Did the nonresident operator owe Florida use tax on aircraft and installed upgrades brought into the state exclusively for flight training and modifications?

Plain-English summary

The nonresident operator's aircraft and associated installed upgrades were exempt from Florida use tax while in the state for the documented purposes.

The operator and its related entities were organized outside Florida, with no Florida-resident owners or officers. The aircraft entered and remained in Florida exclusively for contracted flight training and for repairs, alterations, refitting, or modifications.

The Department interpreted "flight training" broadly enough to cover the operator's adversary-air training services, which included preflight mission instruction, airborne training, and postflight debriefing. Written contracts and enhancement documentation supported the use.

What this means for you

The nonresident-aircraft exemption depends on exclusive use and written records. The aircraft cannot simply be present in Florida for general business or personal use while also receiving training or modifications.

Common questions

Were the aircraft subject to Florida use tax? No, under the documented facts.

Did the training have to be basic pilot instruction? No. The Department treated the described operational air training as flight training under the statute.

Were installed upgrades covered? Yes. The ruling included associated upgrades and installed equipment used with the aircraft.

What documentation mattered? The training contracts, aircraft-enhancement records, and other documents showing the aircraft's exclusive qualifying purpose in Florida.

Citations and references

• Fla. Stat. §§ 212.05 and 212.06.
• Fla. Stat. § 212.08(7)(fff)2.
• Fla. Admin. Code r. 12A-1.007.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 23A-011

Original ruling text

QUESTION:
You request confirmation that Taxpayer’s use of the aircraft and installed equipment in Florida are
exempt from Florida sales and use tax under the nonresident exemption for flight training pursuant
to s. 212.08(7)(fff)2., F.S.
ANSWER:
Based upon review of the documentation and information provided: (1) the Taxpayer is a
nonresident; (2) Taxpayer’s aircraft will enter and remain in Florida exclusively for purposes of flight
training under contract with the
and for repairs, alterations, refitting, and/or modifications; and
(3) Taxpayer’s use of the aircraft and installed equipment in Florida qualifies for the exemption
provided in s. 212.08(7)(fff), F.S.

June 5, 2023

Via Email:
Re:

Dear

Technical Assistance Advisement – TAA 23A-011
. (“Taxpayer”)
Sales and Use Tax – Aircraft/Flight Training/Modifications
Sections 212.02, 212.05, 212.054, 212.06, and 212.08, Florida Statutes - (“F.S.”)
Rule 12A-1.007, Florida Administrative Code - (“F.A.C.”)
BP #:
:

This is in response to your letter dated October 24, 2022, 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.

Technical Assistance Advisement
June 5, 2023
Page 2

REQUESTED ADVISEMENT
You request confirmation that the use of the aircraft and installed equipment in Florida are exempt
from Florida sales and use tax under the nonresident exemption for flight training pursuant to Section
212.08(7)(fff)2., F.S.
FACTS
Your request provides in part:
The undersigned represents [Taxpayer]. Taxpayer’s mailing address is
. Taxpayer’s FEIN is
. Taxpayer is not currently under audit nor
is the issue involved in a return of the Taxpayer. To the best of Taxpayer’s knowledge, there
are no contrary authorities known. The purpose of this request is to obtain a [TAA] from the
Florida Department of Revenue [Department].

Taxpayer is a
for-profit corporation but is based in
. Taxpayer is one
hundred percent (100%) owned by another entity,
. (“Entity A”),
which is a
entity. Entity A is one hundred percent (100%) owned by another entity,
. (“Entity B”), which is a
entity. Finally, Entity B is one hundred percent
(100%) owned by another entity,
. (“Entity C”), which is a
entity. None of the corporate owners or officers of Taxpayer are Florida residents. Taxpayer
does not maintain its chief or principal office in Florida.
Taxpayer engages in the flight training services business. Taxpayer owns various types of
aircraft that have been in
since purchase. The aircraft were acquired more than six
(6) months ago and have had various upgrades made to make the aircraft more
– e.g., state of-the-art radar and other current technologies. No
sales or use tax was
paid on the acquisition of the aircraft, but rather
offered an exemption from tax.
Thus, Taxpayer subjected itself to the taxing jurisdiction of
.
Taxpayer intends on bringing its aircraft to Florida. Taxpayer’s use of the aircraft in Florida
will be strictly for flight training services and will solely be at
for this
purpose when in Florida. Taxpayer’s pilots will use their aircraft to teach
pilots air combat and help the same to refine their skills, much like
. Taxpayer uses its aircraft as an “enemy force.” Specifically, Taxpayer flies the
aircraft as if it were an enemy combatant. The
pilots then engage the enemy force in
order to “neutralize” the aircraft or else be “neutralized” themselves. The
pilots use
their own aircraft.
As it pertains to Taxpayer’s flight training, the
pilots are provided the training goals,
strategies, and maneuvers that need to be planned before the training flight. The student

Technical Assistance Advisement
June 5, 2023
Page 3

pilots are briefed on mission objectives, air strategy, and best practices prior to taking
to the air. This level of detail discussed with the student
pilots enumerates the altitude
needed, bearing to be taken, and other aspects of the flight. In essence, the student
pilots are told everything about the flight they need to know in advance to maximize success
for the flight training. After the flight, student
pilots are brought down into a group
setting on the ground to debrief and discuss the outcome of the mission – success or failure.
A discussion is held with the student
pilots to review their mistakes and teach them
what to do in the future so as to learn, practice and train better, and survive an enemy
encounter.
TAXPAYER POSITION
Generally, use tax is imposed on the cost price at the moment of commingling with the
general mass property in Florida, use, consumption, distribution, or storage for use or
consumption of tangible personal property in Florida. Section 212.06(1)(a), F.S. “Tangible
personal property” includes aircraft. Section 212.02(19), F.S. Therefore, aircraft that are
commingled with the mass property of Florida, used, consumed, distributed, or stored for
use or consumption in Florida are subject to use tax. However, there are certain exemptions
from use tax. One exemption from use tax is for aircraft owned by a nonresident that enters
and remains in Florida exclusively for flight training. Section 212.08(7)(fff)2., F.S.
Here, Taxpayer is not a Florida resident, as Taxpayer is a
entity. Attached to this
request is Exhibit E, which is Tax Information Publication 10A01-11R (“TIP”). In this TIP, the
Department clearly states a “nonresident corporation means a corporation incorporated
under the laws of another state…, which does not maintain its chief or principal office in this
state.” Here, Taxpayer is a corporation incorporated under the laws of
. Taxpayer’s
chief or principal office is outside of Florida in
. Thus, and based upon the
Department’s own TIP, Taxpayer is a “nonresident” for purposes of the exemption. Even if
the Department were to “look through” to Entity A, Entity B, and Entity C, none of these
entities are Florida entities. Furthermore, none of the officers of any of these entities are
Florida residents. For these reasons, Taxpayer is not a Florida resident.
The aircraft at issue are coming solely to Florida for flight training purposes. Flight training
is broad and unequivocally captures more than just learning to be a pilot. Flight training can
and does capture Taxpayer’s business model of providing flight training to
pilots to
survive an encounter with an enemy force.
Attached to this request are Exhibits A[1], B[2], and D[3] which are the various documents
constituting the contracts with the
. On page 56 of Exhibit D in paragraph L-1.3, the
1 “Order for Supplies or Services”

) for

2 “Performance Work Statement (PWS)” -

PERFORMANCE WORK STATEMENT (PWS). A document that accurately describes essential and technical requirements for items,
materials, or services, including the standards used to determine whether requirements have been met.
3 “Solicitation, Offer and Award”
)–

Technical Assistance Advisement
June 5, 2023
Page 4

requires Taxpayer’s [North American Industry Classification System (NAICS)] code and
services be performed under 611512, which is described as aviation and flight training. The
same document on page 17 describes the services to be provided, as delineated above. This
page also incorporates by reference Exhibit B, the Performance Work Statement. In Exhibit
B and on pages 3, 4, and 5, the Taxpayer’s services are further defined and recapped –
namely for Taxpayer to provide its aircraft as an enemy combatant force and provide
trainings/briefings regarding the same. Lastly, Exhibit A also describes the aforementioned
activities, especially on page 8.
Thus, the terms of the very documentation with the
spells out the services as that of
flight training. Furthermore, the pre-flight, flight, and post-flight aspects of the training
cover exactly the undertones of the exemption – to provide flight training. The context
Taxpayer provides is that of a
context. The exemption does not limit the exemption
to private aircraft usage or prohibit the training of
pilots. Because of the broad
nature of the exemption, Taxpayer’s services constitute flight training as contemplated by
the statute.
Since Taxpayer is not a resident of Florida and the aircraft are in Florida exclusively for the
purpose of flight training, the use of the aircraft and associated upgrades in Florida is
exempt from use tax. In further support of the aforementioned, Taxpayer received an LTA
from the Department agreeing the use of the aircraft in Florida is exempt from Florida sales
and use tax. The LTA response is attached as Exhibit C[4].
CONCLUSION
Taxpayer’s use of the aircraft, and the associated upgrades, in Florida is exempt from use
tax, as Taxpayer is a nonresident having aircraft in Florida exclusively for flight training
purposes.
LAW AND DISCUSSION
Sections 212.05 and 212.06, F.S., specifically impose sales or use tax on the sale, use, storage, or
consumption of tangible personal property in this State. See ss. 212.05(1) and 212.06(1), F.S. For
exercising either privilege, tax is imposed at the rate of 6%, plus any county-imposed surtax. See ss.
212.05(1)(a)1.a., 212.06(1)(a), and 212.054, F.S. Tangible personal property is defined as “personal
property which may be seen, weighed, measured, or touched or is in any manner perceptible to the
senses, including … aircraft ….” See s. 212.02(19), F.S. Therefore, the use of Taxpayer’s aircraft in
Florida is subject to tax, unless an exemption applies.
The use tax in Florida is levied on the cost price at the moment of purchase or the cost price as of the
moment of commingling with the general mass of property in this state. The use tax is due from a
“dealer” which includes any person who imports or causes to be imported tangible personal property
from outside Florida. See s. 212.06(1)(a) and (2)(b), F.S.

4 LTA #

Technical Assistance Advisement
June 5, 2023
Page 5

Section 212.06(4) F.S., specifically provides that use tax applies to tangible personal property
imported or caused to be imported into Florida. It is presumed that tangible personal property,
including aircraft, used in another state, territory of the United States, or the District of Columbia for
6 months or longer that gave rise to that taxing authority, was not purchased for use in Florida and
would therefore, not be subject to use tax. See s. 212.06(8)(a), F.S.
An exemption is provided under s. 212.08(7)(fff)2., F.S., which states in part:
An aircraft owned by a nonresident is exempt from the use tax imposed under this
chapter if the aircraft enters or remains in this state exclusively for purposes of flight
training, repairs, alterations, refitting, or modification. Such purposes shall be
supported by written documentation issued by in-state vendors or suppliers which
clearly and specifically identifies the aircraft….
In this case, Taxpayer is a contractor, currently registered with the Department for Reemployment
Tax purposes. You state that Taxpayer and its related entities are out-of-state entities, with no owners
and officers who are Florida residents based on the definition of “nonresident corporation” as
provided in TIP #10A01-11R. You further state that Taxpayer owns various aircraft that have been in
for more than six (6) months. While in
, you state that Taxpayer had various upgrades
performed to the aircraft. Upon acquiring the aircraft, Taxpayer subjected itself to the taxing laws of
; however, no sales or use tax was paid on the aircraft, as
offered a tax-exemption. It
is your opinion that as a nonresident of Florida, Taxpayer’s use of the aircraft and associated upgrades
for flight training purposes in Florida qualifies for the exemption provided in s. 212.08(7)(fff), F.S.
Exhibit A - Order for Supplies or Services Section C – provides the
“Description/Specifications/Statement of Work.” The relevant part states that “[Taxpayer] will
provide Adversary Air Support Services to
. Additional support may be provided to
[5]
6
as well as (
) TDY Support as defined in the PWS and Master PWS.” [See page 8 of 20]
Exhibit B does not address the significance of the modifications performed on the aircraft. However,
as suggested by the language in Exhibit D, paragraph L-7.6, Offerors are required to include a
signed/certified “
,” as
provided in Section L, Attachment 3, for each proposed enhancement on each aircraft. Furthermore,
paragraph L-7.9.4 Subfactor D, addresses aircraft enhancements and requires Offerors to provide
details of proposed aircraft avionics enhancements timelines such as, but not limited to: logistics
(supplies) deliveries, prime or third party (e.g. – subcontractor) installations; required testing; and
aircraft avionics enhancement delivery to reach full operational capability that best meets targeted
milestones indicated in Appendix I.

5
6 Temporary Duty

Technical Assistance Advisement
June 5, 2023
Page 6

CONCLUSION
Based upon review of the documentation and information provided: (1) the Taxpayer is a
nonresident; (2) Taxpayer’s aircraft will enter and remain in Florida exclusively for purposes of flight
training under contract with the
and for repairs, alterations, refitting, and/or modifications; and
(3) Taxpayer’s use of the aircraft and installed equipment in Florida qualifies for the exemption
provided in s. 212.08(7)(fff), F.S.
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
(850)717-6701
Record ID: 7000854607
cc:

Technical Assistance Advisement
June 5, 2023
Page 7

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