Taxifornia!

[rettofly]

Here's the latest little tax gimmick. Perhaps you've heard of fractional jet ownership. Businessmen purchase either a fraction of a business jet or a specified number of hours per year on a business jet. Now the politicians in California have decided that every time one of these jets takes off or lands at a California airport they are going to have to pay a tax. These taxes range up to over $2000 for a larger business jet. A landing in a Gulfstream 200 will cost you $335. Now if you're a businessman based in California .. and if you are a fractional business aircraft owner .. might this be the proverbial straw? Here would be just one more way you could cut business costs ... move out of California and set up somewhere else.
Got to love the Golden State!

 

[jonjuan]

Been collecting this since 2007. Guess how many other states are now looking at this source of revenue?

 

[glasspilot]

Is it for the jet or the operation? If I own the thing and fly it part 91 do I still pay or is this just a tax on fractionals?

 

[cldsfr79]

Here's the latest little tax gimmick. Perhaps you've heard of fractional jet ownership. Businessmen purchase either a fraction of a business jet or a specified number of hours per year on a business jet. Now the politicians in California have decided that every time one of these jets takes off or lands at a California airport they are going to have to pay a tax. These taxes range up to over $2000 for a larger business jet. A landing in a Gulfstream 200 will cost you $335. Now if you're a businessman based in California .. and if you are a fractional business aircraft owner .. might this be the proverbial straw? Here would be just one more way you could cut business costs ... move out of California and set up somewhere else.
Got to love the Golden State!

This is such a BS tax. What exactly is California taxing? I think if some fractionals and heavy financial hitters want to get together and sue CA, this law might go away. Isn't there some constitutional law about double tax? If you didn't buy the plane in CA, you shouldn't be taxed; if you already own a plane in CA you're already paying property tax on it. You can't just have a "visitors tax".....oh wait maybe you can with this president.

 

[rettofly]

Been collecting this since 2007. Guess how many other states are now looking at this source of revenue?

How have they been collecting this gouge? I've never seen anything on an FBO receipt that I would associate with this.

 

[jonjuan]

You can probably find others. California bassically discovered that fractional purchases were not subject to sales tax (aircraft are delivered in CT or Oregon) and fractional owners didn't pay any tax. CA simply decided to apply a use tax as a function of the purchase price for every take off/landing of each aircraft into CA. The second document below actually shows that the tax isn't on the passengers flying the aircraft, but rather on the "fractional manager." This is being watched very closely by other states as many are near bankrupt and are looking for any way to increase revenues.
Every wonder why the Dodgers, et al keep their planes in Vegas?

http://www.nbaa.org/admin/taxes/state/preamble_v2_6.pdf

http://www.commissions.leg.state.mn.us/afwg/Finalreport.pdf

http://www.boe.ca.gov/pdf/pub79a.pdf

 

[rettofly]

You can probably find others. California bassically discovered that fractional purchases were not subject to sales tax (aircraft are delivered in CT or Oregon) and fractional owners didn't pay any tax. CA simply decided to apply a use tax as a function of the purchase price for every take off/landing of each aircraft into CA. The second document below actually shows that the tax isn't on the passengers flying the aircraft, but rather on the "fractional manager." This is being watched very closely by other states as many are near bankrupt and are looking for any way to increase revenues.
Every wonder why the Dodgers, et al keep their planes in Vegas?

http://www.nbaa.org/admin/taxes/state/preamble_v2_6.pdf

http://www.commissions.leg.state.mn.us/afwg/Finalreport.pdf

http://www.boe.ca.gov/pdf/pub79a.pdf

Sneaky Bastards!

 

[johnsonrod]

After last night's election results in California, if I were a business owner (and fractional share owner), I would keep the beach house and move my business out of California... That place is a disaster. Governor Moonbeam and Barbara Boxer - how are they going to improve the economics of that state????? They had to get union support to win. I would look at moving my business to more tax and regulation friendly Utah, Nevada (even though Reid was reelected) or very business-friendly Texas.

Taxifornia will become more business unfriendly to pay off huge union pension obligations (at the expense of education, infrastructure, etc.). Good luck to everyone living there...

 

[gunfyter]

Jerry Brown not so bad. He proposed a Flat Tax when he ran for president.

If only we had listened to Jerry back then....

With a flat tax the middle class would never vote for all the wasteful spending because they know it all would be reflected in lower take home pay. The problem with taxing only the rich and businesses is -- they can move out of the state.

 

[glasspilot]

Gunfyter, I know you are in love with the idea of a "fair tax". Somebody you respect must have told you it was a good idea and my bet is that somebody was on Fox.

Regardless, here is the problem with your beloved fair tax.

Governments tax the things that they A. Want to make Revenue off of; like earnings, real-estate transactions, capitol gains and the like, and, B. Want to discourage; like alcohol, gambling, and cigarettes.

You go and make a FAIR TAX like you keep going on and on about then all you are going to do is discourage CONSUMPTION!!!! Here's a news flash...our entire economy is fricken BASED on consumption. Go ahead and discourage that. Here's what happens;

Poor people would consume less and as a result, rich people selling to the masses would fail as a result, and

Rich people would consume overseas and as a result rich people now selling to the rich in America then fail as a result (oh...that's us by the way).


I know a lot of people you really like tell you a fair tax is the way to go. I know you love those great people on Fox. But just use your own noggin and you can see the problem with a fair tax.

This country has always had a progressive tax. You have never been in the top brackets and the top brackets are doing JUST FINE without your looking out for them.

The super rich owe a debt to the pot. This great country has made and defended the rules in which they can become super rich. If we set the rules up so the super rich can remain super rich no matter what and they can pass their super wealth down to their heirs then we set up a system where the divide gets bigger and bigger between rich and poor.

I don't know about you, but the great thing about our country is that it is merit based. ANYBODY can go from nothing to great wealth if they work hard and are smart and a pinch of luck never hurts.