Florida Repeals the Aviation Fuel Excise Tax: What Air Carriers, FBOs, and Fuel Sellers Must Know for 2026

Florida Repeals the Aviation Fuel Excise Tax: What Air Carriers, FBOs, and Fuel Sellers Must Know for 2026

Florida is officially repealing the aviation fuel excise tax on January 1, 2026, eliminating the 4.27-cent-per-gallon levy on jet fuel, undyed kerosene, and aviation fuel. The change removes long-standing reporting and registration requirements for air carriers, fuel sellers, and fixed-base operators (FBOs). :contentReference[oaicite:2]{index=2}

1. Excise Tax Fully Repealed

Beginning January 1, 2026, aviation fuel will no longer be subject to Florida’s excise tax, and taxpayers will no longer file fuel tax returns for these products.

2. Sales and Use Tax Eliminated

Jet fuel, undyed kerosene, and aviation fuel will also be exempt from sales and use tax. Retailers and FBOs selling only aviation fuel will no longer need a Florida sales tax registration.

3. Pollutants Tax Still Applies

Despite the repeal, aviation fuels containing petroleum products remain subject to Florida’s pollutants tax and must continue to be reported on Form DR-904.

4. No Credits for Pre-2026 Inventory

Fuel purchased before January 1, 2026, but sold afterward will not qualify for any credit or refund. Businesses must carefully manage year-end inventory to avoid unrecoverable tax expense.

5. Audit Implications

Although aviation fuel taxes are being eliminated, businesses may still face FDOR review for pollutants tax compliance, historical periods, and deregistration issues.

6. Action Items for Aviation Businesses

• Manage inventory to limit pre-2026 taxable purchases.
• Evaluate whether to cancel sales tax registration.
• Continue pollutants tax reporting.
• File final 2025 returns properly.
• Review contracts affecting fuel pricing or tax allocation.
  
  

FDOR audit exposure changes as Florida transitions to the new rules. Businesses should take proactive steps now to prepare for 2026.