Which flight-school charges were exempt instruction and which were taxable aircraft rentals under Florida's 1993 rules?

Subject

Flight Instruction; Rental of Aircraft

Plain-English summary

Flight instruction was exempt, including classroom time, ground school, preflight and postflight briefings and critiques, and supervised solo flights within the course.

Aircraft rental was taxable. That included a separate aircraft rental needed to take instruction and solo flights performed after the student completed the course, even if those flights logged hours toward a rating or license.

What this means for you

The line was not simply instructor present versus student alone. Supervised solo work included in the course was exempt instruction, while post-course solo aircraft use was a taxable rental.

Common questions

Q: Was supervised solo flight during the course taxable? No.

Q: Was a separately charged aircraft rental taxable? Yes.

Q: Were post-course solo hours exempt because they counted toward a license? No.

Citations and references

• Fla. Stat. § 212.08(7)(v)1 — professional and personal services
• Fla. Admin. Code r. 12A-1.007(14)(a) — aircraft rental
• Fla. Admin. Code r. 12A-1.071(21), (23), (24) — aircraft rental and flight instruction
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 93A-024

Original ruling text

Apr 09, 1993

Re: TAA 93A-024
Sales Tax on Flight Instruction; Rental of Aircraft
Your referral #XXX
Section 212.08(7)(v)1., F.S.
Rules 12A-1.007(14)(a) and 12A-1.071(21)(23)(24), F.A.C.

Dear :

Your letter dated March 24, 1993, requesting a Technical
Assistance Advisement regarding the taxability of flight
instruction and the rental of aircraft, is hereby acknowledged.
This response to your request constitutes a Technical Assistance
Advisement under Chapter 12-11, Florida Administrative Code, and
is issued to you under the authority of s. 213.22, Florida
Statutes.

Your letter states in part:

"XXX) we are requesting a technical assistance advisement
regarding whether or not Florida sales taxes are collected
on the cost of instruction and rental of aircraft for that
instruction at flight schools approved by the XXX. XXX
benefits payments for flight training may include
applicable sales taxes if proper under the state's revenue
code."

REGULATORY AUTHORITY

Section 212.08(7)(v)1., F.S., provides:

"Also exempted are professional, insurance, or personal
service transactions that involve sales as inconsequential
elements for which no separate charges are made."

Rule 12A-1.007(14)(a), F.A.C., provides in pertinent part:

"The rental or lease of an aircraft... which is used or

stored in this state, shall be taxable..."

Rule 12A-1.071(21), (23), (24), F.A.C., provides:

"(21) The rental of aircraft is taxable....
"(23) A charge for flight instruction, which includes
supervised solo flights, is exempt. The purchase of an
aircraft for this use is taxable.
"(24) The charge for any solo flights made by the student
after completing his flight course, even though he may be
logging hours for a rating or license, is a rental and is
taxable..."

DETERMINATION
The conclusions arrived at in your letter are correct.
Flight instruction is a service transaction which is exempt from
sales tax as provided under s. 212.08(7)(v)1., F.S. This would
include classroom time, ground school, pre and post flight
briefings and critiques, and supervised solo flights.

If a student is required to complete solo flight time after
completing his flight course and is charged a fee for the use of
the aircraft for this purpose, such charges are taxable as
provided under Rules 12A-1.007(14)(a) and 12A-1.071(24), F.A.C.
The same rules would apply if a student has to separately rent
an aircraft in order to take the flight instruction; the rental
of the aircraft would be subject to sales tax.

This response constitutes a Technical Assistance Advisement
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 and your request
are public records under Chapter 119, F.S., which are subject to

disclosure to the public under the conditions of s. 213.22, F.S.
Your name, address, and any other details which might lead to
identification of the taxpayer must be deleted by the Department
before disclosure. In an effort to protect the confidentiality
of such information, we request you notify the undersigned in
writing within 15 days of any deletions you wish made to the
request or the response.

Sincerely,

Sharon Blair
Technical Assistance

SB/pb
Enclosure
Con. #7937