Florida Clarifies Ad Valorem Taxation of Leased Flight Simulators: PTO 25-09

Florida’s PTO Bulletin 25-09 provides guidance on how leased flight simulation training devices are taxed for ad valorem purposes, clarifying the responsibilities of property appraisers and taxpayers.

Introduction

In August 2025, the Florida Department of Revenue’s Property Tax Oversight (PTO) program issued Informational Bulletin 25-09, addressing the ad valorem taxation of leased flight simulation training devices. This bulletin provides critical guidance for property appraisers, lessors, and lessees of aviation equipment, ensuring uniform assessment practices across Florida counties.

Background

Flight simulation training devices are sophisticated, high-value assets often used by airlines, training companies, and aviation schools. Because these simulators are frequently leased rather than owned, confusion has arisen over how they should be assessed for ad valorem tax purposes.

Taxation of Leased Equipment

PTO 25-09 clarifies that leased flight simulators remain subject to ad valorem taxation as tangible personal property. The property appraiser must assess the device’s value, regardless of whether it is owned outright or leased by a taxpayer operating in Florida.

Responsibilities of the Lessor and Lessee

• Lessors: As the owners of the simulators, lessors may be responsible for reporting the property on Florida’s tangible personal property tax return, depending on the terms of the lease.
• Lessees: If the lease shifts the obligation, the lessee may be required to file the return and account for the equipment’s taxable value.

PTO 25-09 emphasizes that reporting and compliance depend on the specific leasing arrangement and applicable Florida law.

Uniformity in Assessment

The bulletin instructs property appraisers to apply consistent standards across counties. Without uniform guidance, treatment of leased simulators could vary, leading to uncertainty and potential litigation. PTO 25-09 resolves this by confirming that leased simulators are taxable and must be included in tangible personal property assessments.

Conclusion

PTO 25-09 ensures that Florida’s property appraisers treat leased flight simulation training devices consistently as taxable tangible personal property. Both lessors and lessees should carefully review their lease terms to determine reporting obligations and ensure compliance with Florida’s ad valorem tax requirements.