TALLAHASSEE -- Buyers of yachts and private airplanes in Florida would be spared from paying the full 6 percent sales tax on their purchase. But magazine subscribers would now start paying taxes.

Those are among the decisions the House Finance and Tax Committee made Monday as it weighed pros and cons of revising Florida's tax system in a wide-ranging bill that also creates two sales tax holidays for shoppers.

Sometimes lawmakers were motivated by equity: Since a magazine that arrives in the mail is tax-free but the same magazine is taxed when sold at a convenience store, they arguedthe tax should apply to both.

Sometimes they were motivated by tax avoidance: Florida residents too often skip out on paying the sales taxes on purchases of high-end planes and boats by keeping them out of state for six months. By capping the tax, they argued, buyers may keep their boats and planes in Florida.

And sometimes they just couldn't agree, in which case the Republican majority won. A Democratic proposal to require the sales tax be imposed on bottled water in containers one gallon or less was defeated in a party line vote.

''This wasn't about raising revenue. This was an exercise in making sure we have a fair taxation system,'' said Rep. Ellyn Bogdanoff, the Fort Lauderdale Republican who chairs the committee and put together the tax bill.

In the end, the bill was approved unanimously -- as both Republicans and Democrats admitted the final version was not perfect.

The measure was originally intended to eliminate several sales tax exemptions to finance the $29 million sales tax holidays, but a series of amendments whittled those exemptions down and added new ones. The end result is that the bill will cost the state about $25 million more than it will produce in new revenue.

The House committee clearly agreed that the best way to raise revenues is to remove the enticement for tax avoidance. A measure proposed by Rep. Tom Grady, R-Naples, would cap the sales tax on boats and planes that cost more than $300,000 at $18,000. Called the Aviation and Maritime Full Employment Act, it won bipartisan support and was seen by members as an economic development initiative.

Grady argued that Florida residents are avoiding sales taxes by buying their planes and boats out of state and storing them elsewhere or registering them in a tax-friendly location such as the Cayman Islands until the tax no longer applies in six months.

Since most boat and plane owners pay substantial amounts on repairs and maintenance in the first six months of ownership, the state is losing out on those expenditures, he said.

''This makes us look like we're giving tax breaks to the wealthy when in fact what we're trying to do is stimulate the economy,'' said Rep. Jim Waldman, a Coconut Creek Democrat.

Added Rep. John Wood, a Bartow Republican: ``I don't feel like we're giving a tax break to anybody because the people who we're targeting aren't paying the tax anyway, so what we're doing is a revenue generator.''

The estimated cost of the tax break -- $8.3 million -- further puts the bill off balance, making it cost more than it raises.

An attempt to replace that lost revenue by imposing the sales tax on bottled water for products 4 gallons and less was rejected by the committee in a party-line vote of 10 to 4. An amendment to reduce the tax to products one gallon or less was also rejected.

Rep. Perry Thurston, D-Plantation, supported the yacht and plane tax break, saying the economic development will help his district, though few of his constituents can afford to own them. He offered the bottled water amendment, excluding containers of more than 4 gallons but imposing the sales tax on smaller bottles, because ``it is a convenience item.''

But Bogdanoff disagreed. ''Water is a necessity of life and I don't care what size bottle it comes in,'' she said.

Democrats also failed at an attempt to remove a provision from the bill that would tax magazine subscriptions and newspapers that are received by mail.

Democrats also tried to make the sales tax holiday permanent. Without it, the tax-free holidays for shoppers to buy hurricane supplies in June and back-to-school supplies in August both expire after this year. By contrast, the the elimination of the tax breaks that pay for them remains permanent.

''If we can afford a bill that helps out struggling families in tough economic times then we probably can afford this going into the future,'' said Rep. Keith Fitzgerald, a Sarasota Democrat who sponsored the amendment.

Bogdanoff said it was a bad idea. ''I don't think it's a good idea to make this permanent,'' she said. ``This is premature, especially in these economic times. I would encourage everyone to vote against it.''

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