Florida Sales Tax

[bnicolette]

So, I get a notice in the mail to day about paying Florida Sales Tax on my airplane.  The airplane came from florida but I have it registered in DE.  I know a lot of folks register their planes in DE for business reasons, but I work in DE and this is where I registered the airplane.  The tax lady said since I bought the airplane in Florida that I owe the tax.  However, I took delivery of the airplane in PA via a ferry pilot and  I wired the money to the seller.  I live in PA and also have a rental home in MD (close to KILG where I work).  I am not sure how to handle this?  Is anybody familiar with the Florida tax laws and how I should proceed?

Thank you

B~

[Parker_Woodruff]

Quote: Bnicolette

So, I get a notice in the mail to day about paying Florida Sales Tax on my airplane.  The airplane came from florida but I have it registered in DE.  I know a lot of folks register their planes in DE for business reasons, but I work in DE and this is where I registered the airplane.  The tax lady said since I bought the airplane in Florida that I owe the tax.  However, I took delivery of the airplane in PA via a ferry pilot and  I wired the money to the seller.  I live in PA and also have a rental home in MD (close to KILG where I work).  I am not sure how to handle this?  Is anybody familiar with the Florida tax laws and how I should proceed?

Thank you

B~

[bnicolette]

Darnit Parker, I was counting on you for the solid answer!!  I guess maybe I should write a letter explaining the chain of events and send it in?  

[Hank]

Just don't ignore it, that makes them angry . . . and you don't want any tax people mad at you.

The state kindly sent me a letter this spring advising me that I had a mathematical error in my 1040 [earned less than reported], but that I owed more tax. Their addition included the amount I had paid beyond withholding plus the amount I owed when refigured for the reduced income. All it took was a phone call, then they mailed me a check.

I would call the Florida tax people and explain it to them. If'n they are dead set on collecting sales tax, maybe they should get it from the seller?

[bnicolette]

The one line says:  All sales of aircraft between individuals are taxable if the sale and/or delivery occurs in Florida.

 

Thank you for that Jim.  I guess the confusion comes in where the aircraft was delivered to DE and then I wired the money to the seller.  So, where did the sale take place?  I think the tax people think since it's registered in DE that I just set up a corporation in DE to get out of paying the taxes which is not true at all.  I work out of DE and the plane is there more than not, PLUS I didn't want to pay any taxes.  :-)   That may have back fired on me though.

 

[John Pleisse]

Brett,

It is either the bill of sale being filed with the state of FL by the seller. Or, if you are carrying any kind of debt service on the plane, the bank loan departments report it. Tell Florida, as a non resdisident, it is not encumbent upon you to pay it or respond to them. If it was a bank loaning you money that reported you to FL, threaten to close your accounts....they'll fix it in one minute.

Although to FL's defense, they have a ga-zillion snow birds living in-state, claiming resdidencey of 6 mos and 1 day... per year ....elsewhere.

[thinwing]

oh oh....you should have had a signed buy /sell agreement...spelling out that the purchase /bill of sale/delivery was to be conducted out of state ..in your case Deleware.What i would do after reading the florida requirements is to send to Florida tax people...1..notarized under penalty of perjury from the owner that you took delivery of the a/c in deleware.2same statement notarized from the delivery pilot 3 proof you registered a/c out of state4 proof a/c has not returned to florida...(use flight aware to back up log stements)This final thing is to avoid not sales tax but use tax..good luck..6%is 6% and most states are broke..the bad thing is they wanted you to provide this 10 days after purchase..not 6 months..good luck..kpc

[bnicolette]

Hey John,

I have kept in communication with the seller so I will ask him about that.  There is no lean on the airplane and no bank was involved through any part of the purchase.  I was thinking of asking the seller if he would agree to sign and back date a bill of sale stating that the sale would take place in delaware after inspection by me.  We already had a verbal on that matter anyhow so I hope it won't be a problem.

Flight aware will only go back till April.

[Cris]

What would you do? I also just got a letter from the Fla State Revenue Service demanding that I pay sales tax. In my case the A/C was purchased & delivered in Michigan in late Jan. I live in NJ & the A/C is a Dl. Corporation. I then flew it by way of Miss. to Ft Meyers Fl. for the 3 day MAPA PPP. At that point I left Fl & returned to NJ. I am not & never have been a Fl resident. I have not been back to Fla. since. The "very nice" lady to whom I spoke demanded to know if I had paid sales tax elsewhere on my Deleware Corp. since they cooperate with other states. I said nothing except to say that I am sick & tired of being harrassed by any state that wants to find an excuse to tax small business. Imagine if we had to deal with every state tax bureau that we landed within!! To prove my case, I am being required to forward all hanger receipts since purchase to prove the A/C has not lived in Fla. since purchased. Although she did not say to me that I had to prove in which state I resided I am sure that will be the next shoe to drop. I suppose she will want my personal income tax forms or mortgage statements next.  I am so tired of our goverments trying to find any way possible to harrass us that I really do not want to provide anything to this "very nice" woman who obviously does not have my best interests at heart. Seems the old owner had a place in Fla. which is what triggered the letter although he lives in Michigan. What would you do?      

[stevesm20b]

I would not pay it!

[thinwing]

The problem with simply not paying a disputed tax bill is twofold....one they can place a lien on the aircraft and also include additional interest and penalty that can really snowball upward...than come time to sale the aircraft and its no dice..kpc

[Cris]

Good points, thanks but has anyone had any actual exprience with being an out of state purchaser/resident who received such a demand letter? How was it resolved. Thanks

[TLSDriver]

Quote: thinwing

The problem with simply not paying a disputed tax bill is twofold....one they can place a lien on the aircraft and also include additional interest and penalty that can really snowball upward...than come time to sale the aircraft and its no dice..kpc

[TLSDriver]

Quote: thinwing

The problem with simply not paying a disputed tax bill is twofold....one they can place a lien on the aircraft and also include additional interest and penalty that can really snowball upward...than come time to sale the aircraft and its no dice..kpc

[carusoam]

Cris,

 

I used my accountant here in nj.  I summarized the details, as you have.  He put it on letterhead and made the phone call.

 

Everything settled out as you would have expected.  

 

The tax office was NJ, but the claims were as fictitious as yours in FL.

 

Let me know if you want my accountants contact info....

 

Best regards,

 

-a-

[stevesm20b]

According to TLSDriver. That means that a State can claim you owe them money, weather you do or not, and there is nothing you can do about it, but pay them?

[orangemtl]

If you don't live in Florida, and don't work there, and have no commercial operations there, and the plane isn't based there, isn't the defensible answer that they've no jurisdiction over you, the plane, nor your finances and should therefore go p--s off?

I'm no lawyer nor accountant, but:  They can only do something to you if they have leverage. Maybe I missed some essential details, like part time living down there: but if I live in AZ, bought a plane from Florida, and based it in Nevada (for example), what exactly could FL do to touch me?

[Cris]

Quote: orangemtl

If you don't live in Florida, and don't work there, and have no commercial operations there, and the plane isn't based there, isn't the defensible answer that they've no jurisdiction over you, the plane, nor your finances and should therefore go p--s off?

[stevesm20b]

Sounds to me like anyone that buys a plane that was registered in FL or flys into FL within 6 months of purchase, can expect a tax bill. Even if the airplane was purchased in another state. I'm not sure how Florida can get away with that. Of course it would probably be cheeper to pay the tax than to sue Florida in Federal court.

[Parker_Woodruff]

"When in the course of Human Events..."

Being a Texas resident working often in Florida, I made sure when I bought my plane to file IFR into the state and file IFR out of the state within 19 days.  It is clear on flightaware.com.  You get a max of 20 days before they tax you.  Now my plane is being operated only in Texas until December 17, when I can legally bring it to FL.

[thinwing]

Cris...in your case not having tie down reciepts not that big a deal...Any maintance work such as the msc in new jersey is also good ..get them to type out a too whom it may concern or statement of facts letter...Regarding aircraft tracking...the state tax people use other tracking services...much longer time periods..years i have heard..your best bet is to provide the infomation ...if you get a bill anyway you can appeal the bill but then you should use a florida state sales tax expert..good luck...kpc