| 1 | A bill to be entitled |
| 2 | An act relating to an exemption from the tax on sales, |
| 3 | use, and other transactions; amending s. 212.02, F.S.; |
| 4 | defining the term "qualified aircraft"; amending s. |
| 5 | 212.08, F.S.; including qualified aircraft under certain |
| 6 | miscellaneous exemption provisions relating to aircraft; |
| 7 | exempting certain advertising materials distributed free |
| 8 | of charge by mail in an envelope; creating s. 212.0801, |
| 9 | F.S.; providing criteria, requirements, and limitations |
| 10 | on exemptions for purchases or leases of qualified |
| 11 | aircraft; providing an effective date. |
| 12 |
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| 13 | Be It Enacted by the Legislature of the State of Florida: |
| 14 |
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| 15 | Section 1. Subsection (33) is added to section 212.02, |
| 16 | Florida Statutes, to read: |
| 17 | 212.02 Definitions.--The following terms and phrases when |
| 18 | used in this chapter have the meanings ascribed to them in this |
| 19 | section, except where the context clearly indicates a different |
| 20 | meaning: |
| 21 | (33) "Qualified aircraft" means any aircraft having a maximum |
| 22 | certified takeoff weight of less than 10,000 pounds and equipped |
| 23 | with twin turbofan engines that meet Stage IV noise requirements |
| 24 | that is used by a business operating as an on-demand air carrier |
| 25 | under Federal Aviation Administration Regulation Title 14, chapter |
| 26 | I, part 135, Code of Federal Regulations, that owns and operates a |
| 27 | fleet of at least 25 of such aircraft in this state. |
| 28 | Section 2. Paragraphs (ee), (rr), and (ss) of subsection |
| 29 | (7) of section 212.08, Florida Statutes, are amended, and |
| 30 | paragraph (ccc) is added to that subsection, to read: |
| 31 | 212.08 Sales, rental, use, consumption, distribution, and |
| 32 | storage tax; specified exemptions.--The sale at retail, the |
| 33 | rental, the use, the consumption, the distribution, and the |
| 34 | storage to be used or consumed in this state of the following |
| 35 | are hereby specifically exempt from the tax imposed by this |
| 36 | chapter. |
| 37 | (7) MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any |
| 38 | entity by this chapter do not inure to any transaction that is |
| 39 | otherwise taxable under this chapter when payment is made by a |
| 40 | representative or employee of the entity by any means, |
| 41 | including, but not limited to, cash, check, or credit card, even |
| 42 | when that representative or employee is subsequently reimbursed |
| 43 | by the entity. In addition, exemptions provided to any entity by |
| 44 | this subsection do not inure to any transaction that is |
| 45 | otherwise taxable under this chapter unless the entity has |
| 46 | obtained a sales tax exemption certificate from the department |
| 47 | or the entity obtains or provides other documentation as |
| 48 | required by the department. Eligible purchases or leases made |
| 49 | with such a certificate must be in strict compliance with this |
| 50 | subsection and departmental rules, and any person who makes an |
| 51 | exempt purchase with a certificate that is not in strict |
| 52 | compliance with this subsection and the rules is liable for and |
| 53 | shall pay the tax. The department may adopt rules to administer |
| 54 | this subsection. |
| 55 | (ee) Aircraft repair and maintenance labor charges.--There |
| 56 | shall be exempt from the tax imposed by this chapter all labor |
| 57 | charges for the repair and maintenance of qualified aircraft, |
| 58 | aircraft of more than 15,000 pounds maximum certified takeoff |
| 59 | weight, and rotary wing aircraft of more than 10,000 pounds |
| 60 | maximum certified takeoff weight. Except as otherwise provided |
| 61 | in this chapter, charges for parts and equipment furnished in |
| 62 | connection with such labor charges are taxable. |
| 63 | (rr) Equipment used in aircraft repair and |
| 64 | maintenance.--There shall be exempt from the tax imposed by this |
| 65 | chapter replacement engines, parts, and equipment used in the |
| 66 | repair or maintenance of qualified aircraft, aircraft of more |
| 67 | than 15,000 pounds maximum certified takeoff weight, and rotary |
| 68 | wing aircraft of more than 10,300 pounds maximum certified |
| 69 | takeoff weight, when such parts or equipment are installed on |
| 70 | such aircraft that is being repaired or maintained in this |
| 71 | state. |
| 72 | (ss) Aircraft sales or leases.--The sale or lease of a |
| 73 | qualified aircraft or an aircraft of more than 15,000 pounds |
| 74 | maximum certified takeoff weight for use by a common carrier is |
| 75 | exempt from the tax imposed by this chapter. As used in this |
| 76 | paragraph, "common carrier" means an airline operating under |
| 77 | Federal Aviation Administration regulations contained in Title |
| 78 | 14, chapter I, part 121 or part 129 of the Code of Federal |
| 79 | Regulations. |
| 80 | (ccc) Advertising materials distributed free of charge by |
| 81 | mail in an envelope.--Likewise exempt are materials consisting |
| 82 | exclusively of advertisements, such as individual coupons or |
| 83 | other individual cards, sheets, or pages of printed advertising, |
| 84 | that are distributed free of charge by mail in an envelope for |
| 85 | 10 or more persons on a monthly, bimonthly, or other regular |
| 86 | basis. |
| 87 | Section 3. Section 212.0801, Florida Statutes, is created |
| 88 | to read: |
| 89 | 212.0801 Qualified aircraft exemption.--To be eligible to |
| 90 | receive an exemption under s. 212.08(7) for a qualified aircraft, a |
| 91 | purchaser or lessee must offer, in writing, to participate in a |
| 92 | flight training and research program with two or more universities |
| 93 | based in this state which offer graduate programs in aeronautical |
| 94 | or aerospace engineering and offer flight training through a school |
| 95 | of aeronautics or college of aviation. The purchaser or lessee |
| 96 | shall forward a copy of the written offer to the Department of |
| 97 | Revenue. No exemption provided in this chapter for the lease, |
| 98 | purchase, repair, or maintenance of a qualified aircraft shall be |
| 99 | allowed unless the purchaser or lessee furnishes the dealer with a |
| 100 | certificate stating that the lease, purchase, repair, or |
| 101 | maintenance to be exempted is for the exclusive use of the |
| 102 | purchaser or lessee of a qualified aircraft and that the |
| 103 | purchaser or lessee otherwise qualifies for the exemption as |
| 104 | provided in this section. If a purchaser or lessee makes tax- |
| 105 | exempt purchases of qualified aircraft or leases a qualified |
| 106 | aircraft on a continual basis, the purchaser or lessee may |
| 107 | tender the certificate once and allow the dealer to keep a |
| 108 | certificate on file. The purchaser or lessee shall inform the |
| 109 | dealer that has a certificate on file when the purchaser or |
| 110 | lessee no longer qualifies for the exemption. The department |
| 111 | shall determine the format of the certificate. |
| 112 | Section 4. This act shall take effect July 1, 2006. |