Senate Bill sb0286c1

    Florida Senate - 2007                            CS for SB 286

    By the Committee on Commerce; and Senator Fasano





    577-1903-07

  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         parts and labor used in the maintenance,

10         repair, and overhaul associated with aircraft

11         sold or used pursuant to such a program, and

12         for the sale or use of a fractional ownership

13         interest pursuant to such a program; providing

14         an effective date.

15  

16         WHEREAS, Florida has identified aviation and aerospace

17  as targeted industries for economic development purposes, and

18         WHEREAS, Florida has determined that the synergy in the

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

20  leading businesses to the state, and

21         WHEREAS, Florida employs approximately 80,000 people in

22  the aviation and aerospace industries at an average annual

23  wage of approximately $52,000, and

24         WHEREAS, Florida has the third-largest aviation

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

26  and has focused strategies for expanding these aviation

27  support services, and

28         WHEREAS, Florida intends to remain competitive with

29  other states as additional innovative commercial air

30  transportation products are developed, NOW, THEREFORE,

31  

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                            CS for SB 286
    577-1903-07




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

 2  

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

 4  Florida Statutes, to read:

 5         212.02  Definitions.--The following terms and phrases

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

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

 8  different meaning:

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

10  program that meets the requirements set forth in Federal

11  Aviation Administration Regulation Title 14, chapter I, part

12  91, subpart K, C.F.R.

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

14  Florida Statutes, to read:

15         212.08  Sales, rental, use, consumption, distribution,

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

17  the rental, the use, the consumption, the distribution, and

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

19  following are hereby specifically exempt from the tax imposed

20  by this chapter.

21         (19)  FRACTIONAL AIRCRAFT OWNERSHIP PROGRAMS.--Also

22  exempt from the tax imposed by this chapter is the sale or use

23  of:

24         (a)  Aircraft for primary use in a fractional aircraft

25  ownership program.

26         (b)  Any parts or labor used in the completion,

27  maintenance, repair, or overhaul of aircraft for primary use

28  in a fractional aircraft ownership program.

29         (c)  A fractional ownership interest in aircraft

30  pursuant to a fractional aircraft ownership program, including

31  

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2007                            CS for SB 286
    577-1903-07




 1  amounts paid by the fractional owner as monthly management or

 2  maintenance fees.

 3  

 4  The exemptions provided in paragraphs (a) and (b) are not

 5  allowed unless the purchaser or lessee furnishes the dealer

 6  with a certificate stating that the lease, purchase, repair,

 7  or maintenance to be exempted is for the exclusive use of the

 8  purchaser or lessee and that the purchaser or lessee otherwise

 9  qualifies for the exemption as provided in this subsection. If

10  a purchaser or lessee makes tax-exempt purchases on a

11  continual basis, the purchaser or lessee may tender the

12  certificate once and allow the dealer to keep the certificate

13  on file. The purchaser or lessee shall inform the dealer that

14  has a certificate on file when the purchaser or lessee no

15  longer qualifies for the exemption. The department shall

16  determine the format of the certificate.

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

18  

19          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
20                         Senate Bill 286

21                                 

22  Committee Substitute for Senate Bill 286 differs from the bill
    as filed in that it replaces a general definition of
23  "fractional aircraft program" with a reference to the more
    comprehensive definition in federal law, at Title 14, chapter
24  I, part 91, subpart K, Code of Federal Regulations.

25  

26  

27  

28  

29  

30  

31  

                                  3

CODING: Words stricken are deletions; words underlined are additions.