Tag: aircraft repair

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

Posted by Ari Good, JD LLM on

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

Posted by Ari Good, JD LLM on
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.