The Quick Trip
LOCATION: Southern US; Nearly 200,000 residents; Tourist Destination
MEDIAN HOME VALUE: $328,500
TAX AUDITOR: Elected
STR CLIENT SINCE: 2022
TAX REVENUE RECOVERED: $208,000
STR SERVICES: Discovery
STR Helped This County Recover $208,000+ from One Aircraft
While the elected tax official was out of the office on sick leave, a new person had to learn how to manage aircraft taxation — fast. Even with Specialized Tax Recovery as a current, vetted partner, their approach was understandably cautious. We had to prove ourselves again. And we did.
The Law.
In this southern state, aircraft owned on January 1 of each year are subject to ad valorem property taxation by the county in which they establish situs or show habitual use. The tax rate varies by county, and each local tax office is responsible for monitoring and taxing their aircraft. The county tax offices are tasked with ensuring compliance across various aircraft ownership types including: non-residents, personal or business travel, commercial operations, air transportation, or flight instruction.
The Challenges.
Numerous aircraft operating in this state choose to register their aircraft in another location in hopes of remaining undetected and untaxed. So far, it’s worked.
This office hired STR because they were struggling with these aircraft. On top of aircraft owners looking to avoid their county tax liability, the tax official had to take a medical leave of absence, thrusting a replacement into a difficult position. Aircraft in the past had been an issue, and the office needed better data.
Issuing a tax bill, especially a large one that’s overdue, can be a daunting task. Plus, the tax office wants to avoid the headaches of a lengthy appeal process. STR was brought in to assure the new leadership they could completely trust our process to achieve uniform and accurate taxation.
STR Solutions.
As an extension of their tax assessment capabilities, everyone at STR viewed the relationship as a partnership. We understand the complexities of aircraft taxation. In this case, we took our time helping our new colleague get to know our systems and processes. The tax office learned to see our data was accurate and efficient, and it helped them make informed decisions.
Through our proprietary discovery process, we found an aircraft they needed to tax. It was registered out of state in Delaware in an attempt to avoid taxation, yet situs was clearly in their jurisdiction. We also knew it had skirted its tax responsibility for 4 years.
The Result.
Because we gained the trust of our new colleagues, they issued the tax bill. No questions, no headaches. Not only did the county recover the approximately $208,000 owed to them, but they’ll also receive their annual taxes on this aircraft moving forward.
This is money rightfully owed to the community, to the schools. We got it back, and there’s more coming. This is just one example of many that helped this county recover omitted accounts.
Get to Know the Aircraft Guys
We did it for them, and we can do it for you. Let’s talk about how we can enrich your compliance rate and complement your assessment and collection strategy for all aircraft.
