From: "Marvin Kaye" <marv@lancaironline.net>
Subject: Re: [LML] Calif. State Use Tax
To: lml
Date: Thu, 18 Mar 2004 17:57:13 -0500
Message-ID: <web-3101144@logan.com>
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Posted for Tammy and Mike Salzman <arrow54t@yahoo.com>:

Skip and other CA builders,

They'll get you when you register the airplane.  The FAA sends the CA
BOE a notice of a new registration application which clues them in that
there is money to be had.  You have 1 year from the date that your kit
enters CA to pay the tax or else you are penalized AND have to pay
interest on the unpaid taxes.  Before you register your airplane, make
sure you either pay the tax promptly (within the year timeframe) or
move to another state that doesn't have this practice.  I waited a
little over a year and got stuck for a little interest and penalty. 
You'll need the bill of sale to prove the purchase date and price. 
Lancair will supply a copy if you never received one initally or may
have lost your copy.

Mike Salzman
Fairfield, CA
LNCE

> Can any California builder/pilots tell me if after their project was
> flying they received a use tax bill from the State Board of
> Equalization? Any aircraft purchased for use in California is subject
> to
> a sales tax if purchased in Calif. or a use tax if purchased outside
> the
> state. How does this law effect kit aircraft?