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.