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The Kansas House of Representatives has overwhelmingly approved legislation that would lift the property tax burden from experimental, amateur-built aircraft in the state. The 116-4 House vote on March 13 sent the bill to the Senate Standing Committee on Assessment and Taxation.
AOPA and the Experimental Aircraft Association have both given strong support to the bill, which would add homebuilt aircraft to the state’s existing property tax exemption for business aircraft and antique aircraft (aircraft more than 30 years old), criteria that apply to much of the general aviation fleet. The current law forces homebuilders to pay a disproportionate share of the tax burden when they assemble new kits.
CA needs this. Any action?
I don't think the bill has made it completely through the system yet but I would think that it's pretty much a done deal.
Some folks are paying $1,000 to $2000 per year to own their homebuilt aircraft.
How does that work in Kansas? Do you need some license plate sticker? How is the amount determined as to how much you have to pay for a homebuild? Just curious, SD has no tax or state registration for a homebuilt aircraft. However in Connecticut, there was a state registration requirement and I had to pay sales tax on all parts and services during the build. Some guys got hit pretty hard on that one, I moved to SD. -- Peter
How personal property taxes are calculated in Kansas:
Example: If the appraised value of your airplane is $50,000
First, Multiply the appraised value by the "assessment %" for your property, airplanes would be in the 30% bracket.
(Different kinds of property have different assessments. Airplanes and boats have much higher assesments then houses for example. For tax purposes there is no difference between homebuilt and certified aircraft.)
appraised value assessment rate assessed value
50,000 x .30 (30%) = $15,000
Second, Multiply the assessed value by your "mill levy"
and then divide by 1,000 to estimate the property tax you owe.
(The "mill levy" is suposed to be calculated each year and is based on the total budget required (state, county, fire, schools, etc.) divided by the total property, within the county, assessed values.)
15,000x (.152937) ** = $2,293.50
**Contact your county clerk to find out what your current mill levy is.
what happened to that legislation in Kansas ? I never heard any more about it.
Copied from the 2016 Kansas Dept of Revenue summery:
There are three property tax exemptions available for aircraft.
Business Aircraft: The exemption for business aircraft was broadened for tax year 2003
forward. To qualify for exemption the aircraft must be used predominately to earn income for
the owner in the conduct of the owner's business or industry. “Predominately” is defined to
mean at least 80% of the total use of the aircraft, or the utilization of the aircraft such that all
costs are deductible for federal income tax purposes. If the owner’s business is the leasing of
aircraft, the lessee’s use of the aircraft is not considered in the determining the
exemption [K.S.A. 79-201k]
Antique Aircraft: To qualify for exemption the aircraft must be 30 years old or older by the
date of manufacture. The aircraft must also be used exclusively for recreational and/or display
purposes. [K.S.A. 79-220]
Amateur-Built Aircraft: Amateur-built aircraft is defined as aircraft, manned or unmanned, that
the major portion of which has been fabricated and assembled by a person or persons who
undertook the construction project solely for their own education or recreation. This bill
applies to all years after December 31, 2013. [Senate Bill 266 amending K.S.A. 79-220]
Thanks for the update. Good news