Aircraft Sales in Florida: Navigating Sales and Use Tax Turbulence

Buying an aircraft is an exciting milestone, whether for personal use or business. But in Florida, that excitement can quickly hit turbulence if you’re not prepared for the sales and use tax rules that come into play. At Kamish & Associates, we help clients plan ahead so that aircraft purchases take off smoothly, without unexpected tax bills grounding the deal.

Sales Tax Basics

In Florida, the sale of any tangible property, including aircraft, is generally subject to sales tax. There are exemptions available, but they require careful documentation to be valid. One of the most significant for nonresident buyers is the “fly-away” exemption.

The Fly-Away Exemption

This exemption allows a nonresident purchaser to buy an aircraft in Florida and remove it from the state without paying Florida sales tax - if specific conditions are met:

• The seller must be registered with the Florida Department of Revenue (DOR) for sales and use tax purposes.

• The purchaser must not be a Florida resident. For business entities, none of the owners, officers, or managing persons can be Florida residents or maintain a permanent abode in Florida.

• The aircraft must be removed from Florida within 10 days of purchase, unless placed in a qualifying repair facility.

• The aircraft cannot be used in Florida for any business, trade, employment, or professional purposes before removal.

  
  

Within 30 days of the sale, the seller must provide the DOR with the sales invoice, closing statement, and a buyer-signed affidavit claiming the exemption. The buyer must also prove, within 90 days, that the aircraft was licensed, registered, or otherwise documented outside of Florida.

The Use Tax Angle

If an aircraft is purchased outside Florida but later brought into the state, use tax may apply -unless an exemption is available. For example, an aircraft owned by a nonresident may be exempt if it spends fewer than 21 days in Florida during the first six months after purchase. Precise documentation, such as fuel receipts, tie-down records, and hangar invoices from outside the state, is critical to proving this exemption.

Business Considerations

For companies, an aircraft purchase has broader implications:

• Cash Flow: A missed exemption can create an immediate and significant tax liability.

• Operational Planning: Delivery schedules, maintenance stops, and initial flights must align with tax requirements.

• Entity Structure: Residency rules for officers, directors, and managers can affect exemption eligibility.

• Audit Preparedness: The DOR can audit aircraft transactions up to three years after the sale, so meticulous records are essential.

Why Compliance Matters

The Florida DOR actively audits aircraft transactions because they often involve large purchase prices, making them attractive targets for assessment. A single oversight, like a late removal date or incomplete affidavit, can lead to owing both tax and penalties equal to the tax amount itself.

Bottom Line

An aircraft purchase in Florida can be smooth sailing—or a costly storm—depending on how well you navigate the tax rules. By planning ahead, securing the right documentation, and aligning your operational steps with tax law requirements, you can avoid turbulence.

At Kamish & Associates, we help clients—both individuals and businesses—structure aircraft purchases to minimize tax risk and maximize compliance. If you’re considering buying or selling an aircraft, let’s talk before takeoff.