The tax man cometh

[Tripod]

I felt the unsecured property tax assessment on my Tri-pacer was too high this year, so I called the assessors office and requested a form to have it re-evaluated after I provide more information, etc. During the conversation I also learned something I did not know - aircraft are assessed at market-value PLUS sales tax. At least, that's the way they do it here in California. When I questioned this, even the assistant I was talking with in the assessors office agreed that it seemed unfair. But, it's the law. What a crock.

If that's not enough, I also received something else new to me - a tax bill for "possessory interest" in the new hangar I rent. I was dumbfounded. It's not a lot of money, but it is the principle. I don't run a business out of my hangar. I could be wrong, but my understanding of the purpose of the possessory interest tax was to level the playing field between businesses that operated on private property and public property. In the case of an airport, there could be an FBO with a facility on his own land adjacent to a public airport. He would have to pay property taxes on his land and improvements. Then there could be a competitor FBO operating out of a facility on the public airport land and that fellow would not pay property taxes. So, some years ago the possessory interest tax came into being. So my question still remains; why do non-business hangar occupants have to pay the tax as well. I just registered a complaint with my state representative. It will be interesting to see how they respond.

-dave

[Frank Green]

Unsecured property tax, possesory interest? I thought things were bad here in NY with taxes on everything that moves or not. Don't let Albany know about such things PLEASE!!!!!

[pmanton]

I wound up stuck in San Diego for a while. We were planning to sell a couple of homes and move to an airpark. My Washington State registered shortwing came under the scrutiny of the local tax man. I showed up at the assessors office with proof that I was a Washington Resident and had paid my tax in Washington.

Tough titty--pay up or else. :evil:

That was the bad news. The good news is that in San Diego County my plane is a classic and if displayed at regular intervals is tax exempt. since I was hangared at EAA Chapter 104 displaying the plane was a cinch. Further good news is that the plane is now in our very own hangar at Indian Hills Airpark in Salome AZ. :D

Cheers:

Paul
N1431A
2AZ1

[Jinkers]

CA is bankrupt. The Tax man is going to come looking for every penny he can squeeze. Since you own an airplane you are obviously rich and therefore need to pay more taxes.

[Curly]

Will you blokes please stop posting tax details ;) - our bloodsuckers haven't thought of these and we sure don't want to give them any ideas!