Aircraft Property Tax - Califronia

Ventucky Red

Ventucky Red

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Anyone know what they are using to determine the value of an aircraft every year? vRef, AC- Blue Book, etc....?

Is this tax transferable similar to real estate tax? That is if I sell/buy, can the tax be transferred to the new owner that is currently due?

Thanks
 
Ventucky Red said:
Anyone know what they are using to determine the value of an aircraft every year? vRef, AC- Blue Book, etc....?

Is this tax transferable similar to real estate tax? That is if I sell/buy, can the tax be transferred to the new owner that is currently due?

Thanks
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I don’t know, but their valuation usually comes lower than Vref for me.
 
Ventucky Red said:
Anyone know what they are using to determine the value of an aircraft every year? vRef, AC- Blue Book, etc....?

Is this tax transferable similar to real estate tax? That is if I sell/buy, can the tax be transferred to the new owner that is currently due?

Thanks
Click to expand...

It's a county ax, so each county's tax assessor has their own method. Alameda seems to look at the base aircraft blue book value, no adjustments. But then... I refuse to fill out the form, which can subject you to perjury charges, and instead accept the 10% tax increase for no form.

The tax is accrued by the aircraft owner as of assessment date. If you can convince the buyer to pay, good luck. But the county will come after you... you can't assign that.
 
PaulMillner said:
That was helpful... not.
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The truth sometimes isn't. This was the basic method explained to me by someone who worked in our county tax department. There's obviously some sophistication in it and they can't go wild, but the amount of tax is computed to meet their revenue requirements and the assessed value really doesn't bear much resemblance to a market value. Here at least the assessed values are typically 20-30% under the market value, so you know if they wanted more they could justify it.
 
bflynn said:
The truth sometimes isn't. This was the basic method explained to me by someone who worked in our county tax department. There's obviously some sophistication in it and they can't go wild, but the amount of tax is computed to meet their revenue requirements and the assessed value really doesn't bear much resemblance to a market value. Here at least the assessed values are typically 20-30% under the market value, so you know if they wanted more they could justify it.
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in reality isnt that how all taxes are set. they decide how much they want, and figure out a way to get that. if the have the actual value they set the millage at what ever they need to get the target. if they dont have an actual value they set the millage and the value to net the amount they want.
 
I have observed the same thing. It will be whatever the tax department decides it is.
 
unsafervguy said:
in reality isnt that how all taxes are set. they decide how much they want, and figure out a way to get that. if the have the actual value they set the millage at what ever they need to get the target. if they dont have an actual value they set the millage and the value to net the amount they want.
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Yep. It's why my property taxes rarely go down despite a home being worth less. They just raise the multiplier. Then when value goes up do you think that multiplier gets reduced? Yeah right!
 
I am not sure of their source for value, but I was assessed against a value higher than what I paid for my aircraft. If the aircraft property tax rate is 1.1% of the value, I was assessed closer to 1.5%. (The reality is that ai got a great deal but had to put a lot of money and sweat equity to make it airworthy again, but the tax board valuation of my aircraft was for a fully airworthy example for the year, so a value more than what I actually paid for it.)

I am not a tax professional, so best to consult with one. But in my county, the assessment is made as of Jan 1 for each year based upon current year valuation of the aircraft. So for me, unless I sold the plane by Dec 31, I will still owe taxes as of Jan 1's assessment for that year.
 
Also in CA you owe property tax on the hangar with the person/company of record on Jan 1 pays for the year; even if renting from a municipality. My 1100 sq ft T-hangar is about $160.

Planes 35 years or older owned by an individual can have their tax liability waived if the plane is shown to the public 12 times within a year. Nearly every GA airport here has a "2nd Saturday" event when pilots taxi to the terminal ramp and the airport manager or staff member signs the wavier form. Most counties charge $35 one time fee to enter the program.

The plane's value is set by the purchase price, and value is adjust upward for major improvements like a new engine. The counties are generally flexible with arguing value for tax basis with GA plane owners. A typical 35 yo Cessna valued at $80K has a tax about $950 divided across 2 payments. Again the waiver program is easy to apply for and take advantage of here.

Actual tax rates vary by county depending on special districts and surcharges. A good ballpark is 1.25% of the asset.
 
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NordicDave said:
Also in CA you owe property tax on the hangar with the person/company of record on Jan 1 pays for the year; even if renting from a municipality. My 1100 sq ft T-hangar is about $160.

Planes 35 years or older owned by an individual can have their tax liability waived if the plane is shown to the public 12 times within a year. Nearly every GA airport here has a "2nd Saturday" event when pilots taxi to the terminal ramp and the airport manager or staff member signs the wavier form. Most counties charge $35 one time fee to enter the program.

The plane's value is set by the purchase price, and value is adjust upward for major improvements like a new engine. The counties are generally flexible with arguing value for tax basis with GA plane owners. A typical 35 yo Cessna valued at $80K has a tax about $950 divided across 2 payments. Again the waiver program is easy to apply for and take advantage of here.

Actual tax rates vary by county depending on special districts and surcharges. A good ballpark is 1.25% of the asset.
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Thank you
 
unsafervguy said:
in reality isnt that how all taxes are set. they decide how much they want, and figure out a way to get that. if the have the actual value they set the millage at what ever they need to get the target. if they dont have an actual value they set the millage and the value to net the amount they want.
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I think that's effectively what I said. Sometimes they change the value, sometimes they change the rate. Either way, they determine what revenue they want and you really don't have much of an argument to make about your share of it.
 
Ventucky Red said:
Anyone know what they are using to determine the value of an aircraft every year? vRef, AC- Blue Book, etc....?
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A gentleman bought my plane and several months later the state of California sent me a letter asking what he paid for it (I'm in Texas). I responded "american currency" and they never asked again ...:cool::cool:
 
I used an escrow company when I purchased my plane. I forwarded a copy of my escrow paperwork as evidence of the value - and that is what they ended up valuing my plane at.
 
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