HB 913

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 tax exemptions on the sale or use
6	of aircraft primarily used in a fractional aircraft
7	ownership program and for the parts and labor used in the
8	maintenance, repair, and overhaul of such aircraft;
9	creating s. 212.0597, F.S.; providing a maximum tax on the
10	sale or use of fractional aircraft ownership interests;
11	providing an effective date.
12
13	WHEREAS, Florida has identified aviation and aerospace as
14	industries suitable 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,
39	subpart K, relating to fractional ownership operations, except
40	that the business or affiliated group, as defined by s. 1504(a)
41	of the Internal Revenue Code, must own or lease a minimum of 25
42	aircraft. Such aircraft must be used in the fractional aircraft
43	ownership program providing the program.
44	Section 2.  Paragraph (ggg) is added to subsection (7) of
45	section 212.08, Florida Statutes, to read:
46	212.08  Sales, rental, use, consumption, distribution, and
47	storage tax; specified exemptions.-The sale at retail, the
48	rental, the use, the consumption, the distribution, and the
49	storage to be used or consumed in this state of the following
50	are hereby specifically exempt from the tax imposed by this
51	chapter.
52	(7)  MISCELLANEOUS EXEMPTIONS.-Exemptions provided to any
53	entity by this chapter do not inure to any transaction that is
54	otherwise taxable under this chapter when payment is made by a
55	representative or employee of the entity by any means,
56	including, but not limited to, cash, check, or credit card, even
57	when that representative or employee is subsequently reimbursed
58	by the entity. In addition, exemptions provided to any entity by
59	this subsection do not inure to any transaction that is
60	otherwise taxable under this chapter unless the entity has
61	obtained a sales tax exemption certificate from the department
62	or the entity obtains or provides other documentation as
63	required by the department. Eligible purchases or leases made
64	with such a certificate must be in strict compliance with this
65	subsection and departmental rules, and any person who makes an
66	exempt purchase with a certificate that is not in strict
67	compliance with this subsection and the rules is liable for and
68	shall pay the tax. The department may adopt rules to administer
69	this subsection.
70	(ggg)  Fractional aircraft ownership programs.-The sale or
71	use of aircraft primarily used in a fractional aircraft
72	ownership program or of any parts or labor used in the
73	completion, maintenance, repair, or overhaul of such aircraft is
74	exempt from the tax imposed by this chapter. The exemption is
75	not allowed unless the purchaser or lessee furnishes the dealer
76	with a certificate stating that the lease, purchase, repair, or
77	maintenance is for aircraft primarily used in a fractional
78	aircraft ownership program and that the purchaser or lessee
79	qualifies for the exemption. If a purchaser or lessee makes tax-
80	exempt purchases on a continual basis, the purchaser or lessee
81	may allow the dealer to keep the certificate on file. The
82	purchaser or lessee must inform a dealer that keeps the
83	certificate on file if the purchaser or lessee no longer
84	qualifies for the exemption. The department shall adopt rules to
85	administer this paragraph, including rules determining the
86	format of the certificate.
87	Section 3.  Section 212.0597, Florida Statutes, is created
88	to read:
89	212.0597  Maximum tax on fractional aircraft ownership
90	interests.-The maximum tax imposed under this chapter, including
91	any discretionary sales surtax under s. 212.055, is limited to
92	$300 on the sale or use in this state of a fractional ownership
93	interest in aircraft pursuant to a fractional aircraft ownership
94	program. The tax applies to the total consideration paid for the
95	fractional ownership interest, including any amounts paid by the
96	fractional owner as monthly management or maintenance fees. The
97	tax applies only if the fractional ownership interest is sold by
98	or to the operator of the fractional aircraft ownership program,
99	or if the fractional ownership interest is transferred upon the
100	approval of the operator of the fractional aircraft ownership
101	program.
102	Section 4.  This act shall take effect July 1, 2010.

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