Florida Senate - 2019 SB 580 By Senator Bean 4-00858A-19 2019580__ 1 A bill to be entitled 2 An act relating to the taxation of aircraft sales and 3 leases; amending s. 212.05, F.S.; decreasing the sales 4 tax rate on aircraft sales and leases; amending s. 5 212.08, F.S.; decreasing the maximum applicable sales 6 tax rate under the flyable aircraft partial sales tax 7 exemption; providing an effective date. 8 9 Be It Enacted by the Legislature of the State of Florida: 10 11 Section 1. Paragraph (a) of subsection (1) of section 12 212.05, Florida Statutes, is amended to read: 13 212.05 Sales, storage, use tax.—It is hereby declared to be 14 the legislative intent that every person is exercising a taxable 15 privilege who engages in the business of selling tangible 16 personal property at retail in this state, including the 17 business of making mail order sales, or who rents or furnishes 18 any of the things or services taxable under this chapter, or who 19 stores for use or consumption in this state any item or article 20 of tangible personal property as defined herein and who leases 21 or rents such property within the state. 22 (1) For the exercise of such privilege, a tax is levied on 23 each taxable transaction or incident, which tax is due and 24 payable as follows: 25 (a)1.a. At the rate of 6 percent of the sales price of each 26 item or article of tangible personal property when sold at 27 retail in this state, computed on each taxable sale for the 28 purpose of remitting the amount of tax due the state, and 29 including each and every retail sale; except that a sale or 30 lease of an aircraft is subject to tax at the rate of 4 percent. 31 b. Each occasional or isolated sale of an aircraft, boat, 32 mobile home, or motor vehicle of a class or type which is 33 required to be registered, licensed, titled, or documented in 34 this state or by the United States Government shall be subject 35 to tax at the rate provided in this paragraph. The department 36 shall by rule adopt any nationally recognized publication for 37 valuation of used motor vehicles as the reference price list for 38 any used motor vehicle which is required to be licensed pursuant 39 to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any 40 party to an occasional or isolated sale of such a vehicle 41 reports to the tax collector a sales price which is less than 80 42 percent of the average loan price for the specified model and 43 year of such vehicle as listed in the most recent reference 44 price list, the tax levied under this paragraph shall be 45 computed by the department on such average loan price unless the 46 parties to the sale have provided to the tax collector an 47 affidavit signed by each party, or other substantial proof, 48 stating the actual sales price. Any party to such sale who 49 reports a sales price less than the actual sales price is guilty 50 of a misdemeanor of the first degree, punishable as provided in 51 s. 775.082 or s. 775.083. The department shall collect or 52 attempt to collect from such party any delinquent sales taxes. 53 In addition, such party shall pay any tax due and any penalty 54 and interest assessed plus a penalty equal to twice the amount 55 of the additional tax owed. Notwithstanding any other provision 56 of law, the Department of Revenue may waive or compromise any 57 penalty imposed pursuant to this subparagraph. 58 2. This paragraph does not apply to the sale of a boat or 59 aircraft by or through a registered dealer under this chapter to 60 a purchaser who, at the time of taking delivery, is a 61 nonresident of this state, does not make his or her permanent 62 place of abode in this state, and is not engaged in carrying on 63 in this state any employment, trade, business, or profession in 64 which the boat or aircraft will be used in this state, or is a 65 corporation none of the officers or directors of which is a 66 resident of, or makes his or her permanent place of abode in, 67 this state, or is a noncorporate entity that has no individual 68 vested with authority to participate in the management, 69 direction, or control of the entity’s affairs who is a resident 70 of, or makes his or her permanent abode in, this state. For 71 purposes of this exemption, either a registered dealer acting on 72 his or her own behalf as seller, a registered dealer acting as 73 broker on behalf of a seller, or a registered dealer acting as 74 broker on behalf of the purchaser may be deemed to be the 75 selling dealer. This exemption shall not be allowed unless: 76 a. The purchaser removes a qualifying boat, as described in 77 sub-subparagraph f., from the state within 90 days after the 78 date of purchase or extension, or the purchaser removes a 79 nonqualifying boat or an aircraft from this state within 10 days 80 after the date of purchase or, when the boat or aircraft is 81 repaired or altered, within 20 days after completion of the 82 repairs or alterations; or if the aircraft will be registered in 83 a foreign jurisdiction and: 84 (I) Application for the aircraft’s registration is properly 85 filed with a civil airworthiness authority of a foreign 86 jurisdiction within 10 days after the date of purchase; 87 (II) The purchaser removes the aircraft from the state to a 88 foreign jurisdiction within 10 days after the date the aircraft 89 is registered by the applicable foreign airworthiness authority; 90 and 91 (III) The aircraft is operated in the state solely to 92 remove it from the state to a foreign jurisdiction. 93 94 For purposes of this sub-subparagraph, the term “foreign 95 jurisdiction” means any jurisdiction outside of the United 96 States or any of its territories; 97 b. The purchaser, within 30 days from the date of 98 departure, provides the department with written proof that the 99 purchaser licensed, registered, titled, or documented the boat 100 or aircraft outside the state. If such written proof is 101 unavailable, within 30 days the purchaser shall provide proof 102 that the purchaser applied for such license, title, 103 registration, or documentation. The purchaser shall forward to 104 the department proof of title, license, registration, or 105 documentation upon receipt; 106 c. The purchaser, within 10 days of removing the boat or 107 aircraft from Florida, furnishes the department with proof of 108 removal in the form of receipts for fuel, dockage, slippage, 109 tie-down, or hangaring from outside of Florida. The information 110 so provided must clearly and specifically identify the boat or 111 aircraft; 112 d. The selling dealer, within 5 days of the date of sale, 113 provides to the department a copy of the sales invoice, closing 114 statement, bills of sale, and the original affidavit signed by 115 the purchaser attesting that he or she has read the provisions 116 of this section; 117 e. The seller makes a copy of the affidavit a part of his 118 or her record for as long as required by s. 213.35; and 119 f. Unless the nonresident purchaser of a boat of 5 net tons 120 of admeasurement or larger intends to remove the boat from this 121 state within 10 days after the date of purchase or when the boat 122 is repaired or altered, within 20 days after completion of the 123 repairs or alterations, the nonresident purchaser applies to the 124 selling dealer for a decal which authorizes 90 days after the 125 date of purchase for removal of the boat. The nonresident 126 purchaser of a qualifying boat may apply to the selling dealer 127 within 60 days after the date of purchase for an extension decal 128 that authorizes the boat to remain in this state for an 129 additional 90 days, but not more than a total of 180 days, 130 before the nonresident purchaser is required to pay the tax 131 imposed by this chapter. The department is authorized to issue 132 decals in advance to dealers. The number of decals issued in 133 advance to a dealer shall be consistent with the volume of the 134 dealer’s past sales of boats which qualify under this sub 135 subparagraph. The selling dealer or his or her agent shall mark 136 and affix the decals to qualifying boats in the manner 137 prescribed by the department, before delivery of the boat. 138 (I) The department is hereby authorized to charge dealers a 139 fee sufficient to recover the costs of decals issued, except the 140 extension decal shall cost $425. 141 (II) The proceeds from the sale of decals will be deposited 142 into the administrative trust fund. 143 (III) Decals shall display information to identify the boat 144 as a qualifying boat under this sub-subparagraph, including, but 145 not limited to, the decal’s date of expiration. 146 (IV) The department is authorized to require dealers who 147 purchase decals to file reports with the department and may 148 prescribe all necessary records by rule. All such records are 149 subject to inspection by the department. 150 (V) Any dealer or his or her agent who issues a decal 151 falsely, fails to affix a decal, mismarks the expiration date of 152 a decal, or fails to properly account for decals will be 153 considered prima facie to have committed a fraudulent act to 154 evade the tax and will be liable for payment of the tax plus a 155 mandatory penalty of 200 percent of the tax, and shall be liable 156 for fine and punishment as provided by law for a conviction of a 157 misdemeanor of the first degree, as provided in s. 775.082 or s. 158 775.083. 159 (VI) Any nonresident purchaser of a boat who removes a 160 decal before permanently removing the boat from the state, or 161 defaces, changes, modifies, or alters a decal in a manner 162 affecting its expiration date before its expiration, or who 163 causes or allows the same to be done by another, will be 164 considered prima facie to have committed a fraudulent act to 165 evade the tax and will be liable for payment of the tax plus a 166 mandatory penalty of 200 percent of the tax, and shall be liable 167 for fine and punishment as provided by law for a conviction of a 168 misdemeanor of the first degree, as provided in s. 775.082 or s. 169 775.083. 170 (VII) The department is authorized to adopt rules necessary 171 to administer and enforce this subparagraph and to publish the 172 necessary forms and instructions. 173 (VIII) The department is hereby authorized to adopt 174 emergency rules pursuant to s. 120.54(4) to administer and 175 enforce the provisions of this subparagraph. 176 177 If the purchaser fails to remove the qualifying boat from this 178 state within the maximum 180 days after purchase or a 179 nonqualifying boat or an aircraft from this state within 10 days 180 after purchase or, when the boat or aircraft is repaired or 181 altered, within 20 days after completion of such repairs or 182 alterations, or permits the boat or aircraft to return to this 183 state within 6 months from the date of departure, except as 184 provided in s. 212.08(7)(fff), or if the purchaser fails to 185 furnish the department with any of the documentation required by 186 this subparagraph within the prescribed time period, the 187 purchaser shall be liable for use tax on the cost price of the 188 boat or aircraft and, in addition thereto, payment of a penalty 189 to the Department of Revenue equal to the tax payable. This 190 penalty shall be in lieu of the penalty imposed by s. 212.12(2). 191 The maximum 180-day period following the sale of a qualifying 192 boat tax-exempt to a nonresident may not be tolled for any 193 reason. 194 Section 2. Subsection (11) of section 212.08, Florida 195 Statutes, is amended to read: 196 212.08 Sales, rental, use, consumption, distribution, and 197 storage tax; specified exemptions.—The sale at retail, the 198 rental, the use, the consumption, the distribution, and the 199 storage to be used or consumed in this state of the following 200 are hereby specifically exempt from the tax imposed by this 201 chapter. 202 (11) PARTIAL EXEMPTION; FLYABLE AIRCRAFT.— 203 (a) The tax imposed on the sale by a manufacturer of 204 flyable aircraft, who designs such aircraft, which sale may 205 include necessary equipment and modifications placed on such 206 flyable aircraft prior to delivery by the manufacturer, shall be 207 an amount equal to the sales tax which would be imposed on such 208 sale under the laws of the state in which the aircraft will be 209 domiciled. 210 (b) This partial exemption applies only if the purchaser is 211 a resident of another state who will not use the aircraft in 212 this state, or if the purchaser is a resident of another state 213 and uses the aircraft in interstate or foreign commerce, or if 214 the purchaser is a resident of a foreign country. 215 (c) The maximum tax collectible under this subsection may 216 not exceed 4
6percent of the sales price of such aircraft. No 217 Florida tax may be imposed on the sale of such aircraft if the 218 state in which the aircraft will be domiciled does not allow 219 Florida sales or use tax to be credited against its sales or use 220 tax. Furthermore, no tax may be imposed on the sale of such 221 aircraft if the state in which the aircraft will be domiciled 222 has enacted a sales and use tax exemption for flyable aircraft 223 or if the aircraft will be domiciled outside the United States. 224 (d) The purchaser shall execute a sworn affidavit attesting 225 that he or she is not a resident of this state and stating where 226 the aircraft will be domiciled. If the aircraft is subsequently 227 used in this state within 6 months of the time of purchase, in 228 violation of the intent of this subsection, the purchaser shall 229 be liable for payment of the full use tax imposed by this 230 chapter and shall be subject to the penalty imposed by s. 231 212.12(2), which penalty shall be mandatory. Notwithstanding the 232 provisions of this paragraph, the owner of an aircraft purchased 233 pursuant to this subsection may permit the aircraft to be 234 returned to this state for repairs within 6 months after the 235 date of sale without the aircraft being in violation of the law 236 and without incurring liability for payment of tax or penalty on 237 the purchase price of the aircraft, so long as the aircraft is 238 removed from this state within 20 days after the completion of 239 the repairs and such removal can be proven by invoices for fuel, 240 tie-down, or hangar charges issued by out-of-state vendors or 241 suppliers or similar documentation. 242 Section 3. This act shall take effect July 1, 2019.