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 involce, 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 fradulent 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.
