GL: FLORIDA OFFICIALS HOPING FOR RESOLUTION OF AIRCRAFT TAX PROBLEM

[Ralph Yost]

The story below is analogous to boaters who travel to FLA, relocate
there or simply want to avoid paying the tax due (which we hear on this
list often).
R.


FLORIDA OFFICIALS HOPING FOR RESOLUTION OF AIRCRAFT TAX PROBLEM

		 --Officials of the Florida Aviation Trades Association
(FATA) expressed cautious optimism last week
that state legislators would take action to resolve a situation that has
left unsuspecting pilots with
huge tax bills after visiting the state.
		 The problem involves action by the Florida Department
of Revenue (FDOR) to attempt to collect a six
percent use tax on new aircraft sales. Buyers of aircraft registered in
the state must pay the tax, but
Florida officials concluded that some aircraft that were purchased by
Florida residents were being registered
or based in other states to avoid those taxes. As a result, out-of-state
owners of newly purchased aircraft
who visited Florida within the first six months after purchase began
receiving bills for thousands of
dollars from FDOR, even if the aircraft was only in the state for a
brief period. Some of those hit by
the unexpected tax bills had flown their airplanes to Florida
specifically for pilot training, while
other simply made vacation or business trips to the state.
		 FATA has been trying to get state officials to clarify
their position and to keep concerns about FODR
collection efforts from dissuading aircraft owners from visiting
Florida. The FDOR sent out a message
Friday stating that the focus of its use tax enforcement activities "is
on aircraft with a significant
connection to Florida (such as Florida resident, ownership of Florida
real estate, officer in a Florida
corporation, etc." FDOR also declared that it "does not conduct 'ramp
checks' in search of tax violators."
The agency added that it "will not be at" the April 8-14 Sun 'n Fun
Fly-In in Lakeland and said it "does
not use similar 'fly-ins' as enforcement opportunities."
		 FATA officials are hoping for passage of legislation
pending before the legislature to clarify the issue.
One bill under consideration would give new out-of-state aircraft buyers
a 21-day "window" to visit the
state with their new aircraft during the first six months of ownership
without incurring liability for
the six percent use tax.