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Florida Considers Extending Tax Exemptions on Aircraft Maintenance

January 24. 2012

Florida lawmakers are deliberating legislation to extend sales tax exemptions on parts and labor involved in aircraft repairs, a move proponents say would “level the playing field” in an increasingly competitive market, and spur job creation throughout the Sunshine State.

Senate Bill 1384 was introduced by Senator Mike Bennett (R-District 21) on January 12, with concurrent legislation H.B. 1213 brought to the House floor by Rep. Steve Crisafulli (R-Merritt Island) on the same date. If approved, those measures would exempt maintenance on aircraft with a maximum takeoff weight over 2,000 pounds from state sales and use taxes.

If enacted, the new legislation would go into effect July 1, making Florida the 32nd state to adopt at least partial exemptions for parts and services related to the maintenance of general aviation aircraft.

“The proposed legislation is additional evidence that Florida lawmakers recognize the economic importance of general aviation to their state,” said NBAA President and CEO Ed Bolen.

The bills are the result of an effort by the Florida Aviation Trades Association (FATA) and other aviation advocacy groups to extend existing tax exemptions on aircraft maintenance, which applied only to aircraft with maximum takeoff weights over 15,000 pounds. Reducing that threshold to just 2,000 pounds would mean that almost all general aviation and business aircraft would benefit from lower repair bills.

“Florida is losing aircraft maintenance and repair business to other states every day because we haven't remained competitive in our tax statutes,” said Senator Bennett. “My bill will level the playing field and create jobs for Floridians, while also encouraging aircraft owners to visit Florida's world-class aviation maintenance and repair facilities.”

The proposed tax exemption follows previous legislation that eased use tax restrictions for non-resident owners of aircraft staying in Florida for a reasonable period. Harry Houckes, NBAA Southeast Regional Representative, said the latest proposal was another step in the right direction.

“I'm encouraged to see positive legislation proposed in Florida that recognizes the value of general aviation, plus the businesses that support the industry and the jobs they create,” Houckes said. “Farsighted action like this will help to maintain and retain a robust aviation support industry in the state.”

The Senate bill has been referred to the state's Transportation Committee, which at this writing is scheduled to review the legislation on Thursday, January 26.