Tax reform is such a huge topic in the nation nowadays but there are still some who were not able to apply in Florida for their tax ID. Republican lawmakers recently filed legislation that will remove the aircraft sales tax within the state. This is done in the hope that the aviation industry of Florida will prosper. If the legislation becomes a law, Florida will be included in the limited number of states that offer free tax for their aircraft sales. According to the sponsors of the proposal, this will also be a catalyst in increasing the number jobs related to the aviation industry.
Similar proposals have been witnessed in the past but all of it was not successful because there are other priorities when it comes to tax cutting. Currently, proposals for tax cut are limited due to the lack of budget. According to the advocates of the aviation industry, the legislation will be received in a more positive note this 2018 during the legislative session.
Following majority of the states, Florida is also making assessment on newly bought aircrafts that are covered by the state’s jurisdiction. If the tax is removed, there is a high possibility that buyers of aircraft from out of state will purchase from Florida instead. This will help the local businesses including flight universities and maintenance shops.
According to the president of Aircraft Owners and Pilots Association, Mark Baker, it is a good move to remove the tax so that people will choose to register their aircrafts within Florida instead of going to other states where they can register without the inclusion of taxes. He added that they are not requesting the people to do the act but they these people will know that more aircraft are being constructed in the states thus they will purchase more fuel in Florida. It is high time to remove the taxes.
Critics believed that the legislation is not fair because if aircraft tax is to be removed then the tax added on auto purchases should be eliminated too. Majority of those who apply in Florida for tax ID will not be able to benefit from cutting taxes from aircraft but only the wealthy ones.