Lots of good info on aircraft taxes.  However, there are multiple taxes that we should b concerned about.

 

1)  Initial tax (my words).  This is tax paid when you acquire an aircraft.  Sometimes it is called sales tax and sometimes it is called use tax, I think.  I do know that if you buy a $100,000 airplane in another state and pay sales tax there, own it for decades and move to California, you have to pay a tax equal to California sales tax less any tax you might have paid way back when.  My friend with a Luscombe that he owned for thirty years cannot afford to bring his airplane back to California because of this,  But some states have exemptions.  Colorado exempted aircraft that were "assembled from parts", i.e. kitplanes, at least for the initial owner.  This was done in an attempt to entice aircraft manufacturers to relocate to Colorado and the homebuilders benefitted from this.  Sales tax in Arizona, if applied to a $100K Lancair, would cost more than painting my aircraft, and we know how much *that* costs.

 

2) Yearly tax.  California called this "use tax".  Arizona calls this a registration fee.  I'm not too concerned about this in Arizona because it is 1/2 percent of value (half of California's annual fee) and I think homebuilts get a break.

 

I'll call the state, give them the name of a random guy on this list (just kidding, folks) and report back with what I find out.  My info will be limited to initial registration of a plane built in Arizona, so it will be of limited interest.

 

- Rob Wolf