Florida Senate - 2015 CS for SB 722
By the Committee on Finance and Tax; and Senator Flores
593-03129-15 2015722c1
1 A bill to be entitled
2 An act relating to aviation; amending s. 206.9825,
3 F.S.; revising the tax rate of the excise tax on
4 certain aviation fuels; revising the criteria to
5 receive an excise tax exemption for certain aviation
6 fuel delivered by licensed wholesalers or terminal
7 suppliers; deleting obsolete language; requiring the
8 Department of Economic Opportunity to conduct a study
9 on specified issues relating to intrastate commercial
10 air service and flight training and education;
11 requiring the department to submit a report on the
12 study to the Governor and the Legislature by a
13 specified date; providing effective dates.
14
15 Be It Enacted by the Legislature of the State of Florida:
16
17 Section 1. Effective July 1, 2017, subsection (1),
18 paragraph (a) of subsection (2), and subsections (3), (4), and
19 (5) of section 206.9825, Florida Statutes, are amended to read:
20 206.9825 Aviation fuel tax.—
21 (1)(a) Except as otherwise provided in this part, an excise
22 tax of 5.4 6.9 cents per gallon of aviation fuel is imposed upon
23 every gallon of aviation fuel sold in this state, or brought
24 into this state for use, upon which such tax has not been paid
25 or the payment thereof has not been lawfully assumed by some
26 person handling the same in this state. Fuel taxed pursuant to
27 this part shall not be subject to the taxes imposed by ss.
28 206.41(1)(d), (e), and (f) and 206.87(1)(b), (c), and (d).
29 (b) A Any licensed wholesaler or terminal supplier may
30 receive a credit or refund of the 5.4 cents excise tax paid by
31 the wholesaler or supplier for aviation fuel that is delivered
32 by the wholesaler or supplier delivers aviation fuel to any of
33 the three an air carriers carrier offering transcontinental jet
34 service and that has the greatest growth during a state fiscal
35 year, beginning July 1, 2015, as determined by the following
36 factors:
37 1. The number of new jobs created in this state which are
38 at or above this state’s average prevailing wage.
39 2. Total capital investment in this state.
40 3. The number of new routes established to or from this
41 state.
42 4. The number of ticket sales to or from this state, after
43 January 1, 1996, increases the air carrier’s Florida workforce
44 by more than 1000 percent and by 250 or more full-time
45 equivalent employee positions, may receive a credit or refund as
46 the ultimate vendor of the aviation fuel for the 6.9 cents
47 excise tax previously paid, provided that the air carrier has no
48 facility for fueling highway vehicles from the tank in which the
49 aviation fuel is stored. In calculating the new or additional
50 Florida full-time equivalent employee positions, any full-time
51 equivalent employee positions of parent or subsidiary
52 corporations which existed before January 1, 1996, shall not be
53 counted toward reaching the Florida employment increase
54 thresholds.
55
56 The refund allowed under this paragraph is in furtherance of the
57 goals and policies of the State Comprehensive Plan set forth in
58 s. 187.201(16)(a), (b)1., 2., (17)(a), (b)1., 4., (19)(a),
59 (b)5., (21)(a), (b)1., 2., 4., 7., 9., and 12.
60 (c) If, before July 1, 2001, the number of full-time
61 equivalent employee positions created or added to the air
62 carrier’s Florida workforce falls below 250, the exemption
63 granted pursuant to this section shall not apply during the
64 period in which the air carrier has fewer than the 250
65 additional employees.
66 (d) The exemption taken by credit or refund pursuant to
67 paragraph (b) applies shall apply only under the terms and
68 conditions set forth therein. If any part of that paragraph is
69 judicially declared to be unconstitutional or invalid, the
70 validity of any provisions taxing aviation fuel shall not be
71 affected and all fuel exempted pursuant to paragraph (b) shall
72 be subject to tax as if the exemption was never enacted. Every
73 person benefiting from such exemption shall be liable for and
74 make payment of all taxes for which a credit or refund was
75 granted.
76 (2)(a) An excise tax of 5.4 6.9 cents per gallon is imposed
77 on each gallon of kerosene in the same manner as prescribed for
78 diesel fuel under ss. 206.87(2) and 206.872.
79 (3) An excise tax of 5.4 6.9 cents per gallon is imposed on
80 each gallon of aviation gasoline in the manner prescribed by
81 paragraph (2)(a). However, the exemptions allowed by paragraph
82 (2)(b) do not apply to aviation gasoline.
83 (4) Any licensed wholesaler or terminal supplier that
84 delivers undyed kerosene to a residence for home heating or
85 cooking may receive a credit or refund as the ultimate vendor of
86 the kerosene for the 5.4 6.9 cents excise tax previously paid.
87 (5) Any licensed wholesaler or terminal supplier that
88 delivers undyed kerosene to a retail dealer not licensed as a
89 wholesaler or terminal supplier for sale as a home heating or
90 cooking fuel may receive a credit or refund as the ultimate
91 vendor of the kerosene for the 5.4 6.9 cents excise tax
92 previously paid, provided the retail dealer has no facility for
93 fueling highway vehicles from the tank in which the kerosene is
94 stored.
95 Section 2. The Department of Economic Opportunity shall
96 conduct a study of intrastate commercial air service and flight
97 training and education and develop recommendations for policies
98 that are likely to improve the quality of such service,
99 training, and education. The study must include an analysis of
100 historic trends in intrastate commercial air service and must
101 identify factors that have affected prices and the frequency of
102 flights between destinations in this state. The study must also
103 compare the incentives provided by this state to the commercial
104 airline industry, generally, and to specific air carriers with
105 similar incentives that have been provided by other states and
106 must evaluate the effect that these incentives have had on
107 commercial air service in this state and other states. The
108 department shall submit a report on the study to the Governor,
109 the President of the Senate, and the Speaker of the House of
110 Representatives on or before November 13, 2015.
111 Section 3.
112