Saving FL Sales Tax

[fantom]

Warning from David Taisch:

 

 

Subject: FLORIDA MOONEY LUNCH GROUP, INFORMATION ON SAVING FL SALES TAX.

 

 

 

 

 

Dear Mooney Enthusiast,

 

This is not a message about lunch group meetings, so do not read further if you do not want info on other things.

 

As most of you probably know, Mooney Owners in Florida do not have to pay Florida Sales Tax on maintenance and upgrades after 1/1/12 since our gross takeoff weights exceed 2,000 pounds.  At your maintenance shops in Florida, all they have to do is type in your N number and gross weight on the invoice, and then they do not have to collect sales tax.

 

But, Jeppesen has started charging sales tax for data updates on Garmin and other radios.  I have contacted the Florida Department of Revenue and questioned the propriety of that.  A lawyer on their staff sent me a letter stating that in his opinion we were not obligated to pay sales tax for this purpose since the data we were buying was a requirement for IFR flight.  However he said it was his opinion not official Department Policy.  He went on to say it was basically impossible to get an official Department Policy statement.  He also stated that the department would never tell a company that shouldn't collect the tax, only how to properly document non tax ability.

 

I passed his letter on to Jeppesen and they said they would not consider it since it was not official Department Policy.

 

I then contacted AOPA, and put them on the problem.  They agreed to help, but were slow in doing so.  After prodding them more than once, they were finally successful - sort of.  The agreement is Jeppesen will collect the tax, then we will contact them (Jeppesen) and give them our N number and gross take off weight, and they will refund the money.  Even though it is sort of awkward, AOPA and I are hoping they will get enough people doing this that they will start collecting the information when you purchase the subscription and not collect the tax, a far simpler procedure.

 

So, after you order and pay for your Jeppesen updates of Garmin 530/430 or Garmin 1000s, Avidyne, and others,   E-Mail Denise Piz at Deneise.Piz@jeppesen.com and tell her you are from Florida (if it is true) have a Mooney, N XXXXX with a gross takeoff weight of XXXX pounds, and recently bought update service on Invoice #XXXXXXXX and want a refund of your Florida Sales Tax.  Also, send a carbon copy to Rodney Martz at Rodney.Martz@aopa.org and Ferdinand Mack at Ferdinand.Mack@aopa.org.  It is important that Rodney and Ferdinand know we are wanting to save the tax money so they keep after Jeppesen to simplify the procedure.

 

Of a personal nature, I am changing my Garmin 530's (both airplanes) and Garmin 430 out for new Avidyne IDF 540/440s.  As a result, I will have 1 Garmin 530 for sale very soon, and another 530 and a 430 for sale in the not to distant future.  If you want one, either e-mail me or call me at 352-343-3196.

 

Dave

 

 

 

 

 

[DAVIDWH]

A bit off course, but I was able to completely avoid state sales tax on purchase of aircraft (Three years running) by

 

going through a Delaware LLC. Corp, Cheap and about 15 minuets on line to do it. Not sure how this (Aircraft legally registered in Del.) would work with maintenance issues,

 

but will find out as my AP has been collecting on maint. locally and I have been paying.

 

As a side note, good luck on getting any refund $$ from the Jeppesen bandito's.

[ArtVandelay]

Not sure about Florida, but North Carolina doesn't care, they actually require Marinas and FBOs to report all resident vehicles, you will get a tax bill automatically, if you have your plane in a private hangar they probably will never know...if they find out, it's a 10% penalty

[FloridaMan]

FL is a 50% penalty, but they tend to waive it if you call them when you get their letter. 

[smccray]

A bit off course, but I was able to completely avoid state sales tax on purchase of aircraft (Three years running) by

 

going through a Delaware LLC. Corp, Cheap and about 15 minuets on line to do it. Not sure how this (Aircraft legally registered in Del.) would work with maintenance issues,

 

but will find out as my AP has been collecting on maint. locally and I have been paying.

 

As a side note, good luck on getting any refund $$ from the Jeppesen bandito's.

 

Bad advice.  A Delaware corporation will make it more difficult for you to be found, but if you owe the tax without a Delaware corporation, you probably owe the tax with a Delaware corporation.  The out of state entity makes it more difficult to find you, but it probably doesn't affect the taxes that you owe in keeping with the letter of tax regulation.  I have seen tax reduction strategies (e.g. equipment leasing) that reduce and change the way that taxes are collected, but I haven't seen a situation where simply owning an airplane in a Delaware corporation would affect taxation.

 

Be very careful David.  If you have a strategy that works I would love to hear it here or via PM.  

[philiplane]

Delaware LLC's do not relieve tax burdens of planes registered in Delaware but "based" in states that have sales and use taxes. States may levy a "use" tax equal to the sales tax rate on a purchase, such as $6,000 per 100,000 of value, plus penalties, for each year of non-compliance. 

 

The aircraft base is typically considered the domicile where the aircraft spends more than 50 percent of it's annual time. 

 

Legitimate exceptions may include leasing the plane back to a flight school, or Part 135 operator.

[Piloto]

If you though a 6% tax was bad try 20% VAT in the UK, ouch!!!

 

José

[Marauder]

Delaware LLC's do not relieve tax burdens of planes registered in Delaware but "based" in states that have sales and use taxes. States may levy a "use" tax equal to the sales tax rate on a purchase, such as $6,000 per 100,000 of value, plus penalties, for each year of non-compliance.

The aircraft base is typically considered the domicile where the aircraft spends more than 50 percent of it's annual time.

Legitimate exceptions may include leasing the plane back to a flight school, or Part 135 operator.

Of course, you could live in Delaware like I do and avoid all of this tax stuff. The First State and the Home of Tax Free Shopping.

[ArtVandelay]

Of course, you could live in Delaware like I do and avoid all of this tax stuff. The First State and the Home of Tax Free Shopping.

We don't have income taxes and don't pay taxes on aircraft maintenance in Florida...it all evens out in the end.

[Raptor05121]

I'm bumping this to the top. I'm looking for info on sales tax of aircraft in FL. Who/what/when/where/why/how.

[mike_elliott]

I'm bumping this to the top. I'm looking for info on sales tax of aircraft in FL. Who/what/when/where/why/how.

Google is your friend here.... 

if you type in "florida airplane sales tax" you get

http://dor.myflorida.com/Forms_library/current/gt800008.pdf

[Raptor05121]

I've got that. Looking for firsthand experience here.

[mike_elliott]

I've got that. Looking for firsthand experience here.

My bad, I thought it was fairly comprehensive on what the State of Florida wants for their Tithe. No first hand experience other than the Sales tax I paid on my plane in another state offset with credits the sales tax FL. would have received from me had I not paid sales tax in another state.