Just Bought A Plane? STAY OUT OF FLORIDA !

On Tue, 01 Apr 2008 12:28:45 -0500, Jim Logajan wrote:

http://www.fata.aero/news.asp?news_id=88&display=yes

So basically he wasn't charged any sales or use tax. That is not what the
A.N.N. story claimed. The Cirrus owner simply assumed that the advice he
heard over the phone was valid and canceled his plans.

I received this from Sun n' fun which seemingly contradicts the report
by the Cirrus owner (link above).

March 21, 2008

Sun ¡¦n Fun has recently been made aware of media reports of a ¡§Florida
Tax Ripoff¡¨ and the impact this may have on the Sun ¡¦n Fun Fly-In, which
opens Tuesday, April 8, and runs through Sunday, April 13.

The reports erroneously describe ¡§non (Florida)-resident pilots who have
been caught in the FL tax trap¡¨ and who have been ¡§targeted for ¡¥use
tax¡¦ by agents of the state¡¦s Department of Revenue . . . despite the
fact that the targeted aircraft were not owned or operated by state
residents.¡¨

This is inaccurate and misleading. Sun ¡¦n Fun contacted the Florida
Department of Revenue and received a definition of the regulation in
question. Language within the Florida Tax Code quoted in the media
reports clearly indicates this tax affects ONLY those owners who have:

Purchased their airplane in another state (outside of Florida) within
the past six months but who have the aircraft titled, registered or
licensed in Florida and have not paid Florida tax on that airplane.

This DOES NOT impact Sun ¡¦n Fun Exhibitors who bring aircraft to
Lakeland.

It DOES NOT impact aircraft owners whose airplane is more than six
months old, which comprises a vast majority of aircraft being flown to
Sun ¡¦n Fun.
It DOES NOT impact aircraft owners who have owned their airplane more
than six months and have it titled, registered or licensed in another
state.
It DOES NOT impact aircraft owners who have purchased an airplane within
the past six months and have it titled, registered or licensed in
another state (other than Florida).
And it DOES NOT impact aircraft owners who have purchased their
airplanes within the past six months in Florida and have paid the
appropriate tax.
The bottom line is that the Florida Tax Code in question has the
capacity to impact a minute number ¡V if any ¡V of the aircraft flying to
Lakeland for Sun ¡¦n Fun. More importantly, the Florida Department of
Revenue has assured Sun ¡¥n Fun that there will not be any agents
assigned to the Fly-In event conducting ¡§ramp checks¡¨ and that
out-of-state aircraft flying to Florida for Sun 'n Fun are not subject
to the "sales/use" tax as long as the aircraft owner is not trying to
avoid taxes owed because he/she is a Florida resident or operates a
business in Florida and uses the aircraft for that purpose.

We look forward to seeing you at Sun ¡¦n Fun!

John Burton
President
Sun ¡¥n Fun

On Tue, 01 Apr 2008 12:28:45 -0500, Jim Logajan wrote:

http://www.fata.aero/news.asp?news_id=88&display=yes

So basically he wasn't charged any sales or use tax. That is not what the
A.N.N. story claimed. The Cirrus owner simply assumed that the advice he
heard over the phone was valid and canceled his plans.

This Cirrus owner and the Cirrus owner in the OP are not necessarily the
same person/plane.

Here's FDOT's position paper on the matter.

http://dor.myflorida.com/dor/taxes/s...aft_owner.html

I don't think there is any argument whatsoever here. Florida sees the
aircraft entering Florida as "use" of Florida (air) facilities, not a
"sales" tax on the transaction. They clearly state they do ramp checks.

Does this mean Sun n Fun attendees are liable for use taxation? Sure
does. Does this mean that there is a likelihood they will be taxed? I
don't see the likelihood at all.

WJRFlyBoy wrote:
On Tue, 01 Apr 2008 12:28:45 -0500, Jim Logajan wrote:

http://www.fata.aero/news.asp?news_id=88&display=yes
So basically he wasn't charged any sales or use tax. That is not what the
A.N.N. story claimed. The Cirrus owner simply assumed that the advice he
heard over the phone was valid and canceled his plans.

This Cirrus owner and the Cirrus owner in the OP are not necessarily the
same person/plane.

Here's FDOT's position paper on the matter.

http://dor.myflorida.com/dor/taxes/s...aft_owner.html

I don't think there is any argument whatsoever here. Florida sees the
aircraft entering Florida as "use" of Florida (air) facilities, not a
"sales" tax on the transaction. They clearly state they do ramp checks.

Does this mean Sun n Fun attendees are liable for use taxation? Sure
does. Does this mean that there is a likelihood they will be taxed? I
don't see the likelihood at all.


http://www.aopa.org/advocacy/article.../080328fl.html

"I don't think there is any argument whatsoever here. Florida sees the
aircraft entering Florida as "use" of Florida (air) facilities, not a
"sales" tax on the transaction."

This is not at all correct. "Use tax" has a specific legal definition, which
doesn't refer to the "use" of a specific something.

In the context being discussed, the use tax is the amount of sales tax that
would have been collected on the transaction if it had occurred in Florida,
minus the amount of the sales tax (if any) collected by another state.

This same type of tax is frequently collected when one changes an automobile
registration from one state to another.

The purpose of these types of taxes is to prevent someone from purchasing a
big-ticket item in a low tax state, then registering/using it in a high tax
state.

Assume you live in State 'A', which has a sales tax rate of 10%. If you
bought an airplane for $100,000 in State 'A' and kept it there, you would
pay $10,000 in sales tax to State 'A'.

But if you went to State 'B', which has a sales tax rate of 5% to buy the
$100,000 airplane, you would pay $5,000 in sales tax to State 'B'.

However, if you bought the airplane in State 'B' and begin keeping/using it
in State 'A', State 'A' would then charge you a "use tax" of $5,000, or the
difference between the $5,000 sales tax you paid to State 'B' and the amount
the tax would have been had you purchased the airplane in State 'A'. Again,
this is to prevent residents of State 'A' from buying big-ticket items in
other states in order to avoid the (high) sales taxes in State 'A'.

This whole thing is nothing more than someone incorrectly interpreting some
very common tax regulations. From some of the posts I have read here and
elsewhere, this interpretation may be a deliberate attempt to create panic.

But Florida will no more try to impose a use tax if you fly your airplane
there for a two week vacation than they would if you drove your car there
for a two week vacation.



"WJRFlyBoy" wrote in message
. ..
On Tue, 01 Apr 2008 12:28:45 -0500, Jim Logajan wrote:

http://www.fata.aero/news.asp?news_id=88&display=yes

So basically he wasn't charged any sales or use tax. That is not what the
A.N.N. story claimed. The Cirrus owner simply assumed that the advice he
heard over the phone was valid and canceled his plans.

This Cirrus owner and the Cirrus owner in the OP are not necessarily the
same person/plane.

Here's FDOT's position paper on the matter.

http://dor.myflorida.com/dor/taxes/s...aft_owner.html

I don't think there is any argument whatsoever here. Florida sees the
aircraft entering Florida as "use" of Florida (air) facilities, not a
"sales" tax on the transaction. They clearly state they do ramp checks.

Does this mean Sun n Fun attendees are liable for use taxation? Sure
does. Does this mean that there is a likelihood they will be taxed? I
don't see the likelihood at all.