Florida Expands Exemptions for Aircraft Manufacturing and Repair Equipment

Thursday, April 12th, 2012


On March 28, Florida Governor Rick Scott signed into law "economic development" legislation that affects several tax programs. 2012 Fla. Laws ch. 32. In addition to establishing a "Back to School" sales tax holiday (reported on here), the act, known as House Bill 7087 (HB 7087), expands the sales tax exemption for equipment used in aircraft manufacturing and repair.

HB 7087 expands the sales tax exemptions for labor, parts, and equipment used in repairs of certain aircraft found in Fla. Stat. sec. 212.08(7)(ee), (7)(rr). The act also adds a new provision exempting chemicals, machinery, parts, and equipment used to manufacture, produce, or modify aircraft and gas turbine engines and parts from sales and use tax.

Also, HB 7087 affects two other sales tax exemptions. The act expands the sales tax exemption for electricity used for processing of agricultural products on the farm to also exempt electricity used by packinghouses. See Fla. Stat. sec. 212.08(5)(e). To help clarify this change, the act includes a definition of "packinghouse." And, HB 7087 creates a sales tax exemption for accessible taxicabs, as well as defines the term "accessible taxicab." The effective date for these sales tax amendments is January 1, 2013.

Ultimately, the sales tax changes are but a portion of the tax law changes contained in HB 7087. Among other revisions, the act increases the amount of income that is exempt from the corporate income tax and increases the amount of income that is exempt from the franchise tax imposed on banks and savings associations. See the Governor's announcement here.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Sales Tax Does Not Apply to Carryout Bag Fees in New York

Wednesday, October 24th, 2018 -The New York State Department of Taxation and Finance recently released a ruling determining that sales tax do...

Texas Releases Detailed Guidance on Exempt Organizations

Thursday, October 18th, 2018 -The Texas Comptroller has released a publication that provides detailed information on how sales and use tax a...

Telephone Answering Services Taxable in Arkansas

Tuesday, October 16th, 2018 -The Arkansas Department of Finance and Administration recently ruled that the service of answering calls on be...

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...