Re: Light-Sport Aircraft Yahoo group State Sales Tax

Bob,

As a disclaimer, each state is different and I am not a tax accountant.  However, having encountered some of this before, here is my advice.

I'd respond in writing that your homebuilt aircraft was built by you and that the corresponding sales tax was paid at point of purchase.  And don't say anything more.  

Then I'd write in a question did they mean the use tax (or in Indiana we call it an excise tax) instead of state sales tax?  Please find attached copies of my past Ohio use tax previously paid.

I think they will leave you alone or come back with a more clear response.

My $0.02,

Mark Poliak
Astra HKS
Westfield, IN

> Group,
>
> I have a question regarding State Stales Tax. While this pertains to my
> TigerCub, this question/situation may be of interest to any builder.
>
> I completed my TigerCub in October of 2010 and have been flying it since.
> I did all of the necessary registrations and have paid the Ohio Use Tax
> each year, so far.
>
> I built my TC from plans, which means that I sourced and purchased all of
> the materials, engine, instruments, etc., from various sources. Some of
> these sources were local, some via the internet, and one (the engine)from
> Canada. The local purchases and those via the internet, but within Ohio,
> required sales tax to be paid at the time of purchase. No problem. The
> internet purchases from outside of Ohio did not require sales tax to be
> paid at the time of sale. Casual sales from individuals (scrap tubing,
> used instruments, etc.) would not have required sales tax to be paid. I
> have SOME of the receipts from SOME of the purchases, but certainly not
> all of them.
>
> Here is the question/situation: The State of Ohio, Department of Taxation
> has sent me a letter asking for details of the purchases and demanding the
> payment of the requisite sales taxes. I believe this applies mostly to
> the internet sales from outside of Ohio. I'm not sure how to respond
> given that I'd like to minimize the amount of taxes that I might have to
> pay.
>
> Does anyone have any recommendations? I'm sure that this is typical, but
> I've never read much about how it could be handled. I'd appreciate any
> and all input. Thanks.
>
> Bob Taylor
> Wadsworth, Ohio
> TigerCub, N657RT
>
>

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