Anyone buy a plane in Georgia?

[WDD]

I'm getting some interesting answers to my questions when I speak to the Georgia Dept of Revenue about Sales Tax. The nice lady said it would be a "casual use sale" since it's not for commercial use. But.... then, my car wasn't either for commercial purposes either, and they took sales tax.

Thought I'd ask if anyone has any "real world experience" with Georgia and sales tax.

Thanks!

 

[kyleb]

I'm guessing you bought your car from a dealer. And therefore paid sales tax. If you buy a car or an airplane from an individual in GA, there is no sales tax. That's a "casual" sale.

 

[Hang 4]

The county will come after you for ad valorem as well. RYY provides tail numbers to the tax collector.

 

[Velocity173]

I bought my Velocity in Florida but when I registered it in Georgia, they came after me with a sales tax. They do personal property tax in the county in GA that I have them hangared as well.

 

[WDD]

What caused them to come after you and not Kleb?

(There will be property tax to the county annually, but that’s a different story).

 

[Hang 4]

I bought my plane from a dealer in Texas. To the best of my recollection I did not pay GA sales tax, but not sure.

 

[FormerHangie]

I'm getting some interesting answers to my questions when I speak to the Georgia Dept of Revenue about Sales Tax. The nice lady said it would be a "casual use sale" since it's not for commercial use. But.... then, my car wasn't either for commercial purposes either, and they took sales tax.

Thought I'd ask if anyone has any "real world experience" with Georgia and sales tax.

Thanks!

You paid Title Ad Valorem Tax on your car, not sales tax. That shouldn’t be applicable to an airplane.

 

[Dave Theisen]

Georgia switched from Ad Valorem to Sales tax about ten years ago on cars.

 

[N747JB]

Casual sales of airplanes are exempt from sales tax in Georgia. Casual sales is from one individual to another, purchasing from a company or LLC of any type is taxable. Some states have a reciprocal agreement with Georgia, Texas comes to mind. I bought a 414A from a guy in Texas, since it was in his name, I didn’t owe any tax. One of the exceptions is if you buy a Georgia LLC as a single member, then transfer the aircraft to your name. Vehicles are subject to TAVT, basically a title tax, based on the state’s valuation no matter the where it’s purchased or transferred from. Exception is transferring a vehicle to a family member, I gave my son my truck and he filed the exemption when he titled it, no taxes due.

 

[FormerHangie]

Georgia switched from Ad Valorem to Sales tax about ten years ago on cars.

Under the previous rules, if you bought a car from a dealer, you paid sales tax at the rate in effect in your county of residence. In addition, you paid an annual ad Valorem tax to your county, determined by the rate in your home county and the value of the vehicle. The revised rules eliminated the yearly tax, instead you pay a Title ad Valorem tax when you first register your vehicle in Georgia, whether you bought it new used, or from a private party. The only exception I can think of is the one mentioned by @N747JB .

 

[JacksonHandy]

I’m resurrecting this from the dead to ask, anyone have a good financial model for a purchase in Georgia? Taxes, fees, etc.

I have a model, but I’m missing some of these extra costs to be able to establish a cash outlay forecast.

I promise I used the search function.

 

[Hang 4]

Depends on the county the plane is based in. There's a sales tax on the purchase and an annual ad-valorem. You can go to the county website and look it up.

 

[N747JB]

I’m resurrecting this from the dead to ask, anyone have a good financial model for a purchase in Georgia? Taxes, fees, etc.

I have a model, but I’m missing some of these extra costs to be able to establish a cash outlay forecast.

I promise I used the search function.

You’ll owe sales tax in most cases, the % is based on the county where you register it, 6 or 7% of the purchase price. Casual sales are exempt, buying from another individual that is not in the business of selling airplanes. Buying from any company or LLC is taxable. You will have an annual county property tax, Ad valorem tax, based on the county assessed value. My 414 is assessed at $200,000 and my tax is $1800 in Coweta County.