Could Save Businesses As Much As $600,000 Per Year

It's a long way from a Senate committee vote to state law, but a the tax-writing committee for the Florida Senate has given approval to legislation that would exempt FBOs from paying intangibles taxes to the state on their lease holdings.

The Orlando Sentinel reports that thee FBO companies in the state, Galaxy Aviation, Aviation Center, and Boca Airport, are facing assessments from the state Department of Revenue for back taxes on lease holdings as far back as 1985. The FBOs had argued that a property tax exemption specifically dealing with FBOs should have made them exempt, but a court has sided with the DOR.

Two separate pieces of legislation were attached to a Senate bill which contains several tax breaks for businesses. The bill would also create a sales tax exemption for companies that manufacture gas-turbine and aircraft engines.

The FBOs say that because they lease property at government-owned facilities ... airports ... and provide air-related services that they should not have to pay the intangibles tax on the properties they lease.

If passed, the measure could save each of the companies about $600,000 per year. But as cash-strapped as the state of Florida says it is, the measure likely faces an uphill battle.

FMI: www.myflorida.com