Florida Snowbirds and Use Tax

[RV7ator]

What's your experience? How does Florida treat aircraft registered with the FAA in another state to an non-resident owner, also a resident of that state, when you winter in Florida for three or so months. Does a second home or extended rental, or simply being in the wrong place at the wrong time for a number of days trigger some form of use tax or registration fee in Florida?

John Siebold

 

[Rick_A]

Nothing to worry about as far as I know. I am not aware of any use tax on airplanes in Florida. I moved back here 6 years ago and never got any form of tax notice.

One of the things I love about Florida is that it is a very low tax state.

 

[Freemasm]

Yes. No state income, luxury, G&S , etc. taxes.

Nothing worse than paying taxes on something you already own.

 

[BobTurner]

‘Use tax’ is a poorly named end-run around the constitutional prohibition on interstate sales tax. I know of no state that charges it for things you have owned for some time. If FL has a property tax on aircraft, that you’d need to check out.

 

[RV7ator]

A variety of answers. So I did a bit of digging. Beware. This is going beyond anecdotal. Copied from a page on the FL Revenue site:

"Aircraft Temporarily in Florida – An aircraft owned by a nonresident of Florida is exempt from use tax if the aircraft enters and remains in Florida for no more than a total of 20 days during the six-month period after the date of purchase.

An aircraft owned by a nonresident of Florida is exempt from use tax if the aircraft enters and remains in Florida exclusively for flight training, repairs, alterations, refitting, or modifications. The days the aircraft remains in Florida for these purposes are not included in the nonresident’s 20-day period.See Tax Information Publication (TIP) 10A01-11 issued on June 29, 2010."

"...after the date of purchase." What's that mean? If I built/bought an RV six months and a day before bringing it into Florida, I'm exempt? I don't believe that. Elsewhere I read that Florida doesn't impose an annual property tax, instead imposing a one-time 6% sales tax for in-state purchases, or a one-time 6% USE TAX if an aircraft is brought into and remains in the state for more than 20 days. That count is an aggregate for all trips. That seems rather heavy-handed for a state that depends on tourism. There are exemptions exclusively for training, maintenance, and so on, not for visiting. Or snowbirding.

Makes me wonder just when Florida revenuers will start using ADS-B data to capture time-in-state. 6% of a $150K RV = $9,000. Almost as greedy as Disneyland.

Anyone else with additional insight?

 

[CZ79]

A variety of answers. So I did a bit of digging. Beware. This is going beyond anecdotal. Copied from a page on the FL Revenue site:

"Aircraft Temporarily in Florida – An aircraft owned by a nonresident of Florida is exempt from use tax if the aircraft enters and remains in Florida for no more than a total of 20 days during the six-month period after the date of purchase.

An aircraft owned by a nonresident of Florida is exempt from use tax if the aircraft enters and remains in Florida exclusively for flight training, repairs, alterations, refitting, or modifications. The days the aircraft remains in Florida for these purposes are not included in the nonresident’s 20-day period.See Tax Information Publication (TIP) 10A01-11 issued on June 29, 2010."

"...after the date of purchase." What's that mean? If I built/bought an RV six months and a day before bringing it into Florida, I'm exempt? I don't believe that. Elsewhere I read that Florida doesn't impose an annual property tax, instead imposing a one-time 6% sales tax for in-state purchases, or a one-time 6% USE TAX if an aircraft is brought into and remains in the state for more than 20 days. That count is an aggregate for all trips. That seems rather heavy-handed for a state that depends on tourism. There are exemptions exclusively for training, maintenance, and so on, not for visiting. Or snowbirding.

Makes me wonder just when Florida revenuers will start using ADS-B data to capture time-in-state. 6% of a $150K RV = $9,000. Almost as greedy as Disneyland.

Anyone else with additional insight?

They do ramp checks here as well. When I bought my certified aircraft, I talked to them about it. The lady I talked to basically said if the tax was paid somewhere else because that where the plane was based, they wouldn't tax you on it. Take that as official as it can be construed, since it is in violent disagreement with the website.

 

[roadrunner20]

‘Use tax’ is a poorly named end-run around the constitutional prohibition on interstate sales tax. I know of no state that charges it for things you have owned for some time. If FL has a property tax on aircraft, that you’d need to check out.

True, I moved from Florida to NC for 4 years & had to pay tax annually on my 7, even though I owned it for 15 years. I’m happy to be back in the free state of Florida.

 

[lr172]

Makes me wonder just when Florida revenuers will start using ADS-B data to capture time-in-state. 6% of a $150K RV = $9,000. Almost as greedy as Disneyland.

Anyone else with additional insight?

Most of these states get reports from fbos each month with n numbers of all aircraft on the field. They don’t need adsb to know whwt planes are parked where and for how oong.

 

[RV6-KPTW]

"...after the date of purchase." What's that mean? If I built/bought an RV six months and a day before bringing it into Florida, I'm exempt? I don't believe that. Elsewhere I read that Florida doesn't impose an annual property tax, instead imposing a one-time 6% sales tax for in-state purchases, or a one-time 6% USE TAX if an aircraft is brought into and remains in the state for more than 20 days. That count is an aggregate for all trips. That seems rather heavy-handed for a state that depends on tourism. There are exemptions exclusively for training, maintenance, and so on, not for visiting. Or snowbirding.

I was caught in this exact situation. Florida wants to collect tax. Built my RV14 in PA where aviation is tax exempt. Moved to Florida and traveled back and forth to PA to finish the airplane. Not sure how the FL knew the airplane was here but I think I recieve a notice of some kind. The tax authority was initially flummoxed because I did not buy it, I built it.

I was able to establish the 6 months for exemption by using the date of the airworthiness certificate and flight logs (Flightaware). Serendipitously, the covid lockdowns helped me avoid the tax. I got the airworthiness certificate in late 2019 in PA and just before commercial travel became difficult. I hunkered down in FL and snuck to PA 6 months and 2 or 3 days later. I was completely unaware of this issue and missed the tax window by the hairs of my chinny chin chin. I recollect it being a big chunk of money and worthy of effort to avoid.

 

[n82rb]

the sticky point is if you have owned it for more than six months in another state you can bring it to florida without a tax as long as you "bought it with no intent of bringing it to florida" they don't want you to buy it in an other state, leave it there for six months, then bring it in the state with no tax. if you are a florida resident and try that they will come after you.

 

[Low Pass]

Most of these states get reports from fbos each month with n numbers of all aircraft on the field. They don’t need adsb to know whwt planes are parked where and for how oong.

Speaking of this, there's pending action in Congress to control/limit the unintended use of ADS-B. I need to call myself...

 

[RV7A Flyer]

the sticky point is if you have owned it for more than six months in another state you can bring it to florida without a tax as long as you "bought it with no intent of bringing it to florida" they don't want you to buy it in an other state, leave it there for six months, then bring it in the state with no tax. if you are a florida resident and try that they will come after you.

I'm not sure this is the case. IANAL, but the law that I read (and others have referenced) says 6 months. Period. It doesn't say "six months unless you intend to bring it to Florida after that time has expired" or the like. 6 months is 6 months, reasons for keeping it out of state don't likely enter into it (or at least, I'm pretty sure a good tax lawyer could make the case that since the law doesn't say intent is a factor, it's not).

Seems like the best course of action here, to get back to the original question, would be to consult a knowledgeable professional, though.

 

[RV7ator]

Thanks for the responses. There's hope.

Here are excerpts from Florida Revenue GT-80008:

"All aircraft sold, delivered, used, or stored in Florida are subject to Florida’s sales and use tax, plus any applicable discretionary sales surtax, unless exempt. Florida aircraft dealers and brokers are required to collect tax from the purchaser at the time of sale or delivery."

"An aircraft sold by or through a registered dealer or broker to a purchaser who is a nonresident of Florida at the time of taking delivery of the aircraft in Florida is exempt." There are restrictions.

"Aircraft Temporarily in Florida - An aircraft owned by a nonresident of Florida is exempt from use tax if the aircraft enters and remains in Florida for no more than a total of 20 days during the 6-month period after the date of purchase." There are additional restrictions, and silence about any time beyond six months. Exempt forever even if I take up residence in Florida?

That 20-day business seems directed at aircraft bought anywhere in the recent six months and remain unless exempt for a few reasons.

It's convoluted enough without even raising the matter of amateur built that I'm going to ask for a private letter from the revenuers confirming that my ancient snowbirding RV will be exempt from use tax.

Thanks all for your thoughts.

John Siebold

 

[dmattmul]

As others have referenced it appears the key to this is 12A-1.007 in Florida:

12A-1.007 Aircraft, Boats, Mobile Homes, and Motor Vehicles.

(2) Purchases Outside Florida.

(a) There shall be a presumption that any aircraft, boat, mobile home, motor vehicle, or other vehicle purchased in another state, territory of the United States, or the District of Columbia but titled, registered, or licensed in this state is taxable except as otherwise provided in subsection (26) of this rule. This presumption may be rebutted only by documentary evidence that the person owning the aircraft, boat, mobile home, or motor vehicle purchased the aircraft, boat, mobile home, or motor vehicle in another state, territory of the United States, or the District of Columbia six (6) months or more prior to the time it is brought into this state. In order for such property to be presumed exempt as purchased for use outside Florida, the person owning the aircraft, boat, mobile home, motor vehicle, or other vehicle must provide documentary proof that such property was used in other states, territories of the United States, or the District of Columbia for six months or longer under conditions which would lawfully give rise to the taxing jurisdiction of another state, territory, or District of Columbia and any lawfully imposed tax was paid to such state, territory, or District of Columbia before being imported into this state. However, the rental or lease of any aircraft, boat, mobile home, or motor vehicle which is used or stored in this state is taxable without regard to its prior use or tax paid on the purchase outside this state.

Now if they want to see proof the airframe was legally registered (and sales tax paid if required) in the state where it came from is another issue.

 

[Allan Stern]

A variety of answers. So I did a bit of digging. Beware. This is going beyond anecdotal. Copied from a page on the FL Revenue site:

"Aircraft Temporarily in Florida – An aircraft owned by a nonresident of Florida is exempt from use tax if the aircraft enters and remains in Florida for no more than a total of 20 days during the six-month period after the date of purchase.

An aircraft owned by a nonresident of Florida is exempt from use tax if the aircraft enters and remains in Florida exclusively for flight training, repairs, alterations, refitting, or modifications. The days the aircraft remains in Florida for these purposes are not included in the nonresident’s 20-day period.See Tax Information Publication (TIP) 10A01-11 issued on June 29, 2010."

"...after the date of purchase." What's that mean? If I built/bought an RV six months and a day before bringing it into Florida, I'm exempt? I don't believe that. Elsewhere I read that Florida doesn't impose an annual property tax, instead imposing a one-time 6% sales tax for in-state purchases, or a one-time 6% USE TAX if an aircraft is brought into and remains in the state for more than 20 days. That count is an aggregate for all trips. That seems rather heavy-handed for a state that depends on tourism. There are exemptions exclusively for training, maintenance, and so on, not for visiting. Or snowbirding.

Makes me wonder just when Florida revenuers will start using ADS-B data to capture time-in-state. 6% of a $150K RV = $9,000. Almost as greedy as Disneyland.

Anyone else with additional insight?

I paid use tax in Florida on my RV 12, my RV 14 and my SubSonex kits. When I purchased a used AutoGyro I had to pay taxes like a car. When I moved to Florida and brought my RV 8A down, I don’t think I paid taxes on it because I had paid use tax in Ohio. But if you transfer residency and owe taxes they will find you eventually.