Florida Senate - 2009                              CS for SB 618
       
       
       
       By the Committee on Commerce; and Senator Altman
       
       
       
       
       577-03413-09                                           2009618c1
    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
    4         term “fractional aircraft ownership program”; amending
    5         s. 212.08, F.S.; providing tax exemptions on the sale
    6         or use of aircraft primarily used in a fractional
    7         aircraft ownership program and for the parts and labor
    8         used in the maintenance, repair, and overhaul of such
    9         aircraft; creating s. 212.0597, F.S.; providing a
   10         maximum tax on the sale or use of fractional aircraft
   11         ownership interests; providing an effective date.
   12  
   13         WHEREAS, Florida has identified the aviation and aerospace
   14  industries for economic development, and
   15         WHEREAS, Florida has determined that the synergy in the
   16  space, aerospace, and aviation industries attracts the world’s
   17  leading businesses to the state, and
   18         WHEREAS, Florida employs approximately 80,000 people in the
   19  aviation and aerospace industries at an average annual wage of
   20  $52,000, and
   21         WHEREAS, Florida has the third-largest aviation
   22  maintenance, repair, and overhaul cluster in the United States
   23  and has strategies directed toward expanding these aviation
   24  support services, and
   25         WHEREAS, Florida intends to remain competitive with other
   26  states as additional innovative commercial air transportation
   27  products are developed, NOW, THEREFORE,
   28  
   29  Be It Enacted by the Legislature of the State of Florida:
   30  
   31         Section 1. Subsection (34) is added to section 212.02,
   32  Florida Statutes, to read:
   33         212.02 Definitions.—The following terms and phrases when
   34  used in this chapter have the meanings ascribed to them in this
   35  section, except where the context clearly indicates a different
   36  meaning:
   37         (34)“Fractional aircraft ownership program” means a
   38  program that meets the requirements of 14 C.F.R part 91, subpart
   39  K, relating to fractional ownership operations, except that the
   40  program must include a minimum of 25 aircraft owned or leased by
   41  the business or affiliated group, as defined by s. 1504(a) of
   42  the Internal Revenue Code, providing the program. Such aircraft
   43  must be used in the fractional aircraft ownership program
   44  providing the program.
   45         Section 2. Paragraph (ggg) is added to subsection (7) of
   46  section 212.08, 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         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   54  entity by this chapter do not inure to any transaction that is
   55  otherwise taxable under this chapter when payment is made by a
   56  representative or employee of the entity by any means,
   57  including, but not limited to, cash, check, or credit card, even
   58  when that representative or employee is subsequently reimbursed
   59  by the entity. In addition, exemptions provided to any entity by
   60  this subsection do not inure to any transaction that is
   61  otherwise taxable under this chapter unless the entity has
   62  obtained a sales tax exemption certificate from the department
   63  or the entity obtains or provides other documentation as
   64  required by the department. Eligible purchases or leases made
   65  with such a certificate must be in strict compliance with this
   66  subsection and departmental rules, and any person who makes an
   67  exempt purchase with a certificate that is not in strict
   68  compliance with this subsection and the rules is liable for and
   69  shall pay the tax. The department may adopt rules to administer
   70  this subsection.
   71         (ggg)Fractional aircraft ownership programs.—Also exempt
   72  from the tax imposed by this chapter is the sale or use of
   73  aircraft primarily used in a fractional aircraft ownership
   74  program, and any parts or labor used in the completion,
   75  maintenance, repair, or overhaul of such aircraft. The exemption
   76  is not allowed unless the purchaser or lessee furnishes the
   77  dealer with a certificate stating that the lease, purchase,
   78  repair, or maintenance to be exempted is for aircraft primarily
   79  used in a fractional aircraft ownership program and that the
   80  purchaser or lessee qualifies for the exemption. If a purchaser
   81  or lessee makes tax-exempt purchases on a continual basis, the
   82  purchaser or lessee may allow the dealer to keep the certificate
   83  on file. The purchaser or lessee must inform the dealer that has
   84  the certificate on file if the purchaser or lessee no longer
   85  qualifies for the exemption. The department shall adopt rules to
   86  administer this section, including rules determining the format
   87  of the certificate.
   88         Section 3. Section 212.0597, Florida Statutes, is created
   89  to read:
   90         212.0597Maximum tax on fractional aircraft ownership
   91  interests.—The tax imposed under this chapter, including any
   92  discretionary sales surtax under s. 212.055, is limited to $300
   93  on the sale or use in this state of a fractional ownership
   94  interest in aircraft pursuant to a fractional aircraft ownership
   95  program. This maximum tax applies to the total consideration
   96  paid for the fractional ownership interest, including any
   97  amounts paid by the fractional owner as monthly management or
   98  maintenance fees. The maximum tax applies only if the fractional
   99  ownership interest is sold by or to the operator of the
  100  fractional aircraft ownership program, or if the fractional
  101  ownership interest is transferred upon the approval of the
  102  operator of the fractional aircraft ownership program.
  103         Section 4. This act shall take effect July 1, 2009.