Expert: Jeff Davis - 2/27/2010

Question
is that true...some branch of govt. charges property taxes on a private luxury jet? thats outrageous! the govt. doesnt own someones personal private jet or have dominion over it like a piece of land so how is this justified? if someone paid $40,000,000 for a high end plane the taxes might theoretically be someything like half a milion...per year??????

Answer
I'm not really a tax expert, but I'll tell you what I know.  In the US, most municipalities assess a property tax on all property owned, which includes real estate, automobiles, boats, and aircraft.  Theoretically it includes the clothes on your back, your pocket knife, the food in your refrigerator, etc., but most municipalities consider such items to be included in the value of your home.  I'm not aware of any exclusion for higher-value aircraft, but my guess would be that most people in that income bracket are able to find ways to reduce or eliminate that liability, such as, by putting ownership of the aircraft in a corporation based in a location with a low tax rate.  I'm speculating here, I'm a long way from having any first-hand experience with that type of tax problem.  I just pay the tax on my four-cylinder bucket of bolts, I don't like it but I don't like any of the other taxes I pay either!

I have no knowledge at all of Canada's tax structure, sorry I can't help you with that issue.  Check the profiles of the other experts on this web site, I'm thinking there might be one or two who live in Canada.