Florida extends aircraft maintenance tax exemptions

Florida legislators wisely passed a law that expanded the pre-existing tax exemption for aircraft maintenance costs, including equipment used in repairs. This is great news for general aviation aircraft owners and business aircraft operators. The law was initially passed by the Florida House of Representatives in February 2012, and has been in effect since July 2012.

Under the old Florida law, the maintenance tax exemption was applicable to aircraft weighing more than 15,000 pounds (rotary aircraft weighing over 10,000 pounds). This meant that most light-weight, corporate, and private aircraft were subject to in-state maintenance and repair tax, and small aircraft owners took their business elsewhere accordingly. The new law reduces the weight limit to 2,000 pounds, considerably broadening the types of aircraft that fit in under the state tax exemption.

This revision is a home run for the Florida general aviation community in a sluggish economy. With this new tax exemption there are rising hopes that Florida can return to its leadership role in attracting general aviation contractors and related small businesses. Florida is now one of 32 states to have passed significant aviation-based tax exemptions in the last few years. Both lawmakers, and local business leaders, expect an immediate boost in employment, maintenance traffic, and production.

Rep. Stephen L. Precourt, chairman of the Finance and Tax Committee, introduced the new tax exemption law as a bill, and moved it directly to the House late last year. However, the bill was initially created based on provisions provided by two separate bills, introduced by House Rep. Steve Crisafulli, and Senator Mike Bennett. Their goal was to expand sales, use tax, and maintenance tax exemptions to encourage economic growth in the industry. The new tax exemption bill, formally known as HB7087, was heavily supported by local organizations such as the Florida Aviation Trade Association (FATA), the Florida Airports Council (FAC), and the Aircraft Owners and Pilots Association (AOPA).