Legally Avoid Tax for Aircraft Purchases

Anyone who buys or flies an aircraft in California is subject to taxation, but purchasers can save thousands of dollars on sales and use tax.

Of the 360,000 general aviation aircraft currently registered in the United States, 11% are based in California. Additionally, approximately 10% (250-400) of all new and used aircraft sales occur in California each month. California regulations dictate that aircraft purchased out of state, but brought into California within 90 days, will be presumed to have been purchased for use in the state. In other words, a "use" tax could be levied on anyone, in any state, if they land in California. These data alone point to the fact that aircraft purchasers, as well as CPAs and attorneys servicing clients who purchase aircraft, are well advised to turn to specialist firms like Aero & Marine Tax Professionals to avoid sales and use tax burdens.

At first glance, seeking an exemption seems simple enough.

For several reasons, though, ensuring that you are completely absolved of any sales or use tax involves several complicated steps, tremendous documentation and often several trips to the state capital in Sacramento. One mis-step can completely undermine your efforts, leaving you with a stiff tax levy. Given the expensive consequences of failure, many attorneys, CPAs and other business professionals are now turning to specialists like our company that focus solely on defending aircraft purchasers against the California State Board of Equalization (BOE). What makes us unique is that we guarantee the service. As long as the client engages us before possession of the aircraft, and then explicitly follows our instructions, they get a written guarantee that they will legally avoid California sales and use tax, or our entire service is gratis. We've never had to pay anyone back, though, because we've won every case.

Thomas Alston is the President of Aero & Marine Tax Professionals, the pre-eminent experts in California and Arizona sales tax involving airplanes, vehicles or vessels. The company shows purchasers how to avoid sales tax and to make certain the full value of your next aircraft, vehicle or vessel goes into their pocket--not the Government's. He has successfully filed hundreds of tax returns on behalf of clients with the California State Board of Equalization.