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A bill to be entitled

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

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transactions; amending s. 212.02, F.S.; defining the term

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"fractional aircraft ownership program"; amending s.

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212.08, F.S.; providing exemptions for the sale or use of

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an aircraft for primary use pursuant to a fractional

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aircraft ownership program and for the parts and labor

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used in the maintenance, repair, and overhaul associated

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with aircraft sold or used pursuant to such a program;

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creating s. 212.0597, F.S.; providing a maximum tax on the

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sale or use of fractional aircraft ownership interests;

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providing an effective date.

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     WHEREAS, Florida has identified aviation and aerospace as

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targeted industries for economic development purposes, and

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     WHEREAS, Florida has determined that the synergy in the

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

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leading businesses to the state, and

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     WHEREAS, Florida employs approximately 80,000 people in the

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aviation and aerospace industries at an average annual wage of

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approximately $52,000, and

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     WHEREAS, Florida has the third-largest aviation maintenance,

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repair, and overhaul cluster in the United States and has focused

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strategies for expanding these aviation support services, and

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     WHEREAS, Florida intends to remain competitive with other

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states as additional innovative commercial air transportation

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products are developed, NOW, THEREFORE,

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

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

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Florida Statutes, to read:

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     212.02  Definitions.--The following terms and phrases when

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

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section, except where the context clearly indicates a different

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meaning:

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     (34) "Fractional aircraft ownership program" means a

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program that meets the requirements in Federal Aviation

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Administration Regulation Title 14, chapter I, part 91, subpart

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K, C.F.R., except that the program must include a minimum of 25

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aircraft owned or leased by the business or affiliated group

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providing the program.

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

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Florida Statutes, to read:

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     212.08  Sales, rental, use, consumption, distribution, and

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

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

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storage to be used or consumed in this state of the following are

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hereby specifically exempt from the tax imposed by this chapter.

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

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from the tax imposed by this chapter is the sale or use of:

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     (a) Aircraft for primary use in a fractional aircraft

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ownership program.

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

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repair, or overhaul of aircraft for primary use in a fractional

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aircraft ownership program.

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

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unless the purchaser or lessee furnishes the dealer with a

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certificate stating that the lease, purchase, repair, or

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maintenance to be exempted is for the exclusive use of the

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purchaser or lessee and that the purchaser or lessee otherwise

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

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purchaser or lessee makes tax-exempt purchases on a continual

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basis, the purchaser or lessee may tender the certificate once

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and allow the dealer to keep the certificate on file. The

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purchaser or lessee shall inform the dealer that has a

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certificate on file when the purchaser or lessee no longer

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qualifies for the exemption. The department shall determine the

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format of the certificate.

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     Section 3.  Section 212.0597, Florida Statutes, is created

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to read:

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     212.0597 Maximum tax on fractional aircraft ownership

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interests.--Notwithstanding other tax rates specified in this

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chapter, the maximum tax on the sale or use in this state of a

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fractional ownership interest in aircraft pursuant to a

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fractional aircraft ownership program is $300. This maximum tax

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applies to the total consideration paid for the fractional

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ownership interest, including amounts paid by the fractional

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owner as monthly management or maintenance fees. The maximum tax

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applies only when such fractional ownership interest is sold by

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or to the operator of the fractional aircraft ownership program

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or when the fractional ownership interest can be transferred only

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upon the approval of the operator of the fractional aircraft

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ownership program.

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     Section 4.  This act shall take effect July 1, 2008.