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I just received a registered letter from the State of New Jersey (yes they can write). They are requesting all kinds of forms and the reason I have not paid State Sales Tax on the c150 I purchased.
Folks around here say "Don't pay. It is a one time purchase of personnal property".

Has anyone had any experience with this?

I don't have specific experience with New Jersey, but the "don't pay" advice is rarely good when it comes to taxes.

First off, I would do some research on-line to see what constitutes a 'tax-worthy' purchase in New Jersey - some things may be exempt.

For example, here in Connecticut we have property tax on our vehicles. Except airplanes - for those we pay a flat rate depending upon the gross weight of the plane, not it's assessed value. To escape this tax on their cars, some people register them out-of-state. A vacation home in Vermont is a favorite ploy. As such, Connecticut will scan the motor-vehicle records in VT looking for CT mailing addresses (as opposed to a VT garage address). When I registered my dirt-bike in Vermont (required to ride on their trails), I got a call from the Connecticut tax-guy. Once I explained that it was an off-road vehicle (and I had since sold it), case was closed, no tax paid.

Another example of a sales-tax "oops!" is when a home-builder finishes completing their plane and registers it for the first time. That's when they're assessed a sales tax for the purchase of the kit... along with fines for the years a-building without paying. Seems the state expects people to pay a "Use Tax" (equivalent to a sales tax) on the purchase of the kit at the time the kit is purchased. As you can imagine, delays can add up.

You might get good results by simply calling the NJ state office and asking what taxes (if any) are due on a private airplane sale. You should be able to get some answers without having to reveal who you are. Note - get them in writing, as people's interpretation can be wrong. A pamphlet or web-site would be your best bet.

Chris,
Try these people njviation.org [njaviation.org] I bet they would know

Thanks Ron. I didn't know that they existed.

There was a bill presented in July 2005 and passed in October 2005, dis-allowing aircraft from the list of "Casual Sales" that are exempt from tax...so, I pay again.

Usually if you've paid sales tax to another state you don't have to pay again ...

-Henri

Bought my plane in Mass.. Paid 5% Mass. sales tax.

Registered it in RI because I was keeping it there and had to
pay another 2% sales tax because RI has a 7% tax.

That has all gone away now because both states got rid of
sales tax on aviation goods and services.

Got rid of!! when was that?

RI was a couple of years ago and Mass was about 5 or so years ago. Too many owners going over the border to NH
where
they have no sales tax.

Can't remember the exact dates.

In Oklahoma you pay an initial sales tax and then a yearly registration tax. The aircraft sales tax was about 3% which sucks some money earmarked for other things like an EGT but the registration for my bird is only $10.00 a year.

You can't hide from the tax-man so it's better to get it over with sooner than later (late payment penalties).