Wed, May 23, 2007
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.
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