Just Bought A Plane? STAY OUT OF FLORIDA !

On 2008-04-01, news.chi.sbcglobal.net wrote:
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.

Unfortunately, they claim they can. From the FDoR page on sales and use tax,
http://dor.myflorida.com/dor/taxes/s...aft_owner.html :
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What Is Use Tax?

Use tax is a component of Florida's sales and use tax law. It is due on
purchases made out of state and brought into Florida within 6 months of the
purchase date.

The "use" component of sales and use tax provides uniform taxation of items
such as aircraft, which may be purchased outside Florida, but used,
hangared, or stored in the state.

Aircraft purchased and used outside Florida for more than 6 months are
generally exempt when brought into Florida, if both of the following
conditions are met:

The owner has owned the aircraft for more than 6 months.
The owner has used the aircraft in another state or states, U.S. territory,
or District of Columbia 6 months or longer prior to bringing the aircraft to
Florida.
-----
"Brought into Florida" is awfully broad.
--
Jay Maynard, K5ZC http://www.conmicro.com
http://jmaynard.livejournal.com http://www.tronguy.net
Fairmont, MN (FRM) (Yes, that's me!)
AMD Zodiac CH601XLi N55ZC (ordered 17 March, delivery 2 June)

Jay Maynard wrote:

..
-----
"Brought into Florida" is awfully broad.

It's really not. Virtually every state that has a Sales tax has a Use
tax. It is so that if you live or have an ongoing connection with a
state you can't get around paying the sales tax buy purchasing an item
in another state.

Here are some example of when a Use tax would be due.

You order from a mail order company that has no establishment in your
home state. Technically you are supposed to pay Use tax.

You have a business and are exempt from Sales tax for items that are
purchased for resale. Let's say you purchase 12 widgets. You put 11 of
them up for sale and keep one for either personal or business use. You
owe Use tax on widget number 12.

Now I will admit that the way the Florida law and tax regulation is
written in regards to aircraft is **** poor. But the spirit behind the
law is not to charge for Use of their airspace. It is so FL residents
don't buy an aircraft in FL. Fly to some state that doesn't have a sales
tax or otherwise have a good way to get around sales taxes on aircraft
and then fly it back. What makes the issue more tricky than say a car is
that unlike a car you don't have to get a state specific license for an
aircraft which shows that the car is registered and taxed somewhere else.

There is no true example of say a pilot from Arkansas purchasing a plane
in FL or Arkansas and then that pilot taking a vacation to FL and
getting taxed.

On 2008-04-02, Gig 601Xl Builder wrote:
"Brought into Florida" is awfully broad.
It's really not. Virtually every state that has a Sales tax has a Use
tax. It is so that if you live or have an ongoing connection with a
state you can't get around paying the sales tax buy purchasing an item
in another state.

Oh, I understand full well the intent of the tax. Minnesota has one, and
I'll be paying it on the Zodiac. (6.5% of the full purchase price, ouch!)

Now I will admit that the way the Florida law and tax regulation is
written in regards to aircraft is **** poor.

It's the letter of the law that counts.

But the spirit behind the law is not to charge for Use of their airspace.

Actually, the Minnesota use tax *does* intend to charge for use of the
airports and airspace: it's due if an aircraft uses either for more than 60
days out of the first year. Fortunately, they do only charge it for
Minnesota owners. (The provision is for cases where a Minnesota owner bases
the aircraft in another state; I could do that, for example, living as close
to Iowa as I do.)

There is no true example of say a pilot from Arkansas purchasing a plane
in FL or Arkansas and then that pilot taking a vacation to FL and
getting taxed.

There's gotta be fire under the smoke; EAA wouldn't be publishing this one
right before Sun n Fun if there weren't some basis for it.
--
Jay Maynard, K5ZC http://www.conmicro.com
http://jmaynard.livejournal.com http://www.tronguy.net
Fairmont, MN (FRM) (Yes, that's me!)
AMD Zodiac CH601XLi N55ZC (ordered 17 March, delivery 2 June)

On Wed, 02 Apr 2008 08:17:16 -0500, Gig 601Xl Builder wrote:

There is no true example of say a pilot from Arkansas purchasing a plane
in FL or Arkansas and then that pilot taking a vacation to FL and
getting taxed.

According to FDOR, they have and will continue to do just that.

FYI, you don't have to bring the aircraft to FL either.

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

Under most conditions, use tax is due on aircraft brought into Florida
within 6 months from the date of purchase. *However, use tax may be
immediately due if any of the following conditions are met:*

* The aircraft is owned by a Florida resident.
* The aircraft is owned by a corporation and used by a corporate
officer or director who is a Florida resident.
* The aircraft is owned by a corporate entity that has an individual
vested with authority to participate in the management, direction, or
control of the entity's affairs who is a resident of or makes his or her
permanent residence in this state.
* The aircraft is owned by a person, corporation, limited liability
company, partnership, joint adventure, association, syndicate, business
trust, trust, estate, or other form of artificial entity that is not
engaged in Florida in any employment, trade, business, or profession in
which the aircraft will be used.