Property tax harassment by our greedy county

BigBadLou

BigBadLou

Final Approach
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Aug 6, 2014
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TX - the friendliest state
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Display name:
Lou
I live next to one of the worst counties in the state. They are well known for being a-holes. To everybody.
And unfortunately, the only airport I could find with an available hangar is part of that county.

The county greed-collectors sent me a nice letter that I owe them business tax from my airplane. Unless I can prove that I don't use it for business. The affidavit must be triple-stamped, signed in blood of a newborn and notarized. If I do not comply and prove that I am innocent, they will issue warrant for my arrest for tax evasion. And impound the vehicle for an auction to fill their greedy pockets.

So this brings up numerous questions.
The most important being: since when can a body of our government assume automatic guilt?
Whatever happened to "innocent until proven guilty"?

Follow-up questions:

Why does that county specifically get to be greedy and line their pockets? Just because the vehicle happens to be parked there? If an aircraft makes money, it's not when parked, it is in flight. When in flight, it is not part of any county. Why can't other counties claim business tax if an airplane lands there for a business meeting? *rolleyes*

Who ratted me out? I asked other pilots around but haven't heard of anybody else being blackmailed like this.

Why would they assume that I own any business and make profits using an aircraft when there are clearly no records of me owning any business, I am not a CPL holder and the airplane is registered in my real name, not any corporation entity?

Bonus question:
Should I call and ask the "nice lady" who put her name on the letter whether she is also a victim to this tax ransom and whether she is required to pay tax on the moneymaker between her legs? Because let's face it, it is capable of turning very good profit. So automatically, she should be taxed. At least based on the logic they employed when writing the letter to me.
 
Of course the question I forgot to ask while typing and with brain clouded from the amazement at this bullying tactics:
Any smart lawyers here? And what would they recommend? Ignoring this if it's only scare tactics? Giving in and trying to prove my innocence?

I wonder if the state really gave them so much power that they can automatically assume guilt and start sending out bills to whomever they please. Especially with 0 homework on their side.
 
I have some "friends" in Joisey, wanna me make a call?
 
Here, an aircraft is taxed on where it is located on January 1. It generally isn't worth it to me, but I know people who park their airplanes in Tennessee for a few days every year (in late Dec/Early Jan) to avoid property taxes.

Might be worth parking your airplane at another county's airport for a the appropriate period next year...
 
I'd send em a copy of my PPL showing I do not hold a commercial rating and add the relevant section of the FAR's stating I cannot be compensated without a CPL
 
JCranford said:
I'd send em a copy of my PPL showing I do not hold a commercial rating and add the relevant section of the FAR's stating I cannot be compensated without a CPL
Click to expand...

This.

I would write a letter and send it certified, return receipt requested, with a CC to the county commissioner(s). I would first quote the FARs, and state that I cannot fly for hire, because I am not licensed to do so, and I am in compliance with those FAA regs. I would then include my PPL number, and include the FAA records division address and suggest that they contact FAA if they want to independently confirm the same thing. Then state furthermore that the plane is not LLC or Corp registered, along with a print out of the same from the web, and a pic of the plane with its tail number visible; state that they can also independently verify if they want. Then include the stupid notarized affidavit as an attachment (as a PS). The above should nip in the bud any idea that they can push you further.
 
BigBadLou said:
The county greed-collectors sent me a nice letter that I owe them business tax from my airplane. Unless I can prove that I don't use it for business
Click to expand...

I ran into this all the time with the SOX auditors. I finally looked at them and said "Other than having absolutely no evidence in the affirmative, how exactly, would you like me to prove a negative?" That actually proved to be a very effective phrase from then on. Not sure it would work here, though.

Is this Tarrant Co? They've been on a tear lately with taxes.
 
Come to California. If you're gonna get taxed to death, might as well do it here where the scenery is pretty..;)
 
Texas must really be hurting for money...

In 1994, I received a speeding ticket in Amarillo, which I promptly paid. I was flying in the Air Force then and a speeding ticket would always make its way to your commander, so I know I paid it. Of course, they would only take cash or money order, no personal checks.

Fast forward to 2009. I receive a letter from an attorney's office in Amarillo as part of Texas' "Warrant Roundup" saying I owed $65 for the speeding ticket in Amarillo from 1994. I didn't pay it and there will be a warrant out for my arrest, blah, blah, blah. I figured this was some sort of mistake since it had been 15 years since the ticket and I hadn't heard anything. I called the attorney's office and they said they are just acting on what the Potter County court sends them. I have to take it up with the judge. I got in touch with the judge. I figured... Texas, pretty conservative, pro-military... I'd just tell the judge what happened and it'd be all forgiven. What actually happened was he basically called me a liar and threatened me with a warrant for my arrest if I ever set foot in Texas unless I could produce a receipt for the money order. I was incredulous. I asked him if he really thought I had a 15 year old receipt for a money order for a speeding ticket that I paid. Even if I had kept that money order for a while, after 7 years and 3 military moves, I probably would have pitched it thinking "why am I still dragging this thing around?" Basically, the guy was a dick and just wanted his $65.

So, I basically ignored it. I wasn't planning on ever going to Texas again so, screw them... I would get an obligatory letter about twice a year with the same threat, and I would pitch it. Well, finally they broke me down. I'm living overseas now for work and I got a letter in the mail at my new address in the US, which got forwarded to me in Germany. I got a little concerned that if they actually did put a warrant out (doubtful) and Germany found out, it may cause problems. Long story, short I paid it. It pained me to do it but I paid it. So Texas was successful in shaking me down for $65. I was just surprised that there wasn't hundreds of dollars of late fees tacked on.
 
kyleb said:
Here, an aircraft is taxed on where it is located on January 1. It generally isn't worth it to me, but I know people who park their airplanes in Tennessee for a few days every year (in late Dec/Early Jan) to avoid property taxes.

Might be worth parking your airplane at another county's airport for a the appropriate period next year...
Click to expand...

Here the taxing authorities go by the official FAA registration address. Parking it somewhere else makes no difference. Would that it did!
 
A few years ago, I made an emergency landing in another state, at a county owned airport.
I was on the ground for less than 4 hours, fixed the plane, then took off for home.
A few months later, I got a county bill for a tie-down, and bills for state registration, state sales tax, and state value tax. Plus fines dating back to the year the plane was manufactured. 1976.
I didn't own the plane. I was just borrowing it. They got my information from the airport log, then paid someone to track down all the details.
I contacted the owner of the plane, and he had a complete duplicate set of bills in his name also.
So did the guy the current owner bought the plane from.
My friend, who has more money than God, sicced his lawyer on them, and it got very ugly. We all ended up in court to testify, etc. We won.
In the end, the state agreed to pay all the court costs and lawyers fees, and give us all a small settlement for fraudulent prosecution, but we had to agree to sign a non-disclosure, swearing never to name names.
 
Shepherd said:
In the end, the state agreed to pay all the court costs and lawyers fees, and give us all a small settlement for fraudulent prosecution, but we had to agree to sign a non-disclosure, swearing never to name names.
Click to expand...
After that kind of shakedown attempt, I'd never sign anything. Then I'd call the FBI and the US Attorney's office. Let them sweat.
 
Shepherd said:
A few years ago, I made an emergency landing in another state, at a county owned airport.
I was on the ground for less than 4 hours, fixed the plane, then took off for home.
A few months later, I got a county bill for a tie-down, and bills for state registration, state sales tax, and state value tax. Plus fines dating back to the year the plane was manufactured. 1976.
I didn't own the plane. I was just borrowing it. They got my information from the airport log, then paid someone to track down all the details.
I contacted the owner of the plane, and he had a complete duplicate set of bills in his name also.
So did the guy the current owner bought the plane from.
My friend, who has more money than God, sicced his lawyer on them, and it got very ugly. We all ended up in court to testify, etc. We won.
In the end, the state agreed to pay all the court costs and lawyers fees, and give us all a small settlement for fraudulent prosecution, but we had to agree to sign a non-disclosure, swearing never to name names.
Click to expand...

Too bad. Would be nice to know (and avoid) that county. Hard to avoid a state.

I've heard about pilots getting bills for landing fees, but that's ridiculous.
 
Sluggo63 said:
Texas must really be hurting for money...

In 1994, I received a speeding ticket in Amarillo, which I promptly paid. I was flying in the Air Force then and a speeding ticket would always make its way to your commander, so I know I paid it. Of course, they would only take cash or money order, no personal checks.

Fast forward to 2009. I receive a letter from an attorney's office in Amarillo as part of Texas' "Warrant Roundup" saying I owed $65 for the speeding ticket in Amarillo from 1994. I didn't pay it and there will be a warrant out for my arrest, blah, blah, blah. I figured this was some sort of mistake since it had been 15 years since the ticket and I hadn't heard anything. I called the attorney's office and they said they are just acting on what the Potter County court sends them. I have to take it up with the judge. I got in touch with the judge. I figured... Texas, pretty conservative, pro-military... I'd just tell the judge what happened and it'd be all forgiven. What actually happened was he basically called me a liar and threatened me with a warrant for my arrest if I ever set foot in Texas unless I could produce a receipt for the money order. I was incredulous. I asked him if he really thought I had a 15 year old receipt for a money order for a speeding ticket that I paid. Even if I had kept that money order for a while, after 7 years and 3 military moves, I probably would have pitched it thinking "why am I still dragging this thing around?" Basically, the guy was a dick and just wanted his $65.

So, I basically ignored it. I wasn't planning on ever going to Texas again so, screw them... I would get an obligatory letter about twice a year with the same threat, and I would pitch it. Well, finally they broke me down. I'm living overseas now for work and I got a letter in the mail at my new address in the US, which got forwarded to me in Germany. I got a little concerned that if they actually did put a warrant out (doubtful) and Germany found out, it may cause problems. Long story, short I paid it. It pained me to do it but I paid it. So Texas was successful in shaking me down for $65. I was just surprised that there wasn't hundreds of dollars of late fees tacked on.
Click to expand...
A very similar thing happened to my brother. A warrant was sworn out for him but since he was law enforcement he got a call from someone he knew who told him he needed to try to resolve it. Fortunately his wife filed everything and was able to dig up the receipt for the money order.
 
Here, the county opens up the hangars (and searches the tiedowns) every January looking for based aircraft. You're there the first week in January, you can expect a tax bill. My fun was trying to convince them that their "blue book" value of my Navion didn't apply when it had no engine in it. Of course, later when it was probably worth over twice what they had it assessed at, I didn't argue.

The state mines the FAA database looking to see if you've paid your sales/use tax. However, they don't seem to aggressive because I answered their letter with "Yeah, I paid it" an that was the last I heard of it.
 
Just because you hold a ppl ,doesn't mean someone didn't dime you out,saying you are doing commercial work with the aircraft.
 
OP: what county, and is the plane held in corporate name?
 
SCCutler said:
OP: what county, and is the plane held in corporate name?
Click to expand...
The county he is talking about is Williamson County. I'm based in the same county and I've heard we have one of two counties in the state of Texas that charges us property tax on hangars. If heard of them taxing airplanes before, but oddly enough I only know two guys they went after and it was only in one city, the one where Lou is now. One of my friends was told his private plane was being taxed as a $1M plane... it's a Cessna 185. He told them he would sell it to them at half price.
 
hotprops said:
del corp America is your friend
Click to expand...

If by "friend," you mean, "the deception scheme by which we think we can evade taxes by titling the plane in a corporate entity from another state, only to subsequently find out that the fact of corporate name increases the likelihood that the plane will be taxed as a business asset, and further, that the foreign-state corporation is required by law to secure local authority to operate in the state and file tax returns with the state in which you base the aircraft or suffer penalties at law," then yes, they are your "friend."

Otherwise...
 
Lowflynjack said:
The county he is talking about is Williamson County. I'm based in the same county and I've heard we have one of two counties in the state of Texas that charges us property tax on hangars. If heard of them taxing airplanes before, but oddly enough I only know two guys they went after and it was only in one city, the one where Lou is now. One of my friends was told his private plane was being taxed as a $1M plane... it's a Cessna 185. He told them he would sell it to them at half price.
Click to expand...

I'd be very interested to read the documents asserting the taxation claim, if OP is willing to share. Would not be looking for $$$, and still to be treated as atty-client confidential.

If interested, PM me.
 
SCCutler said:
is the plane held in corporate name?
Click to expand...

From my original post:
BigBadLou said:
I am not a CPL holder and the airplane is registered in my real name, not any corporation entity ...
Click to expand...

The letter subject line actually says: "collection of business tax for personal property" (or similar, can't recall it 100% right now)
Isn't that a great oxymoron?
But that's what we get for ox morons running the lowest form of government (aka: the county).
 
mscard88 said:
I have some "friends" in Joisey, wanna me make a call?
Click to expand...
Thank you for the offer but I got plenty of friends (and my own toys at home) that I could employ if this was personal.
But this is a fight with a dumb-as-sh*t government body, not an individual. And "taking care" of an individual is unlikely to make the bill go away.
Unless you meant to have some friends pay that individual a visit to make them "reconsider" the paperwork and make it disappear. :D
 
Delaware corporations won't get you out of personal property tax if the airplane is hangared in any of the states around here. The ownership is of significance when it comes to the tax liability.
 
Personally-owned aircraft, in general, should not be taxed as BPP unless you use it principally for business purposes.
 
Harris County (TX) sent me a pre-filled form on both of the last two planes I've owned (one hangared in Harris county, one not). One came several years into ownership, the other in the second year. In both cases, simply wrote on the form "Not subject to business property tax in Harris County." Never heard another thing back from them.
 
This thread reminds me that if I ever did purchase an aircraft in a manner that triggers sales/use tax, I'll be keeping the document that shows it was properly paid in a very safe space, ready to produce whenever they conveniently forget I paid and try to get me again.
 
I just received this letter from Harris County. Not sure why as I live and base my plane in Montgomery County. Does anyone who has gotten this love letter have any update? My plane is registered to me, no LLC or anything like that.
 
Shepherd said:
A few years ago, I made an emergency landing in another state, at a county owned airport.
I was on the ground for less than 4 hours, fixed the plane, then took off for home.
A few months later, I got a county bill for a tie-down, and bills for state registration, state sales tax, and state value tax. Plus fines dating back to the year the plane was manufactured. 1976.
I didn't own the plane. I was just borrowing it. They got my information from the airport log, then paid someone to track down all the details.
I contacted the owner of the plane, and he had a complete duplicate set of bills in his name also.
So did the guy the current owner bought the plane from.
My friend, who has more money than God, sicced his lawyer on them, and it got very ugly. We all ended up in court to testify, etc. We won.
In the end, the state agreed to pay all the court costs and lawyers fees, and give us all a small settlement for fraudulent prosecution, but we had to agree to sign a non-disclosure, swearing never to name names.
Click to expand...

America, the Land of the Fee...
 
Arrow115 said:
I just received this letter from Harris County. Not sure why as I live and base my plane in Montgomery County. Does anyone who has gotten this love letter have any update? My plane is registered to me, no LLC or anything like that.
Click to expand...

Right off the bat, send them a letter telling them that your plane is personally owned, and is not used as a business asset ("BPP," or "Business Personal Property").
 
SCCutler said:
Right off the bat, send them a letter telling them that your plane is personally owned, and is not used as a business asset ("BPP," or "Business Personal Property").
Click to expand...

Thank you for your quick reply. I will get a letter sent out first thing Monday morning. I am hoping that will be the end of it.
 
Arrow115 said:
Thank you for your quick reply. I will get a letter sent out first thing Monday morning. I am hoping that will be the end of it.
Click to expand...
I never heard another thing from them in both my cases. The first time, the plane in question (PA28-180 registered in my name) was based in a Harris County and I lived there at the time. I simply wrote what Spike said on the form and mailed it in. Should take care of it.
 
Either get yourself elected and change the laws or move.
 
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