Senate Bill sb0286c2

    Florida Senate - 2007                     CS for CS for SB 286

    By the Committees on Finance and Tax; Commerce; and Senator
    Fasano




    593-2439-07

  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  

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






    Florida Senate - 2007                     CS for CS for SB 286
    593-2439-07




 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., except that the program must include a

13  minimum of 25 aircraft owned or leased by the business or

14  affiliated group providing the program.

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

16  Florida Statutes, to read:

17         212.08  Sales, rental, use, consumption, distribution,

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

19  the rental, the use, the consumption, the distribution, and

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

21  following are hereby specifically exempt from the tax imposed

22  by this chapter.

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

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

25  of:

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

27  ownership program.

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

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

30  in a fractional aircraft ownership program.

31  

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






    Florida Senate - 2007                     CS for CS for SB 286
    593-2439-07




 1         (c)  A fractional ownership interest in aircraft

 2  pursuant to a fractional aircraft ownership program, including

 3  amounts paid by the fractional owner as monthly management or

 4  maintenance fees.

 5  

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

 7  allowed unless the purchaser or lessee furnishes the dealer

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

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

10  purchaser or lessee and that the purchaser or lessee otherwise

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

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

13  continual basis, the purchaser or lessee may tender the

14  certificate once and allow the dealer to keep the certificate

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

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

17  longer qualifies for the exemption. The department shall

18  determine the format of the certificate.

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

20  

21          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
22                            CS/SB 286

23                                 

24  The Committee Substitute provides that to qualify for this
    sales tax exemption, the fractional ownership program must
25  include a minimum of 25 aircraft owned or leased by the
    business or affiliated group providing the program.
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CODING: Words stricken are deletions; words underlined are additions.