| 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 |
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| 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 |
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| 31 | Be It Enacted by the Legislature of the State of Florida: |
| 32 |
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| 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, as |
| 44 | defined by s. 1504(a) of the Internal Revenue Code of 1986, as |
| 45 | amended, providing the program. Such aircraft shall be used in |
| 46 | the fractional aircraft ownership program providing the program. |
| 47 | Section 2. Subsection (19) is added to section 212.08, |
| 48 | Florida Statutes, to read: |
| 49 | 212.08 Sales, rental, use, consumption, distribution, and |
| 50 | storage tax; specified exemptions.--The sale at retail, the |
| 51 | rental, the use, the consumption, the distribution, and the |
| 52 | storage to be used or consumed in this state of the following |
| 53 | are hereby specifically exempt from the tax imposed by this |
| 54 | chapter. |
| 55 | (19) FRACTIONAL AIRCRAFT OWNERSHIP PROGRAMS.--Also exempt |
| 56 | from the tax imposed by this chapter is the sale or use of: |
| 57 | (a) Aircraft for primary use in a fractional aircraft |
| 58 | ownership program. |
| 59 | (b) Any parts or labor used in the completion, |
| 60 | maintenance, repair, or overhaul of aircraft for primary use in |
| 61 | a fractional aircraft ownership program. |
| 62 |
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| 63 | The exemptions provided in paragraphs (a) and (b) are not |
| 64 | allowed unless the purchaser or lessee furnishes the dealer with |
| 65 | a certificate stating that the lease, purchase, repair, or |
| 66 | maintenance to be exempted is for primary use in a fractional |
| 67 | aircraft ownership program and that the purchaser or lessee |
| 68 | otherwise qualifies for the exemption as provided in this |
| 69 | subsection. If a purchaser or lessee makes tax-exempt purchases |
| 70 | on a continual basis, the purchaser or lessee may tender the |
| 71 | certificate once and allow the dealer to keep the certificate on |
| 72 | file. The purchaser or lessee shall inform the dealer that has a |
| 73 | certificate on file when the purchaser or lessee no longer |
| 74 | qualifies for the exemption. The department shall determine the |
| 75 | format of the certificate. |
| 76 | Section 3. Section 212.0597, Florida Statutes, is created |
| 77 | to read: |
| 78 | 212.0597 Maximum tax on fractional aircraft ownership |
| 79 | interests.--The tax imposed under this chapter, including any |
| 80 | discretionary sales surtax imposed under s. 212.055, shall be |
| 81 | limited to $300 on the sale or use in this state of a fractional |
| 82 | ownership interest in aircraft pursuant to a fractional aircraft |
| 83 | ownership program. This maximum tax applies to the total |
| 84 | consideration paid for the fractional ownership interest, |
| 85 | including amounts paid by the fractional owner as monthly |
| 86 | management or maintenance fees. The maximum tax applies only |
| 87 | when such fractional ownership interest is sold by or to the |
| 88 | operator of the fractional aircraft ownership program or when |
| 89 | the fractional ownership interest can be transferred only upon |
| 90 | the approval of the operator of the fractional aircraft |
| 91 | ownership program. |
| 92 | Section 4. This act shall take effect July 1, 2008. |