[Airzen]

Hi All,

I am considering buying an aircraft from a private party in Florida and came across a tax issue that is bewildering me.

Looks like all sales in Florida are subject to use tax (irrespective whether the buyer is a non-resident or otherwise Florida). See this document.

Wondering if folks (non-resident in Florida), who purchased an RV from a Florida (private party) share experience about payment of use tax to Florida.

There is special exemption that states (see page 2 of the pdf):

?A nonresident buyer who will remove the aircraft from Florida may purchase an aircraft tax-exempt if sold by or through *a registered dealer*. Within five days of the date of sale, the dealer must provide us with a copy of the invoice, bill of sale, and/or closing statement; and the original, signed, removal affidavit.?

But his only holds if the seller is a registered dealer.

So looks like I?ll have to deal with Florida DOR. Am I reading this correct?

 

[daviid]

looks like you are paying that tax, however you should be able to claim that tax paid to your home state and claim a credit.

 

[mv031161]

Simple. Strike your deal and simply Just dont close the deal in florida! May i suggest SC or TN if in the area.

 

[mkbreezy]

Tax

Lots of folks close deals in SC because the sales tax on any aircraft is only $300.00. Even a G550. Property tax is a whole nuther issue.

 

[Airzen]

"Closing a deal"

So my next question:

How does DOR in FL determine the place of "closing a deal"?

Is it where the BoS is signed? Is it where the aircraft delivery is made? Is it where aircraft is located when BoS is signed?

And how do I defend myself when FL DOR comes after me to pay the sales tax even if the closing was outside FL.

Thanks much for all the replies so far!

 

[Lancair Super ES]

The states usually get their info from the FAA registrations docs, electronically. You can figure out the rest.

Recovering CPA

 

[cfiidon]

You have to look at both states

See http://dor.myflorida.com/dor/forms/2010/gt800008.pdf

It says sales and/or delivery is subject to the 6% FL sales tax and the first $5K is subject to the local surcharge. That could be 7.25% some places. But it also says you have 20 days "grace". Does this apply to purchases or just passing thru... I dunno.

If you do the deal in Florida you are liable for the tax, but how would they know and how would they collect from you?. Of course your home state may want to tax you. You need to find out if your home state's tax is more or less than Florida and if they credit you for a tax paid to another state.

I would suggest a call to your home state in which the aircraft will be domiciled. Then call Florida, because I think if you are a non-resident and immediately take it out of state, they can't come after you. Better safe than sorry.

Don