Senate Bill sb0286

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    Florida Senate - 2007                                   SB 286

    By Senator Fasano





    11-190B-07

  1                      A bill to be entitled

  2         An act relating to the tax on sales, use, and

  3         other transactions; amending s. 212.02, F.S.;

  4         defining the term "fractional aircraft

  5         ownership program"; amending s. 212.08, F.S.;

  6         providing exemptions for the sale or use of an

  7         aircraft for primary use pursuant to a

  8         fractional aircraft ownership program, for the

  9         maintenance, repair, and overhaul associated

10         with aircraft sold or used pursuant to such a

11         program, and for the sale or use of a

12         fractional ownership interest pursuant to such

13         a program; providing an effective date.

14  

15         WHEREAS, Florida has identified aviation and aerospace

16  as targeted industries for economic development purposes, and

17         WHEREAS, Florida has determined that the synergy in the

18  space, aerospace, and aviation industries attracts the world's

19  leading businesses to the state, and

20         WHEREAS, Florida employs approximately 80,000 people in

21  the aviation and aerospace industries at an average annual

22  wage of approximately $52,000, and

23         WHEREAS, Florida has the third-largest aviation

24  maintenance, repair, and overhaul cluster in the United States

25  and has focused strategies for expanding these aviation

26  support services, and

27         WHEREAS, Florida intends to remain competitive with

28  other states as additional innovative commercial air

29  transportation products are developed, NOW, THEREFORE,

30  

31  Be It Enacted by the Legislature of the State of Florida:

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    Florida Senate - 2007                                   SB 286
    11-190B-07




 1         Section 1.  Subsection (34) is added to section 212.02,

 2  Florida Statutes, to read:

 3         212.02  Definitions.--The following terms and phrases

 4  when used in this chapter have the meanings ascribed to them

 5  in this section, except where the context clearly indicates a

 6  different meaning:

 7         (34)  "Fractional aircraft ownership program" means a

 8  program that:

 9         (a)  Is provided by a business or affiliated group that

10  has at least 25 turbojet or turboprop aircraft regardless of

11  the maximum certified takeoff weight of the aircraft;

12         (b)  Involves the provision of significant management

13  services;

14         (c)  Requires one or more fractional owners per

15  aircraft, with at least one aircraft having more than one

16  owner of whom each owner has at least a 1/16th interest;

17         (d)  Has dry-lease intercharge arrangements in effect

18  among all the owners; and

19         (e)  Has multiyear program arrangements in effect as to

20  all of the components of the program described in paragraphs

21  (a)-(d).

22         Section 2.  Subsection (19) is added to section 212.08,

23  Florida Statutes, to read:

24         212.08  Sales, rental, use, consumption, distribution,

25  and storage tax; specified exemptions.--The sale at retail,

26  the rental, the use, the consumption, the distribution, and

27  the storage to be used or consumed in this state of the

28  following are hereby specifically exempt from the tax imposed

29  by this chapter.

30         (19)  AIRCRAFT IN A FRACTIONAL AIRCRAFT OWNERSHIP

31  PROGRAM.--The tax imposed by this chapter does not apply to

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    Florida Senate - 2007                                   SB 286
    11-190B-07




 1  the sale or use of an aircraft for primary use in a fractional

 2  aircraft ownership program; the sale or use of any parts or

 3  labor used in the completion, maintenance, repair, or overhaul

 4  of an aircraft for primary use in a fractional aircraft

 5  ownership program; and the sale or use of a fractional

 6  ownership interest in an aircraft pursuant to a fractional

 7  aircraft ownership program, including amounts paid by the

 8  fractional owner as monthly management or maintenance fees.

 9         Section 3.  This act shall take effect July 1, 2007.

10  

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12                          SENATE SUMMARY

13    Relates to the tax on sales, use, and other transactions.
      Defines the term "fractional aircraft ownership program."
14    Provides exemptions from the tax for the sale or use of
      an aircraft for primary use pursuant to a fractional
15    aircraft ownership program, for the maintenance, repair,
      and overhaul associated with aircraft sold or used
16    pursuant to such a program, and for the sale or use of a
      fractional ownership interest pursuant to such a program.
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