FATA "Tries To Set The Record Straight"

Our good friends at the Florida Aviation Trades Association read ANN's recent coverage of controversies surrounding the taxing of a number of new aircraft, even though some of the aircraft taxed may not be owned or operated by Florida residents. They have provided the following insights. We should also note that there has been some extensive discussion on this issue and that we expect additional details on this story in the not too distant future... let's hope its good news. 

FATA Statement

After reading "Should New Aircraft Owners 'Avoid Florida?' ...Welcome To The Sunshine State... NOT," we contacted the Florida Department of Revenue and spoke with Kurt Cook, Tax Audit Supervisor, Aircraft Enforcement Unit, to gather more information on the issue of the FDOR "going after aircraft owners" who return to Florida after purchasing an aircraft and are then asked to pay sales tax in Florida.
 
Mr. Cook stated that the law was written to protect aircraft dealers in Florida. We spoke with him in hypothetical scenarios as confidentiality laws do not allow him to address specific cases that might be pending action. When an aircraft is purchased from a dealer in Florida and the aircraft is not going to be used in Florida, the Dealer prepares and the purchaser signs an affidavit that states just that. If the aircraft comes back to Florida within the 6 months, the aircraft is subject to Florida Use Tax. This 6 month time frame is to make sure the aircraft is actually being used and based where the purchaser said it would be. It can come to Florida for maintenance or repair work if it is taken to a registered repair facility where it can receive work and the owner has a 20 day grace period to leave after the work is done.
 
When questioned if the owners of aircraft purchased in another state can visit Florida before the 6 month rule is met, things might fall into a gray area. We got the impression that every effort is made to be fair to the owner. It is conceivable that the new owner might want to visit Florida on a vacation or business before the 6 month rule has been observed. A hypothetical situation would be that if an aircraft purchased in another state visits Florida within the 6 months and is making trips to and from the Bahamas or some other nearby location, if might be perceived that the aircraft is actually based in Florida. The reason use tax would be collected in this scenario is it to insure that Florida has the revenue to maintain services to residents and visitors, in the form of roads, police etc. All Florida is asking is that everyone abides by the rules and does not try and circumvent the law by registering in another state that has a lower sales tax or a flat fee but use the aircraft in Florida.
 
The 6 month rule has been written so that everyone who is required to pays taxes and, by law Florida is required to collect, does so.  States share information and FDOR might receive information from another state that an aircraft has been registered to an out of state Limited Liability Company or Corporation that is actually owned by Florida residents. If this is the case, Florida will contact the aircraft owner, research ownership and if that aircraft arrives in Florida within 6 months of purchase they are contacted and told they have to pay the sales tax, minus whatever tax might have been paid in another state.
 
The State does require that airport owners provide them with a list of aircraft that are tied down at their airport and will do ramp inspections on occasion. We were told there has not been an escalation in these ramp checks. But if you are abiding by the law, it doesn't matter if more ramp checks are being made. Having said that, we don't know the specifics of recent events that caused the story to be written. If there is ever a question, the best thing to do is contact the Florida Department of Revenue and state your case. Complete necessary paperwork and see if the tax is, in fact, due. 

FMI: www.fata.aero, http://dor.myflorida.com/dor/property/