AIRCRAFT TRANSACTIONS
HAVE SOME UNUSUAL CIRCUMSTANCES THAT, WHEN STRUCTURED PROPERLY, CAN BE EXEMPT FROM CALIFORNIA SALES AND USE TAX LIABILITY. OUR AIRCRAFT EXEMPTION PROGRAM INCLUDES A DETAILED ANALYSIS OF THE BUYER'S NEEDS ALONG WITH THE IMPLEMENTATION OF A STRATEGY WHICH WILL ACCOMPLISH THEIR STATED GOAL OF EXEMPTING THE AIRCRAFT FROM SALES
OR USE TAX.


It is a plain and simple fact that all aircraft registered in California will be audited by the State Board of Equalization.

The Board acquires information from the FAA in Oklahoma City each month. This information discloses pertinent aircraft details as well as the names and addresses of the owners of aircraft registered in California.

It is the Board’s responsibility to ensure that owners of newly registered aircraft have complied with the state’s rules, laws and regulations by paying any sales or use taxes due or filing an aircraft tax return claiming exemption from its tax. If the sales taxes were not paid or you fail to meet the legal requirements of the exemption process, you will be assessed tax, interest and penalties from the date of the aircraft purchase.

Depending upon your unique circumstance, the interest and penalties may equal or even exceed the original tax due on the aircraft purchase. Remember, it is your responsibility to file the aircraft tax return and pay the tax or file for exemption. You generally have one year in which to complete your paperwork, unless the Board contacts you sooner. If you do not file within the time period specified, the State has as many as nine years to locate you and assess the tax, interest and penalties due.

You may exempt your aircraft from sales or use tax by qualifying for one or more of the aircraft exemptions as provided for in Regulations 1620, 1593, 1610, 1661, or Sections 6366, 6366.1 or other Revenue and Taxation Code provisions.

OUR UNPRECEDENTED SUCCESS IN SECURING AIRCRAFT EXEMPTIONS ... WHERE OTHERS HAVE FAILED ... HAS MADE OUR TAX PROGRAM LEGENDARY. WE ARE THE ONLY FIRM THAT OFFERS TAX INSURANCE. QUITE SIMPLY, IF YOU FOLLOW OUR WRITTEN LEGAL DIRECTIONS AND RECORD RETENTION REQUIREMENTS AND YOUR CLAIM FOR EXEMPTION FAILS, WE WILL PAY YOUR TAX, INTEREST AND PENALTIES TO THE STATE BOARD OF EQUALIZATION.


If we are hired prior to the purchase and delivery of your aircraft, we can control all aspects of the legal requirements and we can guarantee your transaction will be exempt from sales and use taxes. In fact, we offer a Money-Back Guarantee or Sales Tax Payment Guarantee if you choose our Aircraft Exemption Program.

Money-Back Guarantee:
If you have followed our guidelines and submission schedule, and at the conclusion of the administrative appeals process the State determines your aircraft is subject to tax, we will refund all money paid to us for our services.

Tax Guarantee (for an additional fee):
If you have followed our guidelines and submission schedule, and at the conclusion of the administrative appeals process the State determines your aircraft is subject to tax, we will reimburse you for all taxes you have to pay the State on your aircraft.

In consideration for these guarantees, you give us permission to take your case to court as a last chance resolution of your tax issues.

We can offer and stand by these guarantees because we have more experience than any other company in the state which specializes in sales and use tax matters and aircraft exemptions. We maintain the largest private sales and use tax library in California. Our consultants have devoted their entire professional careers to California sales and use taxes, most of whom have worked from within the Board as auditors, audit supervisors and statewide audit instructors.

In our 30 years of business, we have successfully handled over 20,000 audit issues involving hundreds of millions of dollars of tax assessments by the State. Therefore, we have the proven inside knowledge to be successful.

 

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916.369.1200

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Whether you are considering purchasing an aircraft, have paid sales tax on a recent aircraft purchase, or are contacted by the Board to audit your transaction, you should contact us immediately.

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In Our
Client's Words

“The detailed guidance that you and your staff provided was essential in obtaining the exemption. I was especially impressed by the very timely responses I received to any and all of my questions. I would be pleased to recommend your services without hesitation ...”

– M.M.

“I want to thank Associated Sales Tax Consultants for once again helping us through the process of properly documenting the purchase and operation of our latest aircraft. Having gone through the process on another airplane, we were very familiar with what documentation was required. However, we are glad we decided to engage ASTC once again as there were enough differences between the two airplanes purchased that it would have been easy to make an error on the second plane. As a repeat customer, we highly recommend ASTC not only for those going through the process the first time, but as a regular part of any aircraft purchase in which there are potential sales tax consequences.”

– C.K., General Manager
Kissner & Associates LLC

THE QUALIFYING PERIOD FOR EXEMPTION OR MITIGATION OF TAX IS GENERALLY 6 TO 12 MONTHS

IT MAY NOT BE TOO LATE FOR YOU TO QUALIFY FOR AN EXEMPTION. IF YOU DID PAY TAX, IT MAY BE POSSIBLE TO FILE A CLAIM FOR A REFUND PURSUANT TO SECTION 6901 OF THE TAX CODE.