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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, as

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defined by s. 1504(a) of the Internal Revenue Code of 1986, as

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amended, providing the program. Such aircraft shall be used in

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the fractional aircraft ownership program 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 aircraft for primary use in a

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fractional aircraft ownership program and that the purchaser or

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lessee otherwise qualifies for the exemption as provided in this

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subsection. If a purchaser or lessee makes tax-exempt purchases

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on a continual basis, the purchaser or lessee may tender the

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certificate once and allow the dealer to keep the certificate on

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file. The 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.--The tax imposed under this chapter, including any

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discretionary sales surtax under s. 212.055, shall be limited to

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$300 on the sale or use in this state of a fractional ownership

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interest in aircraft pursuant to a fractional aircraft ownership

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program. This maximum tax applies to the total consideration paid

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for the fractional ownership interest, including amounts paid by

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the fractional owner as monthly management or maintenance fees.

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The maximum tax applies only when such fractional ownership

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interest is sold by or to the operator of the fractional aircraft

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ownership program or when the fractional ownership interest can

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be transferred only upon the approval of the operator of the

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fractional aircraft ownership program.

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