What states have no light aircraft sales tax

[Fred Claus]

Hi Everyone, I am looking into the logistics of buying a DA62 and importing it into the US. I am wondering if any states allow for a 0% sales tax utilizing the fly-away rule thereafter? I know that Connecticut used to be an option but recently that got revised to only count for planes with an MTOW at or above 6,000lbs. Does anyone know which states don't have this limit? Thanks in advance for any help.

[DaveS1900]

You might check Kansas. I have heard people will fly there to take physical delivery of an airplane. I am not a tax advisor nor do I play one on TV.

[Rich]

Oregon has no sales tax. But this maneuver may not get you anything. Washington State, for example, will get you if you try this and then take it home there.

[Boatguy]

The laws are different in every state. A friend of mine used this guy, and I then used him for optimizing the tax treatment in California on my DA62. He's located in FL, but I think there are others that do similar work. It doesn't matter where the attorney is based. Bottom line - talk to an expert.

Bart Peters bartp@businessaviationlawgroup.com

[Rich]

The laws are different in every state. A friend of mine used this guy, and I then used him for optimizing the tax treatment in California on my DA62. He's located in FL, but I think there are others that do similar work. It doesn't matter where the attorney is based. Bottom line - talk to an expert.

Bart Peters bartp@businessaviationlawgroup.com

Exactly my point. Use an expert. You'll find that where you reside, where it's based and where you "take delivery" all factor in. In some cases if you subsequently move to a different State there could be additional issues.

[Fred Claus]

Thanks for the input everyone. I am working with an aircraft attorney but he usually deals with larger planes, so he didn't know which states were viable as the one's he typically used in the past have the MTOW clause. I'll look into Kansas, Oregon, and then consult with Bart Peters. It will be hangared in Wisconsin and I don't believe they will impose any fines on a sales tax-exempt fly-in. I just need to pay use tax. I will double check with experts.

[johnscim1]

I recently used David Cheung at aviation tax consultants with good results.

https://aviationtaxconsultants.com/

[Donkadillapig]

If you are bringing the aircraft back to Virginia, forget about it. VA has an overstaffed and well funded band of pirates that will find you!! LOL
The state police aviation department needs to pay for their lavish quarters, aerobatic upset training (riddle me why helicopter pilots need this???) and tooling around with rented chambers for hypoxia training (again max ceiling helicopters anyone????) somehow.

Its all fun and games when you are spending other peoples money and there is plenty of it

[FlyingPenguin]

From my own experience, seems like every other state has their own rules about this. Best is to use a tax specialist, map out your route and where you plan to take possession of the plane, and have your tax guy do their magic!

[MackAttack]

+1 for David Cheung and his firm. I have used them on multiple transactions. Highly recommended and light GA is in their wheelhouse. Short answer - “it depends” and one of the things it depends on is your risk tolerance on these issues. Good luck!