Benefits Out-Of-State Visitors, State Aviation, Tourism Businesses

Friday, in the waning days of the Florida legislative session, The Florida Senate passed House Bill 173, which exempts visiting aircraft from the state's use tax. Passage of the bill came Friday, and with Governor Charlie Crist's expected signature, it will take effect in July.

Under current law, out-of-state aircraft owners who visit Florida within six months of purchasing their aircraft are subject to a use tax of up to 6 percent of the total value of the aircraft. When the new law takes effect, out-of-state aircraft owners will be able to visit Florida with new aircraft for up to 21 days for any purpose - or for an unlimited amount of time within this six-month period for the exclusive purpose of flight training, repairs, retrofitting, or modification - without being subject to the state use tax.

"This is certainly a positive measure for the general aviation industry and economy as a whole in Florida, with so many workers employed in this field," said Senate President Pro Tem Mike Fasano. "We look forward to welcoming out-of-state aircraft owners back into the state to utilize our world-class aviation businesses and facilities - and to enjoy all that Florida has to offer."

The bill is expected to pay dividends to the state's tourism industry as well.

The Florida Aviation Trades Association and aviation allies have been working with legislators for 3 years to change the law. FATA told lawmakers that the current statute was actually keeping tourist and business dollars out of Florida, and that it was critical for Florida to make the change that will provide income not just for aviation but for all businesses in the State.

Among those working to push the bill through the Florida legislature were Florida Aviation Trades Association (FATA) representative Eric Prustman, as well as AOPA Director of State Government Affairs Mark Kimberling and AOPA Florida Regional Representative Nelson Rhodes.

“Our members pooled their resources to reach out to their Representatives and Senators to explain the importance of passing the House and Senate Bill," said FATA, Executive Director, Paula Raeburn.

"They are the unsung heroes who do the letter writing and make the phone calls that made the difference on this issue. Our presence in  Tallahassee is important but when the legislators hear from their constituents they know the voters are watching them in the Capital.” The National Business Aviation Association (NBAA) and the South Florida Business Aviation Association (SFBAA) also joined the campaign.

"This measure really required a lot of elbow grease with three scheduled committee stops in each chamber and a legislature grappling with a staggering budget shortfall," said Kimberling. "Yet, in the end, we had an incredibly strong partnership with the Florida (Aviation) Trades Association and two terrific bill sponsors in Senator Mike Fasano and Representative Ralph Poppell, and together we prevailed. Florida will soon be open for all visiting aircraft owners once again - without fear of undue taxation."

FMI: www.fata.aero, www.nbaa.org, www.sfbaa.org