New Taxes for Washington State

[Tom-D]

From EAA elerts

http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/House Bills/3176.pdf

This EAA Legislative Alert is being sent, as a member service, to all EAA members in Washington.
The Washington state House of Representatives just introduced House Bill 3176 that will impose a .005% (1/2 percent) excise tax on all aircraft in the state of Washington. The bill also states that if you elect to register your aircraft in another state and that state does not have a excise tax or is less than this new WA excise tax you will be required to pay the difference. This addition to the state of Washington tax law is in Sec. 1002 of this bill and it reads:

Sec. 1002. RCW 82.48.020 and 2000 c 229 s 4 are each amended to read as follows:

An annual excise tax is imposed for the privilege of using any aircraft in the state. The amount of the tax is five-tenths of one percent of the taxable value of the aircraft, as determined under section 1003 of this act.
The tax imposed under this section must be collected annually or under a staggered collection schedule as required by the secretary by rule.
Persons who are required to register aircraft under chapter 47.68 RCW and who register aircraft in another state or foreign country and avoid the aircraft excise tax imposed under this section are liable for the unpaid excise tax. A violation of this subsection is a gross misdemeanor.
The department of revenue may, under chapter 82.32 RCW, assess and collect the unpaid excise tax imposed under this section, including the penalties and interest provided in chapter 82.32 RCW.
Except as provided under subsection (3) of this section, a violation of this chapter is a misdemeanor punishable as provided in chapter 9A.20 RCW.
As proposed in the bill, this new excise tax will take the place of the current annual registration fee. So if you own a single-engine fixed wing airplane worth $100,000 your current annual registration fee is $65.00. Under the proposal in the bill that annual fee (excise tax) would jump to $500.00.

For comparison purposes in the state of Washington - non-commercial boats pay an annual excise tax of .005%, but only if the boat is over 16' in length ; and if you own a car you only pay an excise tax of .003% at the time you purchase the car, but not annually. Information from the Washington State Department of Revenue web site.

EAA is urging you to take immediate action.

Contact your state legislators to protest this new and unwarranted excise/property tax on your aircraft.
Washington State House of Representatives - http://www.leg.wa.gov/house/Pages/default.aspx
Washington State Senators - http://www.leg.wa.gov/Senate/Senators/Pages/default.aspx

The time to act is NOW...

Post your feedback or comments on this thread on Oshkosh365.

Randy Hansen, EAA # 590242
Government Relations Director

EAA - The Spirit of Aviation - www.eaa.org

Phone: 920-426-6103 or 6522
Fax: 920-426-4885 or 6560

 

[wsuffa]

Soak the "rich" pilots.

Sigh.

 

[ScottM]

Soak the "rich" pilots.

Sigh.

Soak the rich ______ (fill in the blank)

Sigh!

But there is something to think about. Some people do try to avoid these taxes by making themselves a Delaware corporation and registering in that state. But their planes use the facilities in the states that the person resides. Is it really fair that some people get to use those state's facilities for free while the other people who register in Washington have to subsidize them?

I don't that is fair and this legislation would help to close that loop hole.

But what is needed is if you are a Washington resident, own an airplane that is not in Washington, you do not have to pay this tax.

So the new tax is not such a great thing, but at least they are also trying plug a loop hole.

 

[AuntPeggy]

Does it apply to visitors? We might be interested in the 2-weeks to taxi program for the Sportsman 2x2. I wonder whether this tax applies?

 

[TangoWhiskey]

This tax, applied when you purchase the vehicle, would make sense to me. To impose it every year is not good.

For example, I could be satisfied with "pay excise tax at purchase, plus $65/fee per year for registration." I don't pay tax on my car every year--just when I purchase it; after that, it's a nominal registration fee.

 

[Lawreston]

I just received my annual UOMe from the State of Maine: same as last year - $54.90 for
Excise Tax and $10.00 Registration. The excise tax rate is 3 mils(5th model year or older year).

Of course, we won't discuss the Use Tax assessed to those out of state
aircraft which "visit" Maine for more than 30 days(repairs time not included). That factor remains a hot potato.

HR

 

[wsuffa]

This tax, applied when you purchase the vehicle, would make sense to me. To impose it every year is not good.

For example, I could be satisfied with "pay excise tax at purchase, plus $65/fee per year for registration." I don't pay tax on my car every year--just when I purchase it; after that, it's a nominal registration fee.

Virginia has the much despised personal property tax that applies to cars, boats, planes, and etc.