NBAA Promises to Continue Tax Reform Efforts in Florida

June 15, 2014

Efforts to obtain a sales/use tax exemption for general aviation aircraft in Florida fell short during the last legislative session, but Scott O’Brien, NBAA senior manager for finance and tax policy, said the Association would continue to work with the Florida Aviation Business Association (FABA) and other stakeholders to make the tax exemption a reality.

O’Brien made these remarks at FABA’s recent 69th annual conference in Orlando, an event that NBAA officials participate in each year as part of the Association’s efforts to support regional business aviation groups.

“Due to the challenging political climate in Florida, the exemption effort was not successful this year, but NBAA plans to work closely with FABA in the coming months to form a stronger coalition and again push for the exemption in the next legislative session,” O’Brien said. “Florida can emulate the success in New York, which approved a similar sales/use tax exemption this year after we helped form a strong coalition and described how the exemption would lead to job creation and economic development.”

O’Brien, who participated in a panel discussion on the state of the industry, updated attendees on current federal excise tax issues and other NBAA policy priorities. He noted that the Association is working to reverse an IRS enforcement policy in which the agency assesses the commercial ticket tax on Part 91 flights for which the aircraft owner uses an aircraft management company. NBAA recently met with Treasury Department officials to discuss this topic and is also pursuing a legislative strategy to obtain relief, O’Brien said.

The FABA conference, which took place on June 8 and 9, drew more than 115 attendees, a 40-percent increase from last year. To boost industry collaboration, FABA officials invited all Florida aviation groups to have a booth at this year’s conference. The Florida Airports Council, the South Florida Business Aviation Association and the Tampa Bay Aviation Association were among the organizations that attended.

“The growing interest in our conference is an encouraging sign that our industry is coming together to promote the betterment of business aviation in Florida,” said Jenny Showalter, FABA executive director. “We look forward to working with NBAA and our regional partners to advance the sales/use tax exemption legislation and other important initiatives.”