Florida law: Sales Tax for parts and repair services

[Mooney-Shiner]

I guess that I'm late to this party, but it looks like I was overpaying the taxes while buying parts. According to Florida Statue Section 212.08(7): 

1. Equipment used in aircraft repair and maintenance.—Replacement engines, parts, and equipment used in the repair or maintenance of qualified aircraft and aircraft of more than 2,000 pounds maximum certified takeoff weight, including rotary wing aircraft, are exempt from the tax imposed under this chapter if such parts or equipment are installed on such aircraft that is being repaired or maintained in this state.

2.   "All labor charges for the repair and maintenance of qualified aircraft and aircraft of more than 2,000 pounds maximum certified takeoff weight, including rotary wing aircraft, are exempt from the tax imposed under this chapter. Except as otherwise provided in this chapter, charges for parts and equipment furnished in connection with such labor charges are taxable."

My 67F is roughly 2700 max takeoff weight. So this means that I'm exempt?

[Bunti]

If you buy parts for your airplane you need to tell the shop before you pay your N-number and the 2740 LBS max TOW of your Mooney and ask for a sales tax free bill. They usually write the N number and the gross weight on the bill. 

I also own a M20F and did not pay sales tax on parts and labor since several years. 

 

 

[A64Pilot]

Your correct, and the law does not discriminate based on where the aircraft is Registered, so you could live in any State, come down here to have your aircraft worked on and not pay tax, like take a Disney vacation while Gulf Coast puts some Avionics in for example, so long as the work is done in Fl it’s tax free.

However you can live in Fl and have parts shipped to Fl, but if you buy them from AC Spruce they charge you tax unless the aircraft is Registered in Fl.

Last nail in the coffin for me, I think I’m done with Spruce. Chief is in Deland close to the airport I think I’m giving them a try.

According to the law the seller or mechanic is required to maintain an N number in order to ensure the GW limit, nothing about registration.

This explains it pretty well https://www.floridasalestax.com/florida-tax-law-blog/2017/december/sales-tax-on-aircraft-parts-and-repairs-in-flori/

[Fly Boomer]

2 minutes ago, A64Pilot said:

However you can live in Fl and have parts shipped to Fl, but if you buy them from AC Spruce they charge you tax unless the aircraft is Registered in Fl.

How do they know what airplane the stainless machine screws are for?  Or many other parts that could be used on any one of your airplanes.

[A64Pilot]

9 minutes ago, Fly Boomer said:

How do they know what airplane the stainless machine screws are for?  Or many other parts that could be used on any one of your airplanes.

After you posted that I posted a link, all they need by Fl law is to record the N number and gross weight. Spruce isn’t saying it could end up on another aircraft, they are saying the airplane must be registered in Fl, which is incorrect, Fl law even allows foreign aircraft, what Fl is after is getting the business in Fl, it’s actually not for Fl aircraft, the law is to help Fl businesses.

‘How much tax is in a $50,000 dollar engine to say nothing about labor tax in California? Fly your California airplane to Fl and have it all done tax free is the way I read the law, but of course call the shop and verify that first. Fl loses the sales tax, but a Fl shop gets the work 

‘I’ve not seen anywhere that you have to keep parts or supplies separate, for example oil for my C-140. Everything I buy unless it’s a C-140 part is bought for the Mooney, if some of those screws happen to end up on the 140 I’m sure Fl doesn’t care, if they did then they would state parts and supplies have to be kept separate 

[tony]

13 hours ago, A64Pilot said:

Your correct, and the law does not discriminate based on where the aircraft is Registered, so you could live in any State, come down here to have your aircraft worked on and not pay tax, like take a Disney vacation while Gulf Coast puts some Avionics in for example, so long as the work is done in Fl it’s tax free.

However you can live in Fl and have parts shipped to Fl, but if you buy them from AC Spruce they charge you tax unless the aircraft is Registered in Fl.

Last nail in the coffin for me, I think I’m done with Spruce. Chief is in Deland close to the airport I think I’m giving them a try.

According to the law the seller or mechanic is required to maintain an N number in order to ensure the GW limit, nothing about registration.

This explains it pretty well https://www.floridasalestax.com/florida-tax-law-blog/2017/december/sales-tax-on-aircraft-parts-and-repairs-in-flori/

I think we all need to support chief before spruce buys them up too......

[MMsuper21]

Didn’t realize that your plane didn’t have to be registered in Florida. That explains why so many shops are based in Florida. 

[RLCarter]

Texas has sales tax on parts, labor can be either taxable or non-taxable. Rule of thumb on non-taxable labor was if it had a license plate (registration) labor wasn’t tax, BUT, if you took something off and that assembly was repaired it was now taxable labor. This was on any vehicle, automotive, motorcycle, watercraft, etc….. both 6v and 12v batteries had an excise tax of $2.00 and $3.00 respectively based on capacity, so some smaller batteries were exempt. If I remember correctly I had  28 different categories set up in the software to keep it all straight and for monthly reporting to the state

[RobertGary1]

On 12/15/2022 at 2:21 PM, A64Pilot said:

After you posted that I posted a link, all they need by Fl law is to record the N number and gross weight. Spruce isn’t saying it could end up on another aircraft, they are saying the airplane must be registered in Fl, which is incorrect, Fl law even allows foreign aircraft, what Fl is after is getting the business in Fl, it’s actually not for Fl aircraft, the law is to help Fl businesses.

‘How much tax is in a $50,000 dollar engine to say nothing about labor tax in California? Fly your California airplane to Fl and have it all done tax free is the way I read the law, but of course call the shop and verify that first. Fl loses the sales tax, but a Fl shop gets the work 

‘I’ve not seen anywhere that you have to keep parts or supplies separate, for example oil for my C-140. Everything I buy unless it’s a C-140 part is bought for the Mooney, if some of those screws happen to end up on the 140 I’m sure Fl doesn’t care, if they did then they would state parts and supplies have to be kept separate 

You may avoid being caught but your California planes still owes California tax. California has use tax which is a sales tax on items bought out of state. 

[A64Pilot]

On 12/18/2022 at 12:47 PM, RobertGary1 said:

You may avoid being caught but your California planes still owes California tax. California has use tax which is a sales tax on items bought out of state. 

I don’t doubt your correct, but that’s not a Fl problem, Fl can’t speak for any other State. But does that go down to repair parts or just the end item? I suspect if you get your car repaired out of State you don’t owe Calif, but if you bought the car you do?

There are many snowbirds that come to Fl every year, and I assume most get their scheduled heavy maintenance done in Fl to avoid the tax, plus the time your airplane is in the shop doesn’t count against it for Fl’s use tax. If you stay longer than some interval I believe you owe tax, I think it was ignored for years then some time ago it was enforced and there was a lot of stink about that. Don’t remember the specifics. 

I know boats if they stay more than 90 days they have to register, but no tax, Fl doesn’t tax boats, but does airplanes. Fl does have sales tax on boats unless you remove them from Fl.

It appears that there is a Bill to stop taxing aircraft in Fl if I read this correctly, just found it and do not claim to be a lawyer, but it sounds like airplanes will not pay sales tax in Fl soon? IF the bill passes?

Be interested in others interpretations, I may be missing something.

Apparently if your out of State don’t stay longer than 20 days unless you meet one of the conditions in here, like receiving training or aircraft being worked on etc. Again I think it’s to help Fl flight schools, CFI’s and maintenance shops etc.

But that’s my opinion

Fl as a general rule is very aircraft friendly and it seems is becoming more friendly.

https://floridarevenue.com/Forms_library/current/gt800008.pdf

[Browncbr1]

Georgia is also a fly away state.  Get any work, avionics, etc.   then fly to your plane to your home state tax free. 

[Jetpilot86]

Anyone have any experience with this?

https://www.fdot.gov/aviation/faqs.shtm

[Schllc]

It depends on how the asset is classified, if it is used for legal business travel, and it titled in an LLC, you will not pay sales tax, but you will pay a use tax on the “rental” of the plane to yourself based on the hours used. 
if it’s a personal sale for personal reasons, you pay the full applicable sales tax. 

[Pinecone]

On 12/25/2022 at 4:47 PM, A64Pilot said:

Apparently if your out of State don’t stay longer than 20 days unless you meet one of the conditions in here, like receiving training or aircraft being worked on etc. Again I think it’s to help Fl flight schools, CFI’s and maintenance shops etc.

But that’s my opinion

Fl as a general rule is very aircraft friendly and it seems is becoming more friendly.

https://floridarevenue.com/Forms_library/current/gt800008.pdf

The exact wording says that the 20 day limit is only for the first 6 months after purchase. 

[philiplane]

On 2/7/2024 at 10:07 PM, Jetpilot86 said:

Anyone have any experience with this?

https://www.fdot.gov/aviation/faqs.shtm

Yes. If you owned a plane for more than six months outside of Florida, then there is no sales or use tax due when you bring it into the state. 

No annual tax, no state registration fees either. No tax on parts or service to your plane. Been here 14 years after coming from the taxed-to-death Northeast and it's been great. Paid nothing to bring my plane in back in 2009. Sold it in 2017, bought another from Pennsylvania and brought it here. Paid the six percent within 30 days, and got a phone call from the department of revenue THANKING me for sending it in. Every state should be so easy.