California Hangar Property Tax

Lndwarrior

Lndwarrior

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This year I moved from a city owned and leased hangar in Sonoma County to a privately owned hangar (in another CA county) that I am renting from another individual.

When renting the city owned hangar I had to pay property tax on the hangar. If I rent a hangar from a private party, I'm not subject to the property tax - or am I?

I'm guessing the hangar owner would pay the property tax, right?

TIA
 
Well one way or another youre going to have to get scammed by CA, just a matter if you write one check to the owner, or one smaller check to the owner and one to your communist overloads.

But to your question, Id wager the county would just send their tax demands to the owner on file, and he'll just pass on some of that joy to you via your rent.
 
Lndwarrior said:
This year I moved from a city owned and leased hangar in Sonoma County to a privately owned hangar (in another CA county) that I am renting from another individual.

When renting the city owned hangar I had to pay property tax on the hangar. If I rent a hangar from a private party, I'm not subject to the property tax - or am I?

I'm guessing the hangar owner would pay the property tax, right?

TIA
Click to expand...

Correct, the Hagar owner pays the property tax. In you’re case.
 
Lndwarrior said:
This year I moved from a city owned and leased hangar in Sonoma County to a privately owned hangar (in another CA county) that I am renting from another individual.

When renting the city owned hangar I had to pay property tax on the hangar. If I rent a hangar from a private party, I'm not subject to the property tax - or am I?

I'm guessing the hangar owner would pay the property tax, right?

TIA
Click to expand...

The property owner will be responsible for payments being made. He will get the bill and he will be liable and a lien put on the property if payments become delinquent. There could be a clause in the Lease agreement that the Lessee, you, will make the payments. That will not change that the Lessor is responsible to the County, State or whoever the taxing authority is. In this case the Lessee will be responsible to Lessor. But the property owner is always the one who is responsible to the taxing authority. I own a hangar. I build the Tax into the monthly rate and make the payments myself. I would bet that the vast majority of other private owners do the same.
 
James331 said:
Well one way or another youre going to have to get scammed by CA, just a matter if you write one check to the owner, or one smaller check to the owner and one to your communist overloads.

But to your question, Id wager the county would just send their tax demands to the owner on file, and he'll just pass on some of that joy to you via your rent.
Click to expand...

Do other States not have Property Tax? Rhetorical question, no answer needed. Yeah, California tends be a little high on the list of high tax states
 
Does he need to ensure the tax payment is actually made each year, so that any lien would not include his airplane which is in the affected hangar?
 
luvflyin said:
Do other States not have Property Tax? Rhetorical question, no answer needed. Yeah, California tends be a little high on the list of high tax states
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Unless it's just part of the rent, I've never heard of paying taxes on a rented hangar no matter who you rent it from...
 
I have never paid property tax on anything I rented, its all part of the bill...
 
James331 said:
Well one way or another youre going to have to get scammed by CA, just a matter if you write one check to the owner, or one smaller check to the owner and one to your communist overloads.
Click to expand...

hahaha zing
 
I have a hangar rented in Sonoma County -- rented from the county at STS. Yes, they force me to pay their property tax on both the land the hanger is built on, and the hanger itself. I get two tax bills, one for the land and one for the hangar. Welcome to the People's Republic of California. They should adopt the New York state motto, "Ever Higher" (taxes, living costs, etc...)
 
One way or another, you're going to pay for it.
 
What does your rental contract say? The lease will specify your financial obligations. Depending on the lease, your lessor may require you to pay electric, heating, and or other fees. Or not. If you don't have a lease/contract, obtain one for your protection.
 
James331 said:
Well one way or another youre going to have to get scammed by CA, just a matter if you write one check to the owner, or one smaller check to the owner and one to your communist overloads.
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Now, now comrades ... enjoy the tax payment while you can!:confused:

Soon, all fields that aren't Class C or higher will be converted into shopping malls anyway:eek::eek::eek:
 
danhagan said:
Now, now comrades ... enjoy the tax payment while you can!:confused:

Soon, all fields that aren't Class C or higher will be converted into shopping malls anyway:eek::eek::eek:
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If ones paying a amount that large in “tax” and if they don’t pay it they are tossed off the property, real world you don’t own the property, just renting.
 
bnt83 said:
I have never paid property tax on anything I rented, its all part of the bill...
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Turbo-Arrow-Driver said:
I have a hangar rented in Sonoma County -- rented from the county at STS. Yes, they force me to pay their property tax on both the land the hanger is built on, and the hanger itself. I get two tax bills, one for the land and one for the hangar. Welcome to the People's Republic of California. They should adopt the New York state motto, "Ever Higher" (taxes, living costs, etc...)
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It's called the "Possessory Interest Tax" when you rent from the local government. I paid it on a slip I rented a few decades ago in Alameda County (CA). A total rip-off, but it's the government and their rules always favor them.
 
luvflyin said:
Do other States not have Property Tax? Rhetorical question, no answer needed. Yeah, California tends be a little high on the list of high tax states
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Actually, due to Prop 13, CA's property taxes tend to be on the lower side. It's one of the reasons why other taxes, like sales tax, are higher.

(For reference, Prop 13 caps property tax at 1% with no more than a 2% dollar rise year-over-year, reset on the occasion of a sale. That 2% is actually the more significant half of it, as the real percentage of value is generally far less than 1% due to the fact that real estate around here grows at far, far over inflation. For instance, on one home I own, it's hovering around 0.6% of real value.)

EDIT: looked it up. CA is 34th at 0.74% median. New Jersey tops the list at an eye watering 1.89%. Texas is a surprising number three at 1.81%.
 
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arnoha said:
Actually, due to Prop 13, CA's property taxes tend to be on the lower side. It's one of the reasons why other taxes, like sales tax, are higher.

(For reference, Prop 13 caps property tax at 1.1% with no more than a 3% dollar rise year-over-year, reset on the occasion of a sale. That 3% is actually the more significant half of it, as the real percentage of value is generally far less than 1.1% due to the fact that real estate around here grows at far, far over inflation. For instance, on one home I own, it's hovering around 0.6% of real value.)
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Depends on when you bought. There can be two houses next door to each other. Duplicates of each other. One owner can be paying 10 times the property tax of the other. There must have been a recent change I haven't heard about. It was 1% of value and value could increase no more than 2% per year. Reset to sale price upon sale like you said. That's the base property tax. They've been very creative over the years in converting things that used to be 'tax' to 'fees' that are added to the property tax bill. Do you have some documentation on that 1.1% and 3% thing?
 
I have nothing to add here other than to be the third poster from Sonoma County. :)
 
luvflyin said:
Depends on when you bought. There can be two houses next door to each other. Duplicates of each other. One owner can be paying 10 times the property tax of the other. There must have been a recent change I haven't heard about. It was 1% of value and value could increase no more than 2% per year. Reset to sale price upon sale like you said. That's the base property tax. They've been very creative over the years in converting things that used to be 'tax' to 'fees' that are added to the property tax bill. Do you have some documentation on that 1.1% and 3% thing?
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http://worldpopulationreview.com/states/property-taxes-by-state/ was where I got the numbers from for the stats. I went by memory for prop 13, but I'm double-checking now...and you're right about 1% and 2%. What I get for trusting my memory. Fixing my previous post.

The fee thing...large such fees are actually pretty rare. There's a few piddling ones that I pay, but they're tiny. My mother is getting hit with a very large ($250 by itself) one to fund school improvements, but her age lets her exempt herself. That was the reasoning behind Prop 13 in the first place: folks wanted a limit on the rise to prevent elders who'd paid their homes off getting booted for not being able to pay taxes. Of course, the real dynamics of the system have been very different.

EDIT: went and looked it up. $254 per year on fees. A little higher than I thought, but not by too much.
 
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Ghery said:
It's called the "Possessory Interest Tax" when you rent from the local government. I paid it on a slip I rented a few decades ago in Alameda County (CA). A total rip-off, but it's the government and their rules always favor them.
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I have one of those. I don't rent from the local government though. It's the Federal Government. I get a California Possessory Interest Tax Bill from Los Angeles County.
 
Departed the left coast long ago, but landed in Maryland, which is basically New Jersey, but without New York. We have a bumper sticker that says "MD! If you can dream it, we can tax it!"

They actually tried to tax rainfall here; or, more accurately, the amount of rain runoff, based on sat photos of the non-permabale surfaces on your property. They do charge 5 cents for plastic grocery bags, which is something like 50 times the actual cost - stores keep a penny to make it worth their time. All dedicated and earmarked to environmental cleanup. . .only it really isn't, of course.

Like CA, none of our taxes are the highest, but also like CA, we have ALL the taxes, and they are mostly all in the top half. Fees are killers here, particularly sale taxes on homes, labeled "county stamps", which drive closing costs through he roof. Low cost housing is heavily impacted by the cost of doing business with the state and local governments -permitting is astronomical, inspections slow and inefficient, zoning a political football, and so developers just don't see the ROI on low-to-moderate cost housing. So they don't build it, or if forced to includeit, they bury the cost into the higher-end units, if it's sustainable to do so.

Like CA and NY, MD doesn't have a revenue problem - they have a spending problem; buying votes with taxes and fees is the current paradigm. Hangar renters get a small bite of that poop sandwich. . .
 
Sundancer said:
Departed the left coast long ago, but landed in Maryland, which is basically New Jersey, but without New York. We have a bumper sticker that says "MD! If you can dream it, we can tax it!"

They actually tried to tax rainfall here; or, more accurately, the amount of rain runoff, based on sat photos of the non-permabale surfaces on your property. They do charge 5 cents for plastic grocery bags, which is something like 50 times the actual cost - stores keep a penny to make it worth their time. All dedicated and earmarked to environmental cleanup. . .only it really isn't, of course.

Like CA, none of our taxes are the highest, but also like CA, we have ALL the taxes, and they are mostly all in the top half. Fees are killers here, particularly sale taxes on homes, labeled "county stamps", which drive closing costs through he roof. Low cost housing is heavily impacted by the cost of doing business with the state and local governments -permitting is astronomical, inspections slow and inefficient, zoning a political football, and so developers just don't see the ROI on low-to-moderate cost housing. So they don't build it, or if forced to includeit, they bury the cost into the higher-end units, if it's sustainable to do so.

Like CA and NY, MD doesn't have a revenue problem - they have a spending problem; buying votes with taxes and fees is the current paradigm. Hangar renters get a small bite of that poop sandwich. . .
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County stamp thing is new one to me. Sales tax on a home sale...don't have that one here! That's a little crazy. I close on a house on Monday. Closing costs were a very reasonable 0.5% of the price.
 
Lndwarrior said:
This year I moved from a city owned and leased hangar in Sonoma County to a privately owned hangar (in another CA county) that I am renting from another individual.

When renting the city owned hangar I had to pay property tax on the hangar. If I rent a hangar from a private party, I'm not subject to the property tax - or am I?

I'm guessing the hangar owner would pay the property tax, right?

TIA
Click to expand...

Look at your lease and talk to your landlord... I can speak for a hanger, but this is like having the family that is renting your rental property pay the property tax... ya... let me know how that works out for ya?
 
When I rented out one of my hangars I had the tenant pay the tax every year just like the county would do if you were renting one of their hangars. It is, after all, technically a possessor fee and the tenant has full use of the hangar while I, as owner/lessor get no utility from it. It's not like it's a wad of money another option is to just charge an extra ten bucks a month for rent. You can argue it either way but in the end nobody is forcing you to rent their hangar and it was never a problem finding a tenant.
 
arnoha said:
County stamp thing is new one to me. Sales tax on a home sale...don't have that one here! That's a little crazy. I close on a house on Monday. Closing costs were a very reasonable 0.5% of the price.
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It's rolled into "closing costs", but is, essentially, a sales tax on home sales - CA has it's version. . .
 
Sundancer said:
It's rolled into "closing costs", but is, essentially, a sales tax on home sales - CA has it's version. . .
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Huh, you're right. Never noticed it before, as I've never sold a house: the seller pays it. I've only bought houses. 0.1% Go figure. I do pay $130 in recording fees.
 
Silvaire said:
When I rented out one of my hangars I had the tenant pay the tax every year just like the county would do if you were renting one of their hangars. It is, after all, technically a possessor fee and the tenant has full use of the hangar while I, as owner/lessor get no utility from it. It's not like it's a wad of money another option is to just charge an extra ten bucks a month for rent. You can argue it either way but in the end nobody is forcing you to rent their hangar and it was never a problem finding a tenant.
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Sounds foolish to me. If unpaid, they aren’t going after your renter to collect, they are going after you. Much smarter to include that cost in the rent. You certainly did get utility from it, you used it to charge rent, but getting utility from property has nothing to do with whether or not you owe taxes on it.
 
Lndwarrior said:
This year I moved from a city owned and leased hangar in Sonoma County to a privately owned hangar (in another CA county) that I am renting from another individual.

When renting the city owned hangar I had to pay property tax on the hangar. If I rent a hangar from a private party, I'm not subject to the property tax - or am I?

I'm guessing the hangar owner would pay the property tax, right?

TIA
Click to expand...

I know this thread is a couple years old, but I'm looking at renting a hangar at KSTS. Can you tell me what you were paying in taxes for a T hangar? The rental rates seem awfully good for basic T-hangars at KSTS but I'm wondering if the taxes are going to eat me alive.
 
It’s a total racket in California. Most fields are Government owned including the ground and hangar you’re renting, and you as the renter get the property tax bill.

Just waiting for hem to charge me more property tax because my car is parked on the city street.

Andrew L said:
Can you tell me what you were paying in taxes for a T hangar? The rental rates seem awfully good for basic T-hangars at KSTS but I'm wondering if the taxes are going to eat me alive.
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KSNS Salinas, Ca 1000 sq ft T-hangar on the newer South side is $291.50 per month and $160ish in annual property tax. Rate are increasing shortly yo $311 per month.
 
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NordicDave said:
KSNS Salinas, Ca 1000 sq ft T-hangar on the newer South side is $291.50 per month and $160ish in annual property tax. Rate are increasing shortly yo $311 per month.
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Great. I thought it was going to be in the thousands by the way people talked about it.
 
NordicDave said:
It’s a total ratchet in California. Most fields the Government owns the ground and hangar you’re renting, and you as renter gets the property tax bill.

Just waiting for hem to charge me more property tax because my car is parked on the city street.
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On the positive side, you have a recall election coming up. We'll never be so lucky here (signatures from 25% of registered voters are required to trigger a NJ recount).
 
Lndwarrior said:
This year I moved from a city owned and leased hangar in Sonoma County to a privately owned hangar (in another CA county) that I am renting from another individual.

When renting the city owned hangar I had to pay property tax on the hangar. If I rent a hangar from a private party, I'm not subject to the property tax - or am I?

I'm guessing the hangar owner would pay the property tax, right?

TIA
Click to expand...

Yes, the owner should be paying the taxes Their name is on the deed.. Now what they can do is in consideration for a low monthly rent is make it so that you're responsible for paying any and all taxes. But as an owner, I would sure as hell not do this, clearing a tax lien on real property in CA is a real PIA X 100 to the 23rd power. Friends are friends, family is family, but business is business, and when it comes to money, people get funny :cool:.

Most California laws are written to protect the consumer, but more important to protect and give power to the tax collector.
 
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