Purchasing a private aircraft is a significant investment, and for Florida-based owners, one of the most critical financial considerations is sales and use tax. Without proper planning, buyers may face unexpected tax liabilities that add hundreds of thousands of dollars to the cost of ownership.
At AVTax Advisors, we guide high-net-worth individuals and businesses through sales tax exemption planning to ensure compliance while minimizing unnecessary tax exposure.
Why Sales Tax Planning Matters in Florida
Florida imposes taxes in the following manner:
- A 6% sales and use tax on aircraft purchases
- Additional county surtaxes in some areas
- Even if an aircraft is purchased outside of Florida, the state’s use tax rules may still apply if the aircraft is flown into Florida within six months of acquisition
For a multimillion-dollar aircraft, this liability can be substantial.
Because Florida is one of the nation’s busiest states for private aviation, the Department of Revenue closely monitors aircraft purchases and aggressively enforces its tax laws. Without proactive exemption planning, buyers may face audits, penalties, and unexpected tax bills.
Common Florida Aircraft Sales Tax Exemptions
Florida law provides several exemptions that, if properly applied, can help reduce or eliminate sales and use tax on aircraft purchases. The key is knowing which exemptions apply and how to document them.
Fly-Away Exemption
Aircraft purchased in Florida can qualify for a sales tax exemption if they are removed from the state within 10 days of purchase. However, even a short flight within Florida before leaving can disqualify the exemption. Proper planning of delivery and flight itineraries is essential.
Export Exemption
If an aircraft is purchased in Florida for immediate export outside of the United States, it may qualify for a tax exemption. Documentation must prove that the aircraft was exported promptly and did not remain in Florida for extended use.
Commercial Use Exemption
Aircraft used exclusively for commercial purposes, such as those conducting charter operations under Part 135, may be exempt from Florida sales tax. However, the exemption requires strict adherence to FAA operational standards and supporting business documentation.
Resale Exemption
If a dealer purchases an aircraft for resale, sales tax may not apply. This exemption is commonly used by aircraft brokers or companies that buy and sell aircraft as part of their business.
Non-Resident Exemption
Non-resident buyers may qualify for an exemption if the aircraft remains in Florida for less than 20 days during the first six months of ownership. Again, meticulous recordkeeping and proof of non-residency are required.
How AVTax Advisors Helps
The key to leveraging these exemptions is planning ahead. At AVTax Advisors, PLLC, we provide comprehensive guidance at every stage of the aircraft acquisition process:
- Pre-Purchase Planning: We review your intended use, ownership structure, and residency to determine which exemptions may apply.
- Entity Formation: We help establish the correct ownership entity (LLC, corporation, or trust) to align with tax and liability strategies.
- Documentation Support: Exemptions are only effective if backed by detailed, accurate records. We ensure purchase agreements, flight logs, and export certificates are properly prepared.
- Audit Defense: If the Florida Department of Revenue challenges your exemption claim, we represent you throughout the audit process to protect your interests.
Our goal is to reduce your tax exposure without increasing your risk of non-compliance.
Common Pitfalls to Avoid
Many aircraft buyers unintentionally disqualify themselves from exemptions due to simple mistakes. Some of the most frequent issues include:
- Flying the aircraft within Florida before removal under the fly-away exemption
- Failing to prove export timelines for international sales
- Assuming business use automatically qualifies as commercial use
- Relying on incomplete or generic purchase agreements
- Not tracking residency or flight days accurately for the non-resident exemption
These mistakes can easily result in six- or seven-figure tax bills. With proactive planning, they can often be avoided.
Florida-Specific Considerations
Because Florida aggressively audits aircraft transactions, exemption planning must account for both legal requirements and practical realities. The state has a history of scrutinizing transactions to challenge exemption claims, including:
- Ownership structures
- Delivery locations
- Maintenance records
Buyers should assume that any exemption taken will be reviewed and prepare accordingly.
At AVTax Advisors, PLLC, we understand not just the letter of Florida’s tax laws, but how they are enforced in practice. Our aviation-specific focus gives clients a critical advantage when navigating these high-stakes transactions.
Protect Your Investment with Smart Sales Tax Planning
Purchasing an aircraft is more than a financial decision; it’s a complex legal and tax event that requires precision and foresight. With millions of dollars at stake, high-net-worth individuals and businesses cannot afford to rely on general tax advisors who lack expertise in aviation.
At AVTax Advisors, PLLC, we provide tailored, Florida-focused counsel to ensure you maximize available sales tax exemptions while staying compliant with state and federal requirements. From planning your purchase strategy to defending exemption claims during audits, we are your trusted partner in aviation tax law.
Planning to purchase an aircraft in Florida? Contact AVTax Advisors today to protect your investment with proven sales tax exemption strategies.