Where Do You Register An Airplane In The State Of Tennessee

I have a question for anyone who may take gone downward this road. I purchased my shipping from an individual in Minnesota and did not pay a sales tax. My plane is hangared in Kentucky although I reside in Tennessee. Received a letter from the tax folks in TN wanting to know many details about the sale. Bottom line, 7% revenue enhancement on sales cost
Q- As a TN resident, is it typical to pay sales tax on a aeroplane not based in the state? The grade specifically talks about if the A/C is domiciled in TN country tax apples.

Cheers
James331 Ejection Handle Pulled

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lol.... Letter is from a TN Tax Auditor
FORANE En-Route

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Seems TN is very aggressive about going after this sales tax. If yous register it in a corp entity then afterwards decide to re-register it in your own proper noun, they will desire their 7% again. Can't assistance on your question of information technology based out of state.
MichiPilot Pre-takeoff checklist

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The state you (or your LLC) reside in is irrelevant. Sales or use tax are usually assessed in the state where an aircraft is primarily based. If you lot purchase information technology in state, yous pay sales tax. If you buy out of state in a tax exempt auction there, you pay use revenue enhancement in the country the aircraft if primarily based.
James331 Ejection Handle Pulled

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My question is more tactical, how did these people know your plane was there?
Nosotros're you pumping gas on your actual tail number?
Did you lot tell the people you were renting the hangar from your tail number, which was none of their business?
MichiPilot Pre-takeoff checklist

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FAA registry -- there is a considerable business in tracking due north-number transactions at Oklahoma City.
I don't know those States laws but I had a similar situation. Bought plane in Florida. Took information technology to Oregon and hangared it there. I'one thousand a Washington resident. Couple years later Washington tracks me down and wants coin. I was expecting information technology somewhen and had all the documentation set to become. While I did wing it in Washington a few times, I never bought gas or paid a tie down in that location. That let me off the hook.
James331 Ejection Handle Pulled

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So registered the airplane in the wrong country?
He lives in TN. His address on the registration is TN. The airplane is based KY. Simply when KY catches upwards with him they have a personal holding tax for shipping based in KY.

Last edited: December 13, 2018
James331 Ejection Handle Pulled

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I'll stick to my argument
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State sales and employ tax is a complicated area and each state is different and has dissimilar rules and interpretations. My proffer is consult with a tax attorney or a CPA in Tennessee.