Sales and Use Tax on Aircraft Owners and Purchasers

What aircraft owners and purchasers need to know about using and purchasing aircraft in Florida.

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 other vital services for aircraft owners.

What is Taxable?

All aircraft sold and/or delivered in this state are subject to Florida's 6 percent sales tax, unless the transaction is specifically exempted by law. Florida aircraft dealers and brokers are required to collect sales tax from the purchaser at the time of sale or delivery.

If the aircraft is delivered into a county that imposes a discretionary sales surtax, then dealers must also collect this tax. Discretionary sales surtax applies only to the first $5,000 of the aircraft 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 law. It is due on purchases made out of state and brought into Florida within 6 months of the purchase date.

The "use" component of sales and use tax provides uniform taxation of items such as aircraft, which may be purchased outside Florida, but used, hangared, or stored in the state.

Aircraft purchased and used outside Florida for more than 6 months are generally exempt when brought into Florida, if both of the following conditions are met:

• The owner has owned the aircraft for more than 6 months.
• The owner has used the aircraft in another state or states, U.S. territory, or District of Columbia 6 months or longer prior to bringing the aircraft to Florida.

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). See below for information on obtaining this and other forms.

Trade-Ins

If a sale and trade-in are included in a single transaction, the trade-in allowance may be deducted from the selling price. Only the net sales price is subject to Florida sales tax and any applicable discretionary sales surtax.

Tax Credits for Purchases Outside Florida

Florida will allow credit for sales or use taxes lawfully imposed and paid to another state, U.S. territory, or 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, distribution, or storage (with the intent to be used in Florida) is subject to Florida's use tax.

Specific Exemptions

An aircraft may be purchased tax-exempt if it is sold by or through a registered dealer to a nonresident purchaser who will remove the aircraft from this state. Within 5 days of the date of sale, the dealer must provide DOR with a copy of the invoice, bill of sale, and/or closing statement; and the original, signed, removal affidavit.

Tax will not be due if either of the following requirements are met:

• The aircraft must be removed from Florida within 10 days from the date of sale.
• If the aircraft needs repairs, additions, or alterations, it must immediately be placed in a repair facility registered with DOR and removed from Florida within 20 days from the date the work is complete.

The purchaser must also meet these requirements:

• Sign an affidavit attesting that the purchaser has read the applicable rules and law regarding the exemption claimed and will timely remove the aircraft as required.
• Within 10 days of removal, furnish DOR with proof that the aircraft left Florida (submit copies of receipts for fuel charges, tie-down charges, or repair or hangar charges from outside Florida).
• Within 30 days of departure, furnish DOR with written proof that the aircraft was licensed, registered, titled, and hangared outside Florida.

This exemption does not apply to sales to Florida residents, corporations whose officers or directors are Florida residents, or other entities whose controlling individual is a Florida resident.

Fixed Wing Aircraft Sales or Leases

The sale or lease of fixed wing aircraft having a maximum certified takeoff weight of more than 15,000 pounds and used by a "common carrier," as defined in Section 121 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 state 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 penalty 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 6 months of the date of departure.

The 100 percent penalty is mandatory and cannot be waived by DOR.

Any purchaser who issues a fraudulent removal affidavit for the purpose of evading tax is subject to payment of the tax due, interest, a mandatory penalty of 200 percent of the tax, a fine of up to $5,000, and imprisonment up to 5 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.

Reference Material

Tax Laws

Call Taxpayer Services to request a copy of Rule 12A-1.007, Florida Administrative Code, Aircraft, Boats, Mobile Homes, and Motor Vehicles; Rule 12A-1.071, F.A.C., Rentals, Leases, or License to Use Tangible Personal Property; and Rule 12A-15, F.A.C., Discretionary Sales Surtax. Tax laws are also available in the Florida Tax Law Library.

Brochures

The following brochures are available from your local DOR service center, the DOR Distribution Center, or Taxpayer Services:

• Florida's Sales and Use Tax
• Discretionary Sales Surtax
• Aircraft - Dealers and Brokers
• Tangible Personal Property Rentals

For Information and Forms

Aircraft Enforcement Unit
Florida Department Of Revenue
PO Box 6417
Tallahassee Fl 32314-6417
Telephone: 850-487-3273
Fax: 850-487-0969

Information and forms are available on our Internet site at www.myflorida.com/dor.

Persons with hearing or speech impairments may call the TDD line at 800-367-8331 or 850-922-1115.

• Order multiple copies of forms from our Internet site at www.myflorida.com/dor/forms or
• Fax form requests to the DOR Distribution Center at 850-922-2208 or
• Mail form requests to:
  

  Distribution Center
  Florida Department of Revenue
  168A Blountstown Hwy
  Tallahassee FL 32304-2702