Seeking advice on buying a used kit

[Sonex1243]

I got hit with the sales tax by the state up front since I financed my KMT kit. I had to provide an "N" number, or, a reserved one for financing which was then forwarded to the state by the bank or FAA. Then came the letter from the tax man!

I think it comes down (in my case) to a pay me now or later. It was a now for me since I had to register the "N" number with the state once they found out about it, but, I only paid the sales tax on what was financed after a big down payment. I think I saved money in the long run because I paid tax on what little I financed as opposed to the full true value when it is completed and registering with the state for the first time.

As a side note, for my annual "N" number state registration fee, I just tell them that that aircraft is not airworthy and under construction and it is waived every year until flying.

[fastj22]

I've got no problem paying the fee, I'm more than happy to play by the rules.

As a side note, does anyone know if the state will come after me for sales tax on this?

State sales tax will probably come after registration time. You will be submitting an FAA form 8050-2 which will specify the value.
When I purchased my second hand kit, Sonex (Betty Monet actually) had already signed a blank one and it was with the purchase packet. Don't send that in until you are ready to register.
The state taxman looks at newly registered aircraft and cometh. When I purchased my C150, I sent my sales tax when I registered it. 6 months later, the taxman demanded I pay the sales tax due to the registration. I went round and round with them to show I already paid the taxes. They finally found it. When I registered my Waiex, I decided to wait until he cometh. No knock at the door in three years.

[Corby202]

On registering the transfer with Sonex: Occasionally see a squawk about the $100 transfer fee

Sonex is a good company, they have good products but this transfer fee is something a government would do for revenue raising and probably why it annoys me. Keeping track of the plans or plane is fine, it takes 30 seconds to type someone's name in. One of the reasons the fee was charged was so you had access to the Sonex moderated builders forum. Well this is all changed but the fee has not. How many builders actually contact the factory, not many I suspect.Even if you have a plane that is now flying but a different owner you are still expected to pay this fee.

[fastj22]

I bought my kit second hand and paid the transfer fee because I knew I would need parts. You cannot buy Sonex specific parts without being a registered owner. Some of this probably comes from folk who might try to build their own homegrown Sonex without buying plans but want to use factory parts.

I can understand why someone who buys a flying Sonex not want to pay the fee. Especially if they will never need to replace a Sonex part. I think Sonex should only require registration when purchasing a Sonex specific part. All the Aeroconverion stuff should be available to anyone.

[vwglenn]

Mine was built when I bought it. I was upset about the transfer fee at first. It seemed a little extreme for changing my name in the file system. I've used that 100 bucks up in emailed questions about parts purchases.

[samiam]

Well, I picked up the used kit today. 800 miles round trip, 15 hours on the road. Completely overwhelmed by the number of parts and the enormity of the project, but ready to dive right in.

[wlarson861]

Glad to hear you are "all in". I think you will enjoy the build. You all ready know the Foundation and this board are here to make sure you become a gold wing pilot. Just remember it's like eating an elephant, you do it one bite at a time.

[Bryan Cotton]

Excellent rescue Mike! I look forward to the whole story, build to first flight and beyond. No deadline!

[Darick]

I've got no problem paying the fee, I'm more than happy to play by the rules.

As a side note, does anyone know if the state will come after me for sales tax on this?

I registered mine in January even though I don't expect to be flying until later this year, then filed my income tax along with the "use tax" payment. I received the tax man request to pay up, right after that, because the "use tax" department monitors the FAA registration list and evidently the use tax department and the income tax department don't talk to each other, otherwise they would have seen my payment.

I called them. It was obvious this person had no experience with airplane kits and I'm not sure she even believed me. Anyways, she was going to try and find out if I really payed it and would get back to me if there was a problem. That was 3/19 and so far I haven't heard anything.

In direct answer to your question, they ask for the payment when they see the registration show up on the FAA list of newly registered (bought) airplanes.