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  #16  
Old 11-15-2017, 05:57 PM
LEZ1675 LEZ1675 is offline
Bill Welter
 
Join Date: Feb 2010
Location: Colorado Springs, CO
Posts: 544
Default Re: Uh-Oh, Here We Go - State Sales Tax

Still arguing with the young paper-pusher at Dept Of Revenue.

I provided the Colorado Revised Statutes reference by Rick above, that Aircraft Parts are not taxable

------------------

AIRCRAFT PARTS
The sales and use tax exemption for aircraft parts applies to parts that are permanently affixed to the aircraft or are component parts.

This includes, but is not limited to, fuselage parts, parts for the aircraft’s engine(s), seats permanently affixed to the aircraft, and paint for the aircraft.

------------------

Well, the guy starts telling me that foam, fiberglass, bolts, epoxy, etc. are not permanently affixed parts, and they are not component parts! I tell him I sure hope they stay permanently affixed! And that Of Course they are component parts!


It's like arguing with my ex-girlfriend, no matter what you say that makes perfect logical sense, it doesn't matter. She just wanted to win the argument, and didn't listen to anything factual or logical.


Grrrr!

to be continued....
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  #17  
Old 11-16-2017, 01:14 AM
ZG4Me ZG4Me is offline
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Join Date: Sep 2006
Location: Colorado, KLMO nearest
Posts: 1,020
Default Re: Uh-Oh, Here We Go - State Sales Tax

Quote:
Originally Posted by LEZ1675 View Post
Still arguing with the young paper-pusher at Dept Of Revenue.

I provided the Colorado Revised Statutes reference by Rick above, that Aircraft Parts are not taxable
...
After much pondering... Technically you don't have an aircraft to attach the exempt parts to until you have an airplane. Think you're on the right track though!

Might consider interjecting: "Look, you want your tax, how about we settle on ??? so we can end this, and you can move on to..."

Keep in mind it's Colorado that wants the sales/use tax, not your municipality (unless I missed something). Colorado sales/use tax is 2.9%.

Rick
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  #18  
Old 11-16-2017, 11:21 AM
LEZ1675 LEZ1675 is offline
Bill Welter
 
Join Date: Feb 2010
Location: Colorado Springs, CO
Posts: 544
Default Re: Uh-Oh, Here We Go - State Sales Tax

Thanks, Rick

Hopefully you wont get "the letter" too, but all 5 of the builders that I know here at KFLY have gotten it. I gave them a case number from another builder, maybe they'll get it straight

Yup, I believe they want 2.9% Consumer Use Tax about $47K which is about $1400, not terribly bad. But I'm sure they'll want penalties and interest since 2010, too.

The wording I'm hinging my defense on is "Component parts" that are "permanently affixed to the aircraft"
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Last edited by LEZ1675 : 11-20-2017 at 12:23 PM.
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  #19  
Old 11-30-2017, 04:46 PM
LEZ1675 LEZ1675 is offline
Bill Welter
 
Join Date: Feb 2010
Location: Colorado Springs, CO
Posts: 544
Default Re: Uh-Oh, Here We Go - State Sales Tax

I wasn't getting anywhere with the obstinate CDOR guy arguing over the phone. I called AOPA legal, gave me the name of a lawyer, he had his Tax Attorney call CDOR, still no luck.

I took my plans, builder log, foam, BID and a spare winglet that Steve R. had, and went up to Denver and met with the CDOR guy. He kept saying that the part were taxable because they were not "permanently affixed" or "component parts", which of course they were.

After an hour, he came around. I agreed to pay tax on things that I bought that were not part of the plane (cups, stir sticks, sandpaper, tools, etc), and he'll get this approved and send me the bill.

Crossed fingers...


Also, he asked why didn't I just buy a used Cessna? He said that I could get a good flying one for the price of a used car - about $4,000 according to the Bill Of Sales he gets from people that he collects sales tax from ! Ha!
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Last edited by LEZ1675 : 12-01-2017 at 08:10 PM.
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  #20  
Old 12-01-2017, 02:41 PM
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TMann TMann is offline
Got Foam?
 
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Default Re: Uh-Oh, Here We Go - State Sales Tax

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Originally Posted by LEZ1675 View Post
Also, he asked why didn't I just buy a used Cessna? He said that I could get a good flying one for about $4,000 according to the Bill Of Sales he gets from people that he collects sales tax from ! Ha!


Did you offer him a ride once you get the 40 flown off.
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  #21  
Old 12-06-2017, 06:16 PM
LEZ1675 LEZ1675 is offline
Bill Welter
 
Join Date: Feb 2010
Location: Colorado Springs, CO
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Default Re: Uh-Oh, Here We Go - State Sales Tax

Well, it looks like driving to Denver, and meeting with the DOR rep and sitting there explaining this whole deal over and over until his eyes glazed over and he gave in, worked!

They said before that the value of the aircraft parts was $47,580, but I just got a letter stating that the value of taxable material is now just $893!

Instead of owing them $1380, I now owe them $26. I saved $1354 by just going up there and meeting with the guy!

Yippee!
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