Florida Sales Tax on Aircraft Parts
Section 212.08(7)(rr) of the Florida state code:
(rr) 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.
I know there are a bunch of builders in Florida has anyone used this to pay their sales tax obligation? Isn't an RV14 just a collection of parts? Many states have this same wording in their code.
In addition this was posted on an attorney's web site:
SALES TAX ON AIRCRAFT PARTS AND REPAIRS IN FLORIDA
The general rule is aircraft parts are considered to be tangible personal property, which are subject to tax when purchased or used in Florida. Sections 212.02(19), 212.05, and 212.06, Florida Statutes (“F.S.”). However, the legislature has provided an exception to this general rule.
Specifically, parts used to repair an aircraft that is repaired or maintained in Florida are exempt from Florida sales and use taxes. Section 212.08(7)(rr), F.S. The key to this exemption is the aircraft must have a maximum certified takeoff weight of more than 2,000 pounds. Since labor charges are taxable when paired with an otherwise taxable repair, the legislature has also exempted the labor on these usually taxable repairs of aircraft with a maximum certified takeoff weight of more than 2,000 pounds. Section 212.08(7)(ee), F.S.
Naturally, the next question is how do you prove you are entitled to the exemption? The Florida Department of Revenue (“Department”) has published guidance that the tail number (or “N” number) as well as the maximum certified takeoff weight should be documented on the bill of sale, invoice, or other proof of sale. Whether you are a purchaser or a seller, please ensure you follow this direction by the Department. It is incredibly easy to do ahead of time instead of trying to piece it together afterwards during an audit.