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TIP #98(A)1-05
DATE ISSUED: 06/12/98

Beginning May 15, 1998, The Maintenance, Repair, Sale, and Lease of Certain Aircraft, Parts and Equipment are Exempt.

MAINTENANCE OR REPAIR OF AIRCRAFT

Since 1994, the amount charged customers for labor associated with the maintenance or repair of an aircraft with a maximum certified takeoff weight of more than 20,000 pounds has been exempt from sales and use tax.  This year the Legislature changed this exemption to include any:

  • fixed wing aircraft with a maximum certified takeoff weight of more than 15,000 pounds; and,
  • rotary wing aircraft (e.g., helicopters) with a maximum certified takeoff weight of more than 10,000 pounds.

EQUIPMENT USED IN AIRCRAFT REPAIR OR MAINTENANCE

A new exemption from sales and use tax applies to the sale of equipment used to maintain or repair fixed wing aircraft and rotary wing aircraft when the equipment:

  • includes replacement engines, parts, and/or equipment used to maintain or repair the aircraft; and,
  • 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; and,
  • is installed on aircraft maintained or repaired in Florida.

FIXED WING AIRCRAFT SALES OR LEASES

A new exemption from sales and use tax applies to 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 Federal Aviation Administration regulations (Title 14, chapter I, part 121 or 129, Code of Federal Regulations).

The taxable status of aircraft leased by qualifying common carriers prior to May 15, 1998 is based on the character of the lease as follows:

Operating Lease:  If the lease contract requires periodic lease payments, any lease payment contractually-required to be paid on or after May 15, 1998 is exempt from Florida's sales and use tax;

Capital or Lease Purchase Lease:  Lease payments arising from a capital or lease purchase lease executed before May 15, 1998 are subject to sales tax.


References:
Ch. 98-60, L.O.F.
Rule 12A-1.071(1), F.A.C.

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