Property Tax on Airplane in North or South Carolina
Does anybody have any tips on how to legally lower or eliminate the annual property tax burden on an aircraft based in North or South Carolina?
I live in Charlotte (Mecklenburg County), now the highest taxed county in the highest taxed state in the southeast - but base my 1978 Cessna 182RG at Monroe Regional Airport, in neighboring Union County.
Property tax is cheaper there, but now, not by much. Surprisingly, when I called York County (Rock Hill, South Carolina) just over the state line, their property tax rate is higher.
I have read several forums and online articles on property tax, sales tax, and other taxes. Some say you can create an S-corp or LLC in Delaware and register the airplane with it. By my understanding is that this is not legal, unless you have an office in Delaware and intend to base the aircraft there.
Re: Property Tax on Airplane in North or South Carolina
I have had most of my clients form a delaware registered LLC. In transactions where attorneys were involved on my side and the seller's side, they were very careful about it: It was a Bell 407 Helicopter just out of pre-buy in PHL. The attornies had the seller's pilot fly into a Delaware airport, report that he had landed, he purchased fuel, we closed the sale while he was on the ground. When The closing was finished, the attornies called the pilot, instructed him to hand the keys and temp registration to my client's pilot (Buyer), and off they went. I think delaware requires that the aircraft land ther and buy fuel once a year. They haven't done it and they are within the law somehow.
In SC/NC there appears to be an individual in a certain county who sees free money and he is sending letters of inquiry about aircraft registered at and address in SC but based in TX. I have been waiting for this for 10 years and it is finally happening - at least they are trying to collect something.
My advice, call a good CPA and Aviation Lawyer. I use John Adams Hodge Atty. at Haynesworth, Sinkler & Boyd in Columbia.
Re: Property Tax on Airplane in North or South Carolina
You can beat the tax man by forming a LLC in Alabama. You need a Al. Address ie the law office... Call Dennis Odem's law office in Florance,Al. (256) 767-0096. He will advise you on this matter. Paul
