Building in California - Tax

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ridekorn
Posts: 8
Joined: Tue Nov 26, 2019 9:34 am
Location: CA

Building in California - Tax

Post by ridekorn »

I was wondering if anyone else is building a Sling in California? Reason I ask specifically about California is that I am about to pull the trigger on kit however I found out that TAF charges sales tax, since they are basing their imports in California. I know that later on when the build is complete USE tax is assessed on the completed plane. Has anyone gone through this before in CA and if so I was wondering if you could talk a little bit more about it?

My general understanding (and this is just from reading a few sites - so I'm not sure how accurate it is) on USE tax is that it is general supposed to be assessed on goods bought out of state where you are not charged sales tax. But in this case I am being charged sales tax so ....

Thanks ahead of time
ebrunye
Posts: 51
Joined: Mon Nov 25, 2019 9:33 am
Location: San Diego

Re: Building in California - Tax

Post by ebrunye »

ridekorn wrote: Thu Feb 13, 2020 1:00 pm I was wondering if anyone else is building a Sling in California? Reason I ask specifically about California is that I am about to pull the trigger on kit however I found out that TAF charges sales tax, since they are basing their imports in California. I know that later on when the build is complete USE tax is assessed on the completed plane. Has anyone gone through this before in CA and if so I was wondering if you could talk a little bit more about it?

My general understanding (and this is just from reading a few sites - so I'm not sure how accurate it is) on USE tax is that it is general supposed to be assessed on goods bought out of state where you are not charged sales tax. But in this case I am being charged sales tax so ....

Thanks ahead of time
I am building in CA and had to pay sales tax on the kit. My EAA Technical counselor also built his plane in CA, and said he was not charged use tax because he kept records of all the parts he bought for his plane, and paid tax on it all along the way. He said they will ask for some receipts/proof you paid taxes along the way, but in the end you will not be charged use tax. The people in charge of taxes know nothing about building airplanes, so if you outsource other large purchases to other states like avionics etc, just don't mention them.
ridekorn
Posts: 8
Joined: Tue Nov 26, 2019 9:34 am
Location: CA

Re: Building in California - Tax

Post by ridekorn »

Thank you. I also sent a letter to the California tax board with this exact question and she said pretty much the same thing, KEEP YOUR RECEIPTS. If you have them then you shouldn't have to pay use tax on it.
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