Sales and Use Tax
The cost of acquiring an aircraft can be extremely high. One of the largest upfront costs during the acquisition is the payment of sales and/or use tax on the aircraft purchase. Fortunately there exist planning opportunities that can defer or even eliminate the imposition of sales and use taxes in almost every state.
Effective July 1, 2010, the State of Florida adopted amendments to its statutes which clarifies the applicability of use tax to nonresidents who bring their aircraft to Florida for use following the purchase of the aircraft outside of Florida, provided the time that the aircraft spends in Florida is limited or the aircraft is brought to Florida for certain specified purposes. The amendments also provide for partial exemptions from Florida sales tax for purchases by Florida residents of fractional interests in aircraft that are sold by fraction aircraft program providers meeting certain requirements.
These amendments must be read carefully before any conclusion is reached with respect to the applicability of Florida sales or use tax.
About Stewart H. Lapayowker, P.A.:
Based in Fort Lauderdale, Fla., the law firm of Stewart H. Lapayowker, P.A. focuses its practice on private and corporate aviation transactions worldwide, including throughout the United States, South America, the European Union, Asia and the Middle East. The firm regularly assists clients with a variety of issues related to aviation, including the sale, purchase, regulatory analyses, financing and management of corporate aircraft.