Category: Florida use tax

Updated Florida Form to Report Sales and Use tax on Aircraft

Florida Introduces New Form to Report Sales and Use Tax on Aircraft

The Florida Department of Revenue (FL DOR) has updated its reporting form on the sale and use of aircraft in Florida. Form DR-15AIR (Sales and Use Tax Return for Aircraft) replaces Form DR-42A (Ownership Declaration and Sales and Use Tax Report on Aircraft). The new form provides explicit guidance on when to report taxes on the sale and use of aircraft in Florida.

When Form DR-15AIR Should be Used.

An individual should report sales and use tax on the purchase of aircraft when they don’t pay Florida’s sales tax to the seller. Form DR-15AIR clarifies the three (3) situations when an individual should instead pay a 6% “use” tax:

1.  An individual purchases an aircraft from a person who is not a registered aircraft dealer and the sale or delivery of the aircraft occurs in Florida;

2.  An individual purchases an aircraft in another state, territory of the United States, or District of Columbia and is brought into Florida within six months of the purchase date; or

3.  An individual purchases an aircraft in a foreign country and is brought into Florida at any time.

This use tax is in addition to any county discretionary sales surtax. The discretionary sales tax applies to the first $5,000 of the purchase price and rates vary by county.

When Sales and Use Tax is Due.

Florida Sales and Use Tax
. Taxes Not Included

Florida’s use tax is technically due when an individual brings an aircraft into Florida for use or storage. The corresponding tax returns and tax payments, however, are due only on the 1st day of the month after the actual month when:

1.  The airaft was purchased in Florida;

2.  The aircraft was delivered to a Florida location; or

3.  The aircraft enters Florida for use or storage.

The tax returns and tax payments are late if coming after the 20th in the month they are due. Late returns and payments are penalized a minimum of $50 or 10% of the amount due, whichever is less. Interest is dues on late payments as well.

Exceptions to Sales and Use Tax.

Exceptions to Florida’s sales and use tax on aircraft continue to apply, including:

1.  The value of an aircraft, boat, mobile home, or motor vehicle an individual trades in reduces the taxable purchase amount. The person accepting the trade in and selling the aircraft must be the same.

2.  An individual removes an aircraft purchased in Florida from the state within 10 days after the date of purchase, or 20 days after completion of repairs or alterations.

3.  A credit for taxes pad in another state, territory of the U.S., or Washington D.C. No credit is available for taxes paid in another country.

4.  An exemption from the tax for non-residents of Florida when their aircraft enter and remain in Florida for 20 days or less during the six-month period after aircraft purchase. This exemption also applies to non-resident owned aircraft that enter Florida for the purposes of flight training, repairs, alterations, refitting, or modification.

Ari Good, JD LLM, a tax, aviation and entertainment lawyer, is the Shareholder of Good Attorneys At Law, P.A. He graduated from the DePaul University College of Law in 1997 and received his LL.M. in Taxation from the University of Florida.

Contact us toll free at (877) 771-1131 or by email to info@goodattorneysatlaw.com.

Sales and Use Tax Exemption Extended For Labor and Equipment Used in the Repair and Maintenance of Certain Aircraft

TIP # 13A01-07
DATE ISSUED: June 10, 2013

Effective May 20, 2013, the sales and use tax exemption for replacement engines, parts, equipment, and labor used in or for the maintenance or repair of rotary wing aircraft (i.e. helicopters) was expanded to include aircraft that exceed 2,000 pounds in maximum certified takeoff weight. Previously, the exemption for labor charges was limited to rotary wing aircraft that exceed 10,000 pounds in maximum certified takeoff weight. The exemption for replacement engines, parts, and equipment was limited to rotary wing aircraft that exceed 10,300 pounds in maximum certified takeoff weight.

Dealers who make tax-exempt charges for replacement engines, parts, equipment, and labor used in or for the maintenance or repair of aircraft over 2,000 pounds are required to document the Federal Aviation Administration registration number (“N-number”) and the maximum certified takeoff weight of the eligible aircraft on the bill of sale, invoice, or other tangible evidence of sale.

Current exemptions for qualified and fixed wing aircraft are unchanged. Replacement engines, parts, equipment, and labor used in or for the maintenance or repair of fixed wing aircraft with a maximum certified takeoff weight of more than 2,000 pounds remain exempt.

References:  Section 4, Chapter 2013-42, Laws of Florida; Sections 212.02(33), 212.08(7)(ee) and (rr), and 212.0801, Florida Statutes (2012)

For More Information

This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.

For forms and other information, visit our Internet site at www.myflorida.com/dor or call Taxpayer Services, 8:00 a.m. to 7:00 p.m., ET, Monday through Friday, excluding holidays, at 800-352-3671.

For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, FL 32399-0112.

Florida Aircraft Repair Maintenance Exemption – Aircraft Tax Lawyer Ari Good

Aircraft Repair and Maintenance Exemption in Florda
It’s good to turn wrenches

Florida Aircraft Repair Maintenance Exemption:  As a friendly reminder to aircraft owners (and snowbirds) nationwide, be advised that Florida wisely modified the “repair and maintenance” exemption this past June to apply to smaller, in fact most, planes, giving greater tax benefits to small aircraft owners having work done on their planes in Florida.

The aircraft repair and maintenance exemption in Florida has since 1994 provided that “repair and maintenance” labor charges are tax-exempt when performed on aircraft with a MTOW of greater than 15,000 pounds (10,000 pounds for helicopters).  Parts and equipment remained taxable “except as otherwise provided” in the exemption statute.  Fortunately for the airplane owner, the statute does indeed otherwise provide that “equipment used in aircraft repair and maintenance” (including replacement engines, parts and equipment used for such activities) is also tax exempt when used for these purposes.

Taxpayer information publication TIP #12A01-04 extends this exemption to planes weighing 2,000 pounds or more. This will obviously apply to most owner-pilot, single piston aircraft using the plane partially or wholly for business.

Also welcome are provisions of the Florida Administrative Code that provide that “labor, parts and materials used and actually incorporated into and becoming a component part of [the aircraft] in rebuilding repairing or reconditioning same for resale or exclusively for leasing are exempt.”  Since many of you have airplanes in leasing company is for purposes of Florida’s “sale for resale” exemption, you may enjoy these provisions and reap considerable Florida sales tax and use tax cost savings.

Please contact me at 877-771-1131 for more information about this exemption, possible pitfalls and how I can make this work for you.