Monday, August 16, 2010
Higa & Gipson, LLP Featured in Asian American Bar Association Newsletter
The Asian American Bar Association (AABA) featured Higa & Gipson, LLP in the August 2010 newsletter. As a 100% minority-owned firm, we are honored that AABA chose to highlight our boutique firm as an example to other attorneys charting a different course in today's economic climate. The full article can be seen here: http://www.aaba-bay.com/aaba/docs/aaba-0810.pdf.
Monday, July 26, 2010
The FAA's New Aircraft Registration Rule Effects Airworthiness
The following is an excerpt from the Federal Aviation Administration's (FAA)website.
***
WASHINGTON, D.C. – In an effort to create a more accurate aircraft registration database, the Federal Aviation Administration (FAA) is requiring re-registration of all civil aircraft over the next three years and renewal every three years after that.
The rule establishes specific expiration dates over a three-year period for all aircraft registered before Oct. 1, 2010, and requires re-registration of those aircraft according to a specific schedule. All aircraft registration certificates issued on or after Oct. 1, 2010 will be good for three years with the expiration date clearly shown.
“These improvements will give us more up-to-date registration data and better information about the state of the aviation industry,” said FAA Administrator Randy Babbitt.
Current regulations require owners to report the sale of an aircraft, the scrapping or destruction of an aircraft, or a change in mailing address, but many owners have not complied with those requirements.
Re-registration of all U.S. civil aircraft by Dec. 31, 2013 will enhance the database with current data derived from recent contact with aircraft owners. The new regulations also will ensure that aircraft owners give the FAA fresh information at least once every three years when they renew their registration. The FAA will cancel the N-numbers of aircraft that are not re-registered or renewed.
***
Federal Aviation Regulations are codified in Code of Federal Regulations. 14 CFR § 21.181 governs airworthiness certificates. The regulation states in pertinent part,
(a) Unless sooner surrendered, suspended, revoked, or a termination date is otherwise established by the Administrator, airworthiness certificates are effective as follows: (1) Standard airworthiness certificates, special airworthiness certificates primary category, and airworthiness certificates issued for restricted or limited category aircraft are effective as long as the maintenance, preventive maintenance, and alterations are performed in accordance with Parts 43 and 91 of this chapter and the aircraft are registered in the United States.
14 CFR 21.181(a) (WEST 2010). As a result of the language of the statute, an aircraft that does not have a valid registration certificate does not meet the definition of an airworthy craft and should not be operated until brought into compliance with the code.
The Executive Summary of the Final Rule Making, on more than one occasion, makes it clear that as a prerequisite for a U.S. aircraft to operate in compliance with the regulations, the aircraft must have both an airworthiness certificate and a valid registration certificate. Therefore, an aircraft that does not have both (i) a valid airworthiness certificate; and (ii) a valid registration, does not comply with the FARs and may not be operated until such time as the aircraft can comply with the changes to the regulation.
If you have questions about the new rule or need assistance with compliance, then contact Ronnie Gipson, head of the firm's Aviation Law practice. Mr. Gipson can be reached at (415) 655-6822 or via e-mail at gipson@higagipsonllp.com.
***
WASHINGTON, D.C. – In an effort to create a more accurate aircraft registration database, the Federal Aviation Administration (FAA) is requiring re-registration of all civil aircraft over the next three years and renewal every three years after that.
The rule establishes specific expiration dates over a three-year period for all aircraft registered before Oct. 1, 2010, and requires re-registration of those aircraft according to a specific schedule. All aircraft registration certificates issued on or after Oct. 1, 2010 will be good for three years with the expiration date clearly shown.
“These improvements will give us more up-to-date registration data and better information about the state of the aviation industry,” said FAA Administrator Randy Babbitt.
Current regulations require owners to report the sale of an aircraft, the scrapping or destruction of an aircraft, or a change in mailing address, but many owners have not complied with those requirements.
Re-registration of all U.S. civil aircraft by Dec. 31, 2013 will enhance the database with current data derived from recent contact with aircraft owners. The new regulations also will ensure that aircraft owners give the FAA fresh information at least once every three years when they renew their registration. The FAA will cancel the N-numbers of aircraft that are not re-registered or renewed.
***
Federal Aviation Regulations are codified in Code of Federal Regulations. 14 CFR § 21.181 governs airworthiness certificates. The regulation states in pertinent part,
(a) Unless sooner surrendered, suspended, revoked, or a termination date is otherwise established by the Administrator, airworthiness certificates are effective as follows: (1) Standard airworthiness certificates, special airworthiness certificates primary category, and airworthiness certificates issued for restricted or limited category aircraft are effective as long as the maintenance, preventive maintenance, and alterations are performed in accordance with Parts 43 and 91 of this chapter and the aircraft are registered in the United States.
14 CFR 21.181(a) (WEST 2010). As a result of the language of the statute, an aircraft that does not have a valid registration certificate does not meet the definition of an airworthy craft and should not be operated until brought into compliance with the code.
The Executive Summary of the Final Rule Making, on more than one occasion, makes it clear that as a prerequisite for a U.S. aircraft to operate in compliance with the regulations, the aircraft must have both an airworthiness certificate and a valid registration certificate. Therefore, an aircraft that does not have both (i) a valid airworthiness certificate; and (ii) a valid registration, does not comply with the FARs and may not be operated until such time as the aircraft can comply with the changes to the regulation.
If you have questions about the new rule or need assistance with compliance, then contact Ronnie Gipson, head of the firm's Aviation Law practice. Mr. Gipson can be reached at (415) 655-6822 or via e-mail at gipson@higagipsonllp.com.
Friday, June 25, 2010
Florida Repeals Use-Tax for New Aircraft Visiting State
Florida imposes a 6% use tax on the total value of recently purchased aircraft visiting from out-of-state for any purpose. In Florida, out-of-state aircraft owners are subject to the use tax for visiting the state within six months of purchasing an aircraft, even if the owners already paid sales tax in their own state. (Note: California levies a sales tax on aircraft purchased in the state. California imposes an use-tax for aircraft purchased outside the state and domiciled within the state.)
Governor Charlie Crist signed Florida House Bill 173 into law on May 27, 2010. As a result, on July 1, 2010, a permanent exemption for the 6% use tax for visiting out-of-state aircraft goes into effect. The possibility of incurring a 6% use tax for visiting Florida in a recently purchased aircraft deterred pilots from California and all over the nation, from visiting Florida over the past few years. Now out-of-state aircraft owners will be able to visit Florida with newly purchased aircraft for up to 21 days for any purpose and remain exempt from the use tax. Alternatively, aircraft owners with newly purchased aircraft may visit Florida for an unlimited amount of time within six months of purchase, remaining exempt from the use tax, for the purpose of flight training, repairs, retrofitting, or modifications. The Aircraft Owners and Pilots' Association (AOPA) contends, "Allowing more aircraft to visit the state will facilitate growth in the aviation industry and improve aviation services at many local airports."
For more information on how the Florida Use-Tax exemption effects your flying, then contact Ronnie Gipson with Higa & Gipson, LLP at (415) 655-6820 or via e-mail at gipson@higagipsonllp.com.
Governor Charlie Crist signed Florida House Bill 173 into law on May 27, 2010. As a result, on July 1, 2010, a permanent exemption for the 6% use tax for visiting out-of-state aircraft goes into effect. The possibility of incurring a 6% use tax for visiting Florida in a recently purchased aircraft deterred pilots from California and all over the nation, from visiting Florida over the past few years. Now out-of-state aircraft owners will be able to visit Florida with newly purchased aircraft for up to 21 days for any purpose and remain exempt from the use tax. Alternatively, aircraft owners with newly purchased aircraft may visit Florida for an unlimited amount of time within six months of purchase, remaining exempt from the use tax, for the purpose of flight training, repairs, retrofitting, or modifications. The Aircraft Owners and Pilots' Association (AOPA) contends, "Allowing more aircraft to visit the state will facilitate growth in the aviation industry and improve aviation services at many local airports."
For more information on how the Florida Use-Tax exemption effects your flying, then contact Ronnie Gipson with Higa & Gipson, LLP at (415) 655-6820 or via e-mail at gipson@higagipsonllp.com.
Wednesday, March 17, 2010
Employer Tax Breaks for New Employees To Stimulate Economy
On February 24, 2010, the U.S. Senate passed its version of the Hiring Incentives to Restore Employment Act (HIRE), also known as the Jobs bill. On March 4, 2010, the U.S. House of Representatives passed the Jobs bill with an amendment. The Jobs bill now goes back to the Senate for a vote on the amended version before being passed on to the President for signature. The President is expected to sign the bill into law upon passage by the Senate.
The Jobs bill is a plan to stimulate the economy through the creation of jobs by providing tax breaks to companies who hire the unemployed. The Jobs bill is designed to work as described as follows. HIRE will exempt an employer from paying the employer’s portion of the Social Security tax of an employee’s wage for the remainder of the year, when the company hires a previously unemployed worker. The exemption applies, retroactively, to individuals hired after February 3, 2010, through December 31, 2010.
The 6.2% portion of the Social Security tax would be exempt for any qualified individual hired after February 3, 2010, and before January 1, 2011, for wages paid in 2010 up to the Social Security ceiling of $106,800. Qualified employers may begin claiming this exemption on the second quarter 2010 Form 941.
A business will qualify for the tax credit and exemption if the new employee meets the following requirements:
o The new employee begins employment with a qualified employer after February 3, 2010, but before January 1, 2011;
o The new employee has not been employed for more than 40 hours in the previous 60 days; and
o The new employee is not hired to replace another employee, unless the former employee was separated from employment for cause or voluntarily.
It is important to note that the Social Security tax exemption is not an option if the employer selects the Working Opportunity Tax Credit (WOTC).
If you have questions about how you can best position your company to take advantage of the Jobs bill or if you have employment issues pertaining to your business, then contact Ronnie Gipson at (415) 655-6820 or through the firm’s website at www.higagipsonllp.com.
The Jobs bill is a plan to stimulate the economy through the creation of jobs by providing tax breaks to companies who hire the unemployed. The Jobs bill is designed to work as described as follows. HIRE will exempt an employer from paying the employer’s portion of the Social Security tax of an employee’s wage for the remainder of the year, when the company hires a previously unemployed worker. The exemption applies, retroactively, to individuals hired after February 3, 2010, through December 31, 2010.
The 6.2% portion of the Social Security tax would be exempt for any qualified individual hired after February 3, 2010, and before January 1, 2011, for wages paid in 2010 up to the Social Security ceiling of $106,800. Qualified employers may begin claiming this exemption on the second quarter 2010 Form 941.
A business will qualify for the tax credit and exemption if the new employee meets the following requirements:
o The new employee begins employment with a qualified employer after February 3, 2010, but before January 1, 2011;
o The new employee has not been employed for more than 40 hours in the previous 60 days; and
o The new employee is not hired to replace another employee, unless the former employee was separated from employment for cause or voluntarily.
It is important to note that the Social Security tax exemption is not an option if the employer selects the Working Opportunity Tax Credit (WOTC).
If you have questions about how you can best position your company to take advantage of the Jobs bill or if you have employment issues pertaining to your business, then contact Ronnie Gipson at (415) 655-6820 or through the firm’s website at www.higagipsonllp.com.
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