News
Efforts to Repeal Parts of Florida Use Tax Relating to Visiting Aircraft Are Underway
by Scott Burgess, released on Friday, April 3, 2009
Florida Senate bill SB 300 sponsored by Senator Wise (R-5, from Melbourne) was passed by the Senate Commerce Committee. The bill purports to allow non-residents to bring their newly-purchased aircraft to Florida for as many as 21 days during the first 6 months of ownership with no fear of triggering an obligation to pay use tax to the Florida Department of Revenue. Aircraft that are brought into Florida for flight training, repairs, alterations, refitting or modification are also exempt.
Florida House of Representatives bill HB 51, sponsored by Representative Ralph Poppell (R-29, from Vero Beach), was passed by the House Economic Development Policy Committee. The House bill is the companion to the Senate bill, but would also reduce the aircraft sales tax from 6 percent to 3 percent.
The Florida Department of Revenue construes current Florida law to require the owners of aircraft that remain overnight in Florida within the six months following their purchase of the aircraft to pay up to a 6-percent use tax on the monthly lease rate or, in the absence of a lease, the aircraft sales price. The rule is especially burdensome for aircraft registered in states with no or low sales tax on aircraft because the Florida Department of Revenue seeks payment of the difference between home-base state’s sales tax and Florida’s 6-percent tax.
As the bills pass to the next committee, they still face a difficult road to passage, especially since the legislature is loath to be perceived as cutting taxes in the current economic climate. Please support AOPA in its efforts to lobby for passage of the bills, and make certain your elected Florida officials know that the bills are important to you and your business!
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