Shipping tax - engine overhaul

Arob16

Pre-takeoff checklist
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Arob16
Hey folks - my partner and I are about to send our Lycoming io360 engine off to Penn Yan for an overhaul later this month. My partner brought to my attention state shipping/receiving taxes on engine sales... i am looking for some guidance on this from anyone who has experience. We are specifically shipping/receiving from Texas, and the overhaul shop is in NY. My partner heard from another aircraft owner that they had been levied a hefty shipping tax for taking delivery in Texas. Different overhaul shop though.

Any guidance is appreciated!
Adam
 
FYI: It's technically not a "shipping" tax but a sales tax on the shipping/transportation costs. I don't know if the link below is an update link but it is the TX code on this sales tax.
https://texreg.sos.state.tx.us/publ...c=p_tloc=p_ploc=pg=1p_tac=ti=34pt=1ch=3rl=303

Thanks for that tip. So in our case the shipping is baked into the quote for the engine overhaul. They offer free shipping to and from their shop. So there isn’t a shipping/handling line item to levy a sales tax on.
 
So in our case the shipping is baked into the quote for the engine overhaul.
Don't know. If the TX shop doing your engine change has a "resale" tax certificate then probably. If your concern is that once the engine is replaced and you take possession of the aircraft that you will get a separate tax bill, that would be a first in my experience. If in doubt ask your shop as it is usually their requirement to collect all taxes.
 
Don't know. If the TX shop doing your engine change has a "resale" tax certificate then probably. If your concern is that once the engine is replaced and you take possession of the aircraft that you will get a separate tax bill, that would be a first in my experience. If in doubt ask your shop as it is usually their requirement to collect all taxes.

excellent feedback, thanks - we will definitely ask the shop doing the removal/install.
 
how much is shipping? If it is $500, the Texas sales tax might be $45.
(seem like a minor concern.)
 
Seems like the sales tax on the overhaul would dwarf the shipping taxes, what’s NY tax rate, 7%?
FWIW, Florida has no sales tax on aviation maintenance.
 
No sales tax on aviation parts and maintenance in NY state either.

Question appearing to be answered (in record time) I can only add that Chemgeek blew my mind by identifying something NY doesn't (over)tax.
 
Hey folks - my partner and I are about to send our Lycoming io360 engine off to Penn Yan for an overhaul later this month.

Of the premium engine shops Penn Yan was the most expensive, other than Victor, but with a fraction of the machining.

For my O-470R Quote were:
$25,800 Airmark
$27,300 Signature
$29,500 Zephyr
$36,200 Penn Yan
$39,950 Victor
Western is good too, but didn’t have their bid handy.

Penn Yan Performed the least amount of machining with an OK warranty. Victor performs 5x the machining for blue printing cylinders, balancing, non-destructive testing with a 5 year warranty and the only engine that bumps vRef up to the full price of the overhaul over the standard.

Zephyr blueprints the valve train, but wants and extra $1500 to fully balance the rotating mass. Signature and Airmark full balance the rotating mass, but just install the cylinders out of the box.

Not trying to sell anyone on one shop verse another, but demand a full list of services performed. They are all pretty cagey about what you’re buying as the bid sheets are fairly scant with listed services.

Get the list of services performed by Western & Victor as a benchmark and send the shop your List of services by email for them to respond. Pretty amazing how thee shops very. For example, they all say they “balance the crank and rods”. Rods are balanced for total weight are per Overhaul manual, but the better shops also balance for equal weight distribution big end to small end. There is balancing and then there is “balancing”.

Penn Yan performed the least amount of work, for nearly the highest price and so-so warranty.

Bottom line:
Airmark Overhaul performed essentially the same overhaul services with similar warranties as Penn Yan for $10,600 less!
 
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