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Fri, Dec 31, 2021

Florida Lawmakers Propose Aircraft Tax Repeal

Rescinding the 6% Tax Would Make the State More Attractive To Aviation

Florida's lawmakers have put out two Republican-sponsored bills in the house and senate that would see the state lift its 6% tax on aircraft purchases. The change would hopefully boost interest in the state, as well as bolster the aviation economy of the region.

State economists point to estimates from Florida's Revenue Estimating Conference that expect a shortfall of $25.4 million per year, with local governments possibly subjected to nearly $8 million in loss. The bill's sponsor says that is acceptable, however, as Florida is now consistently losing out on business because of the tax, losing more than it brings in. Other states in the union have rescinded their aircraft taxes, like New York and Delaware. The lack of added costs result in Floridian buyers making the pilgrimage to outside dealers, often further adding to the economy while away with the purchase of customization and maintenance. 

The House bill sponsor, Toby Overdorf, says the effect goes far beyond the apparent loss of the plane tax. “The amount of jobs that we would be getting from it, the amount of crew members and housing and the trickle down effect, in my opinion would far outweigh any general revenue that may be lost by the sales of these aircraft.”

“What we’re trying to do is be on the same playing field as some of the other states in terms of recruiting these manufacturers here so that they can make these sales,” said Travis Hutson of his Senate bill. 

FMI: www.flsenate.gov

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