HB 217

1	A bill to be entitled
2	An act relating to the tax on sales, use, and other
3	transactions; amending s. 212.02, F.S.; defining the term
4	"fractional aircraft ownership program"; amending s.
5	212.08, F.S.; providing exemptions for the sale or use of
6	an aircraft for primary use pursuant to a fractional
7	aircraft ownership program and for the parts and labor
8	used in the maintenance, repair, and overhaul associated
9	with aircraft sold or used pursuant to such a program;
10	creating s. 212.0597, F.S.; providing a maximum tax on the
11	sale or use of fractional aircraft ownership interests;
12	providing application; providing limitations; providing an
13	effective date.
14
15	WHEREAS, Florida has identified aviation and aerospace as
16	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 the
21	aviation and aerospace industries at an average annual wage of
22	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 support
26	services, and
27	WHEREAS, Florida intends to remain competitive with other
28	states as additional innovative commercial air transportation
29	products are developed, NOW, THEREFORE,
30
31	Be It Enacted by the Legislature of the State of Florida:
32
33	Section 1.  Subsection (34) is added to section 212.02,
34	Florida Statutes, to read:
35	212.02  Definitions.--The following terms and phrases when
36	used in this chapter have the meanings ascribed to them in this
37	section, except where the context clearly indicates a different
38	meaning:
39	(34)  "Fractional aircraft ownership program" means a
40	program that meets the requirements of Federal Aviation
41	Administration Regulation Title 14, chapter I, part 91, subpart
42	K, C.F.R., except that the program must include a minimum of 25
43	aircraft owned or leased by the business or affiliated group
44	providing the program.
45	Section 2.  Subsection (19) is added to section 212.08,
46	Florida Statutes, to read:
47	212.08  Sales, rental, use, consumption, distribution, and
48	storage tax; specified exemptions.--The sale at retail, the
49	rental, the use, the consumption, the distribution, and the
50	storage to be used or consumed in this state of the following
51	are hereby specifically exempt from the tax imposed by this
52	chapter.
53	(19)  FRACTIONAL AIRCRAFT OWNERSHIP PROGRAMS.--Also exempt
54	from the tax imposed by this chapter is the sale or use of:
55	(a)  Aircraft for primary use in a fractional aircraft
56	ownership program.
57	(b)  Any parts or labor used in the completion,
58	maintenance, repair, or overhaul of aircraft for primary use in
59	a fractional aircraft ownership program.
60
61	The exemptions provided in this subsection are not allowed
62	unless the purchaser or lessee furnishes the dealer with a
63	certificate stating that the lease, purchase, repair, or
64	maintenance to be exempted is for the exclusive use of the
65	purchaser or lessee and that the purchaser or lessee otherwise
66	qualifies for the exemption as provided in this subsection. If a
67	purchaser or lessee makes tax-exempt purchases on a continual
68	basis, the purchaser or lessee may tender the certificate once
69	and allow the dealer to keep the certificate on file. The
70	purchaser or lessee shall inform the dealer that has a
71	certificate on file when the purchaser or lessee no longer
72	qualifies for the exemption. The department shall determine the
73	format of the certificate.
74	Section 3.  Section 212.0597, Florida Statutes, is created
75	to read:
76	212.0597  Maximum tax on fractional aircraft ownership
77	interests.--Notwithstanding other tax rates specified in this
78	chapter, the maximum tax on the sale or use in this state of a
79	fractional ownership interest in aircraft pursuant to a
80	fractional aircraft ownership program is $300. This maximum tax
81	applies to the total consideration paid for the fractional
82	ownership interest, including amounts paid by the fractional
83	owner as monthly management or maintenance fees. The maximum tax
84	applies only when such fractional ownership interest is sold by
85	or to the operator of the fractional aircraft ownership program
86	or when the fractional ownership interest can be transferred
87	only upon the approval of the operator of the fractional
88	aircraft ownership program.
89	Section 4.  This act shall take effect July 1, 2008.

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