that's not much. Also registration of Aircraft in the Muni of Anchorage is only for aircraft based in the Municipality. I'm a resident of Anchorage but will not have to register with the Municipalty because the glider will be based in Arizona. The Municipality has a form I have to file indicating that the aircraft with an FAA registeration address in Anchorage is based elsewhere. Read the California law carefully, there should be maximum time you can have the aircraft in California before the registration requirement kicks in. The Anchorage law is 60 days. It's going to take the FAA a couple of months to process your registration anyway. By the time they're done and the California beancounters catch up you'll be back in Alaska.

  13. #13

    Default Thanks!

    Thanks for all the help!! I was fine with $75 but free is even better!! I already registered with the FAA and I am good to go on that! Now all I need to do is find out if Cali is gonna charge me until I get it up here! Again, I appreciate the help and info!!

  14. #14
    RMK
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    Default No Problem

    I trust the source of the Fairbanks information. The guy I got it from is a long time Fairbanks pilot for fish and wildlife, and also has his own aircraft.

    He is also the former Northern Director of the Seaplane Pilot's Association.

    I don't know if you plan on hiring a ferry pilot, or getting it yourself, but that is another adventure in itself. Be Safe and have fun!

  15. #15
    Member algonquin's Avatar
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    Default sometimes its best to just be quite

    If you start asking questions of the state of Cal. they are broke, so they are very likely going to look for some way to get some money from you, even if they know it's illigal. Once the wheels start turning so to speak you are it. So think it over.

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