Brian, I guess you get me off my KR couch with this question to fire up my CPA brain.
What the various states want primarily is there cut of any sales tax you avoided in purchasing material from out of state sources. Most states have what they refer to as a "use tax" which you report these purchases and pay the state sales tax rate. If you fail to report these as you go along, most only require a yearly reporting, you could be subject to penalty and interest if you wait until you have a finished airplane. Yes, they do charge penalty and interest. If you get an N number, as Mark stated, you now have piece of real property subject to property tax. To go one step furthur, simply acquiring and N number in anticipation of building puts you on the property tax rolls much like the holder of a copyright or patent would be subject to an intangible property tax. Sounds unbelieveable but true. So, pay the sales tax as you go, get your N number late in the game and you will save yourself heartache and money. Dana Overall 1999 & 2000 National KR Gathering host Richmond, KY i39 RV-7 slider, Imron black, "Black Magic" Finish kit 13B Rotary. Hangar flying my Dynon. http://rvflying.tripod.com/aero1.jpg http://rvflying.tripod.com/aero3.jpg http://rvflying.tripod.com/blackrudder.jpg do not archive
