Thank You, Thank You, Thank You!
Anyone know how sales taxes are computed on the purchase and if the plane is delivered to a state with no sales tax if it can be avoided. Our company just flew it’s new Gulfstream IV SP to Oregon for delivery to avoid taxes. The one we had on loan was signed in New Hampshire for the same reason.
Depends on the state. I believe California has
a 90-days-or-90-out-of-180-days rule regarding
sales tax (which at 8% is not pocket change).
A friend of mine who is buying a Pilatus PC-12
is keeping it in Idaho for awhile; another pair
of friends who are buying a CJ1 are keeping it
in Oregon for awhile (with friends like these,
who needs an airplane?)
California will expect documentation on where it
spent the 90 days (tiedown receipts, fuel receipts, et al). Of course, you also have to
live without your toy (or live in another state)
for three months. No fun.
Some folks do things like create a Delaware
corporation to own the plane, under the guise
that it really lives in Delaware but is just
visiting. This works until they catch up to
you, at which point it can get expensive.