Anyone else in IL get an audit for sales tax on their ELSA?

[leithalweapon]

I converted my ultralight to ELSA in 2007. The ultralight was acquired with an even trade. No money exchanged. Also the ultralight had no paperwork to show ownership. In January I got a tax audit in the mail from the Illinois Department Of Revenue. They want me to provide a bill of sale so that I can pay a 'sales and use tax' on the aircraft. I traded for the aircraft back in 2002 and never got a bill of sale because the plane had no registration at that time. Now it's registered as an ELSA and they want their tax.

Called the EAA and they were surprised to hear this until I told them I lived in Illinois. Then they proceeded to tell me that, in their experience, Illinois is very aggressive in pursuing These matters.

The ultralight is a one of a kind. Not built from a kit and I do not have the plans. Only a builder log and pictures.

I am starting to think I should have done what many other heavy ultralight owners did. Not converted it to an ELSA!

[3Dreaming]

Have you talked to IDR yet? Give them a call to see what you need to do to get things straightened out. Maybe a notarized letter from the former owner as to when you traded. I've found the guy who handles this for the state to be OK to work with. Tom

[bryancobb]

If I remember correctly, from the contents of the EAA's "ULTRALIGHT TO ELSA" registration kit contained a checklist of items that the FAA needed to issue a N-Number and an Airworthiness Certificate.

One of the items on the list was a Bill of Sale, Proof of Ownership, or Certificate of Origin, or something to that effect.

If you EVER provided the FAA with ANY sort of Proof of Ownership/Bill of Sale Type document with an AMOUNT listed, and IF that aircraft has an N-Number...

YOU WILL GET A STATE SALES TAX BILL BASED ON THE AMOUNT SHOWN ON THE FAA BILL OF SALE OR PROOF OF OWNERSHIP THAT YOU PROVIDED TO THEM, OR BASED ON THE LOCAL TAX ASSESSOR'S TABLE OF VALUES IF THAT TYPE AIRCRAFT IS LISTED.

Once, I bought a Brantly helicopter. The FAA Bill of Sale had a $25,000 amount on it. The County Tax Assessor's Table of Values listed a Brantly at $35,000. I got taxed at 35. I appealed. They lowered it to 25.