Sales tax due from seller?

Hello. I live in Illinois. I am in the process of selling my
Cherokee 180. Does anyone know if there are sales tax implications
for the seller? Does it matter if I sell the plane in-state,
out-of-state, or to a corporation?

When I purchased, I bought the plane from an individual who lived in
Illinois (and based the plane here), so no sales tax was due.

Thanks,
Nathan

Most states have information on their website, usually under their
respective Departments of Transportation.

In TX, I ended up talking to the State Comptroller's office. Turns out that
an "occasional sale" required not tax or registration by either party.

I am not a tax expert but based on my research when I bought my plane...

The rules in Illinois changed last June for buyers in Illinois. Use tax is
now due from the BUYER when it wasn't before.

I am not aware of any sales or use tax implications for the seller, ever,
anywhere.

Call AOPA. You are a member, aren't you?

--
-------------------------------
Travis

In Arkansas the seller is responsible for collecting and paying the sales
tax. I have bought two and sold one all in Arkansas. The second one I
bought, I told the seller he was responsible for paying the sales tax. He
said that wasnt the way it works....but 6 months later got a bill for sales
tax for the sale (guess the FAA notifies the states when a change in
registration take place). I think resellers (dealers) are exempt in
Arkansas

--
Mark Manes
WC5I
T310Q N28409

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leave it to Arkansas to do things differently from everyone else...
but I guess that means if the seller took it out of state.. Arkansas would
not collect..

hope he got credit for paying the Arkansas tax to the seller in his home
state..

BT

Thanks for the heads-up on the use tax in Illinois - I bought my 180 4
years ago, so I hadn't kept up with the rules.

Calling AOPA is a great idea too. Will do that.

-Nathan

Nathan,

I'm based in Illinois also. The buyer is liable for the sales tax.
If the aircraft is purchased from an indivual (rather than a broker or
dealer, etc.) the sales tax is waived. Of course the standard
disclaimers apply, you know, check with a tax consultant, attorney,
etc.

In Rhode lsland, the buyer is responsible for a sales or use tax. Doesn't matter who or where you bought it from.
I think they nail you even if you've owned the airplane then move it into the state.

--
--Ray Andraka, P.E.
President, the Andraka Consulting Group, Inc.
401/884-7930 Fax 401/884-7950
email ray@andraka.com
http://www.andraka.com

"They that give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
-Benjamin Franklin, 1759

news:<gde530179tuaanv2nf1gvc32kqrmct2llf@4ax.com>. ..

Nope. That was the rule change last year. Now, in Illinois, the buyer owes
use tax even when buying from an indiviual. Again, I'm not a tax expert.

When I was getting ready to close on my plane last year, AOPA warned me that
the rule was about to change and that I needed to be careful about the
closing date. My point is that they stay on top of things and are a good
reference.

-------------------------------
Travis

I suspect Washington State is typical in how they handle sales tax on
big-ticket items like cars and airplanes. If you buy in-state from a
licensed dealer (or broker), the dealer collects sales tax and pays it to
the state. If you buy in-state from an individual or a corporation that is
not a dealer, you (the buyer) are responsible for paying sales tax to the
state. If you are a Washington resident and buy out of state you have to
pay use tax (equal to the sales tax) before you can register the vehicle in
Washington. This obviously works for cars and trucks, which clearly need to
be registered by the state, but it's a bit fuzzier for airplanes.
Supposedly the state does check FAA registry data to find Washington State
owners that have not registered their airplanes in the state. This is
usually done to avoid sales or use tax, since the cost of registration
itself is minimal, and there are no property taxes on airplanes.

--
-Elliott Drucker

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2 4th August 18:10 carl orton External User Posts: 1	Sales tax due from seller? Most states have information on their website, usually under their respective Departments of Transportation. In TX, I ended up talking to the State Comptroller's office. Turns out that an "occasional sale" required not tax or registration by either party.

3 5th August 15:56 travis marlatte External User Posts: 1	Sales tax due from seller? I am not a tax expert but based on my research when I bought my plane... The rules in Illinois changed last June for buyers in Illinois. Use tax is now due from the BUYER when it wasn't before. I am not aware of any sales or use tax implications for the seller, ever, anywhere. Call AOPA. You are a member, aren't you? -- ------------------------------- Travis

5 5th August 15:56 btiz External User Posts: 1	Sales tax due from seller? leave it to Arkansas to do things differently from everyone else... but I guess that means if the seller took it out of state.. Arkansas would not collect.. hope he got credit for paying the Arkansas tax to the seller in his home state.. BT

6 5th August 15:57 nathan young External User Posts: 1	Sales tax due from seller? Thanks for the heads-up on the use tax in Illinois - I bought my 180 4 years ago, so I hadn't kept up with the rules. Calling AOPA is a great idea too. Will do that. -Nathan

7 5th August 15:57 maurice.givens External User Posts: 1	Sales tax due from seller? Nathan, I'm based in Illinois also. The buyer is liable for the sales tax. If the aircraft is purchased from an indivual (rather than a broker or dealer, etc.) the sales tax is waived. Of course the standard disclaimers apply, you know, check with a tax consultant, attorney, etc.