Would Florida sales or use tax apply when the aircraft-owning S corporation domesticated to Florida?

Plain-English summary

The S corporation could domesticate to Florida without incurring Florida sales or use tax on its aircraft.

The corporation had owned the aircraft for eight years, and the aircraft had been purchased, registered, and used outside Florida for far longer than six months. Florida law presumes that tangible property used in another U.S. jurisdiction for at least six months before importation was not purchased for Florida use.

On those facts, bringing the aircraft into Florida as part of the corporation's domestication did not trigger tax. The ruling also notes that rentals or leases of aircraft used or stored in Florida are taxable regardless of prior out-of-state use.

What this means for you

The six-month rule is a purchase-intent presumption supported here by a long, documented out-of-state history. The ruling did not depend on tax actually having been charged by the other state; the aircraft's original purchase had qualified for an exemption there.

Common questions

Did corporate domestication trigger Florida tax on the aircraft? No, under the facts presented.

Why did the aircraft qualify? It had been purchased and used outside Florida for more than six months before importation.

Did the aircraft change owners? The request stated that domestication would not transfer ownership.

Would the same rule exempt an aircraft rental or lease? No. The advisement quotes the rule that an aircraft rental or lease used or stored in Florida is taxable regardless of prior use or tax paid elsewhere.

Citations and references

• Fla. Stat. § 212.05(1)(b).
• Fla. Stat. § 212.06(4) and (8)(a).
• Fla. Admin. Code r. 12A-1.007(2)(a).

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 23A-020

Original ruling text

QUESTION:

Whether Florida sales and/or use tax is due on aircraft
, which is owned
by a
S Corporation, if the
S
Corporation were to domesticate the corporation to Florida?

ANSWER:

Based on the facts provided, Florida sales and/or use tax is not due on aircraft
, which is owned by a
S Corporation, if the
S Corporation were to domesticate the corporation to
Florida.
November 9, 2023

Re:

Dear

Technical Assistance Advisement – TAA #: 23A-020
(“Owner”)
Sales and Use Tax – Aircraft
Section(s)
212.05 and 212.06, Florida Statutes - (“F.S.”)
Rule(s)
12A-1.007, Florida Administrative Code - (“F.A.C.”)
BP #:
(“Corporation”)
:

This is in response to your letter dated
, requesting this Department’s issuance of a
Technical Assistance Advisement (“TAA”) pursuant to Section(s.) 213.22, F.S., and Rule Chapter 1211 F.A.C, Florida Administrative Code, regarding the matter discussed below. Your request has been
carefully examined, and the Department finds it to be in compliance with the requisite criteria set
forth in Chapter 12-11, F.A.C. This response to your request constitutes a TAA and is issued to you
under the authority of s. 213.22, F.S.
REQUESTED ADVISEMENT
Whether Florida sales and/or use tax is due on aircraft
S Corporation, if the
corporation to Florida?

, which is owned by a
S Corporation were to domesticate the

Technical Assistance Advisement
November 9, 2023
Page 2

FACTS
Your request provides that you currently have a
S Corporation that you
would like to domesticate to Florida. You state that some of the advantages include keeping your
current Federal Tax Identification (ID). With regard to the sales and use taxing statutes, it is your
understanding that since there would be no transfer of ownership of the airplane and the airplane
has been owned by the corporation for eight years there should be no sales tax.
To support your position, you reference Rule 12A-1.007(2)(a), F.A.C., stating that an aircraft
purchased and used in another state for a period of more than six months prior to being imported
into Florida, subjecting the airplane to the tax jurisdiction of another state, is exempt from sales and
use tax.
When Owner originally purchased the aircraft, he was a
resident. At that time the aircraft
was subject to tax in
; however,
grants an exemption from sales
tax for
; therefore, no sales tax was imposed. Eight years
ago, the aircraft was transferred to the Corporation, of which Owner is the sole shareholder.
LAW AND DISCUSSION
Section 212.05(1)(b), F.S., provides that the “use, consumption, distribution, or storage for use and
consumption” of tangible personal property in Florida is a taxable privilege, and levies a tax at the
rate of six percent (6%) on each taxable transaction. The use tax is specifically applicable to all articles
of tangible personal property “imported or caused to be imported” into Florida from outside the
state. See s. 212.06(4) and (8)(a), F.S. The Department’s rules make it clear that the tax applies to any
tangible personal property used, consumed, distributed, or stored for use or consumption in Florida
that was purchased in such a manner that the sales tax was not applicable at the time of purchase.
See Rules 12A-1.007(1) – (3) and 12A-1.091(1), F.A.C.
The use tax in Florida is levied upon the “cost price as of the moment of purchase, or ... the cost price
as of the moment of commingling with the general mass of property in this state, ….” See s.
212.06(1)(a), F.S. This tax is collected from a “dealer,” which is defined to include any person who
imports or causes to be imported tangible personal property from outside Florida, as well as any
person who cannot prove that the tax levied by Chapter 212, F.S., has been paid. See s. 212.06(2)(b)
and (d), F.S.
Section 212.06(4) and (8)(a), F.S., specifically provide that use tax applies to tangible personal
property imported or caused to be imported into Florida. Section 212.06(8)(a), F.S., continues by
stating that “… it shall be presumed that tangible personal property used in another state, territory
of the United States, or the District of Columbia for 6 months or longer before being imported into
this state was not purchased for use in this state.…” Thus, upon a showing that tangible personal
property was used for six months or longer within a United States jurisdiction, a presumption arises
that such property was not purchased for use in Florida and is, accordingly, not subject to tax (i.e., a
presumption arises that the property is excluded or exempted from tax).

Technical Assistance Advisement
November 9, 2023
Page 3

Rule 12A-1.007(2)(a), F.A.C., provides, in part “… However, the rental or lease of any aircraft … which
is used or stored in this state is taxable without regard to its prior use or tax paid on the purchase
outside this state.”
Based upon the facts presented and review of the Certificate of Aircraft Registration, aircraft
was registered with the Federal Aviation Administration (FAA) on
. The aircraft was
registered to
., in
.
Pursuant to the provisions of s. 212.06(4) and (8), F.S., and Rule 12A-1.007(2)(a), F.A.C., the aircraft
will not be subject to sales and/or use tax at the time of importation into Florida, as the aircraft was
purchased and used outside Florida for six months or longer.
CONCLUSION
Based on the facts provided, Florida sales and/or use tax is not due on aircraft
, which is
owned by a
S Corporation, if the
S Corporation were
to domesticate the corporation in Florida.
This response constitutes a TAA under s. 213.22, F.S., which is binding on the Department only under
the facts and circumstances described in the request for this advice, as specified in s. 213.22, F.S. Our
response is predicated on those facts and the specific situation summarized above. You are advised
that subsequent statutory or administrative rule changes, or judicial interpretations of the statutes
or rules, upon which this advice is based, may subject similar future transactions to a different
treatment than expressed in this response.
You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions of s.
213.22, F.S. Confidential information must be deleted before public disclosure. In an effort to protect
confidentiality, we request you provide the undersigned with an edited copy of your request for TAA,
the backup material and this response, deleting names, addresses and any other details which might
lead to identification of the Taxpayer. Your response should be received by the Department within
ten (10) days of the date of this letter.
If you have any further questions with regard to this matter and wish to discuss them, you may
contact me directly at (850)717-6701.
Sincerely,

Shundra McClean
Shundra McClean
Tax Law Specialist
Technical Assistance & Dispute Resolution
Record ID: 7000974090

Technical Assistance Advisement
November 9, 2023
Page 4

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