Florida imposes a 6% use tax on the total value of recently purchased aircraft visiting from out-of-state for any purpose. In Florida, out-of-state aircraft owners are subject to the use tax for visiting the state within six months of purchasing an aircraft, even if the owners already paid sales tax in their own state. (Note: California levies a sales tax on aircraft purchased in the state. California imposes an use-tax for aircraft purchased outside the state and domiciled within the state.)
Governor Charlie Crist signed Florida House Bill 173 into law on May 27, 2010. As a result, on July 1, 2010, a permanent exemption for the 6% use tax for visiting out-of-state aircraft goes into effect. The possibility of incurring a 6% use tax for visiting Florida in a recently purchased aircraft deterred pilots from California and all over the nation, from visiting Florida over the past few years. Now out-of-state aircraft owners will be able to visit Florida with newly purchased aircraft for up to 21 days for any purpose and remain exempt from the use tax. Alternatively, aircraft owners with newly purchased aircraft may visit Florida for an unlimited amount of time within six months of purchase, remaining exempt from the use tax, for the purpose of flight training, repairs, retrofitting, or modifications. The Aircraft Owners and Pilots' Association (AOPA) contends, "Allowing more aircraft to visit the state will facilitate growth in the aviation industry and improve aviation services at many local airports."
For more information on how the Florida Use-Tax exemption effects your flying, then contact Ronnie Gipson with Higa & Gipson, LLP at (415) 655-6820 or via e-mail at gipson@higagipsonllp.com.
