Sales and Use Tax on Aircraft Owners and Purchasers
What you Need to Know
If you are planning to purchase an aircraft in
Florida or bring one into the state, the Florida
Department of Revenue (DOR) reminds you that tax
compliance is an important aspect of aircraft ownership.
Tax dollars help fund airport construction, runway
improvements, and vital services for aircraft owners.
How Tax is Applied
Florida's sales and use tax rate is 6 percent. The
tax is imposed when an aircraft is sold and/or delivered
in Florida unless the transaction is specifically
exempted by law. Florida aircraft dealers are required
by law to collect sales tax from you at the time of
sale.
If you live in a county that imposes a discretionary
sales surtax, it will also be collected by your dealer.
The discretionary sales surtax only applies to the first
$5,000 of the purchase price.
All sales of aircraft between individuals are fully
taxable if the sale and/or delivery occurs in Florida.
What Is Use Tax?
Use tax is a component of Florida's sales and use
tax. It is due on any tangible personal property
purchased out of state and brought into Florida within
six months from the date of purchase.
Use tax allows uniform taxation of items such as
aircraft, whether the aircraft is purchased in Florida
or purchased outside Florida but used, hangered,
or stored in the state.
Aircraft purchased and used outside Florida for more
than six months are generally exempt when they are
brought into Florida, provided the following conditions
are met:
-
The owner has owned the aircraft for
more than six months.
-
The owner has used the aircraft in
another state, U.S. territories, or District of
Columbia.
-
The owner did not demonstrate an
intent to use the aircraft in Florida at or before
the time of purchase.
To report use tax due to the state of Florida on the
purchase of an aircraft, the purchaser should complete
an Ownership Declaration and Sales and Use Tax Report
on Aircraft
(Form DR-42A). This form may also be obtained by
calling or writing the Department of Revenue Aircraft
Enforcement Unit (5050 W. Tennessee St., Bldg. G,
Tallahassee, FL 32399-0100 Tel. 850-488-3821 FAX
850-487-0969)
Trade-Ins
If a sale and trade-in are one transaction, a
trade-in allowance will be deducted from the selling
price. Only the net sales price is subject to Florida
tax.
Tax Credits for Purchases
Outside Florida
Florida will allow credit for sales or use taxes
lawfully imposed and paid to anothr state, U.S.
territory, of the District of Columbia, if the aircraft
later becomes subject to Florida tax.
Florida will not allow credit for taxes paid to a
foreign country and will not recognize use in a foreign
country for any period of time. Any aircraft imported
from a foreign country to Florida for use, consumption,
distribution, or storage to be used or consumed in
Florida is subject to Florida's use tax.
Special Exemptions
An aircraft may be purchased exempt from Florida
sales and use tax if it is sold by or through a dealer
registered with DOR to a nonresident purchaser who will
remove the aircraft from this state. Tax will not be due
if the following requirements are met:
-
The aircraft must be removed from
Florida within 10 days from the date of sale; or
-
If the aircraft needs repairs,
additions, or alterations it must immediately be
placed in a registered repair facility and must
leave Florida within 20 days after the work is
complete.
-
Within five days of the sale to a
nonresident purchaser, the dealer must provide a
copy of the invoice, bill of sale or closing
statement and the original removal affidavit.
The purchaser must also meet these requirements:
-
Sign an affidavit attesting that the
purchaser has read the rules and law regarding the
specific exemption claimed and that the aircraft
will be timely removed as specified.
-
Within 10 days of removal, furnish
DOR with written proof that the aircraft was
licensed, registered, titled and hangered outside
Florida.
The exemption does not apply to sales to Florida
residents, corporations where the officers or directors
are residents of Florida, or entitled where a
controlling individual is a Florida resident.
Fixed Wing Aircraft Sales or
Leases
The sale or lease of fixed win aircraft having a
maximum certified takeoff weight of more than 15,000
pounds and used by a "common carrier," as defined in 120
or 129 Federal Aviation Administration regulations, is
exempt from sales and use tax.
Maintenance or Repair of
Aircraft
The amount charged customers for labor associated
with the maintenance or repair of a fixed wing aircraft
with a maximum certified takeoff weight of more than
15,000 pounds, or a rotary wing aircraft (e.g.
helicopters) with a maximum certified takeoff weight of
more than 10,000 pounds, is exempt from sales and use
tax.
Equipment Used in Aircraft
Repair or Maintenance
The sale of equipment used to maintain or repair
fixed wing aircraft and rotary wing aircraft is exempt
from sales and use tax when the equipment:
-
Includes replacement engines, parts,
and/or equipment used to maintain or repair the
aircraft.
-
Is used on an aircraft with a
maximum certified takeoff weight of 15,000 pounds or
a rotary wing aircraft with a maximum certified
takeoff weight of more than 10,300 pounds.
-
Is installed on aircraft maintained
or repaired in Florida.
Registering Your Aircraft
Aircraft operated in this state must be registered
in accordance with the regulations of the Federal
Aviation Administration. Florida does not require a
separate registration of aircraft.
Penalty and Interest
Anyone who purchases an aircraft tax exempt under
the removal provisions of the Florida Statutes must pay
use tax, interest, and a peanlty equal to the tax due if
the aircraft:
-
Is not removed within 10 days of the
date of purchase
-
Is not removed within 20 days after
repairs are completed
-
Returns to Florida within six months
of the date of departure.
The 100 percent penalty is mandatory and cannot be
waived by the DOR.
Any purchaser who issues a fraudulent removal
affidavit for the purpose of evading tax is subject to
payment of the tax due, a mandatory penalty of 200
percent of the tax, a fine of up to $5,000 and
imprisonment of up to five years.
Ramp Checks (Visual
Inspections)
The Department periodically conducts ramp checks.
These are visual inspections at Florida airports and
fixed-base operation facilities to ensure the
appropriate tax has been paid on aircraft in this state.
Aircraft dealer records are subject to DOR inspection
and verification. The Department also has
information-sharing agreements with other state
agencies, other states, and the U.S. government.
