74R11335 CBH-D
By Rodriguez, et al. H.B. No. 1807
Substitute the following for H.B. No. 1807:
By Craddick C.S.H.B. No. 1807
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to application of the sales and use tax to certain
1-3 aircraft.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 151.328(a), (b), (d), and (e), Tax Code,
1-6 are amended to read as follows:
1-7 (a) Aircraft are exempted from the taxes imposed by this
1-8 chapter if:
1-9 (1) sold to a person using the aircraft as a
1-10 certificated or licensed carrier of persons or property;
1-11 (2) sold to a person who:
1-12 (A) has a sales tax permit issued under this
1-13 chapter; and
1-14 (B) uses the aircraft <used> for the <exclusive>
1-15 purpose of providing flight <training or instructing pilots in a
1-16 licensed course of> instruction that is:
1-17 (i) recognized by the Federal Aviation
1-18 Administration;
1-19 (ii) under the direct or general
1-20 supervision of a flight instructor certified by the Federal
1-21 Aviation Administration; and
1-22 (iii) designed to lead to a pilot
1-23 certificate or rating issued by the Federal Aviation Administration
1-24 or otherwise required by a rule or regulation of the Federal
2-1 Aviation Administration;
2-2 (3) sold to a foreign government; or
2-3 (4) sold to a person for use and registration in
2-4 another state or nation before any use in this state other than
2-5 flight training in the aircraft and the transportation of the
2-6 aircraft out of this state.
2-7 (b) Repair, remodeling, and maintenance services to
2-8 aircraft, including an engine or other component part of aircraft,
2-9 operated by a person described by Subsection (a)(1) or (a)(2)
2-10 <certificated or licensed carrier of persons or property or to an
2-11 engine or other component part of an aircraft operated by a
2-12 certificated or licensed carrier of persons or property> are
2-13 exempted from the taxes imposed by this chapter.
2-14 (d) Machinery, tools, supplies, and equipment used or
2-15 consumed exclusively in the repair, remodeling, or maintenance of
2-16 aircraft, aircraft engines, or aircraft component parts by or on
2-17 behalf of a person described by Subsection (a)(1) or (a)(2)
2-18 <certificated or licensed carrier of persons or property> are
2-19 exempted from the taxes imposed by this chapter.
2-20 (e) Tangible personal property that is permanently affixed
2-21 or attached as a component part of an aircraft owned or operated by
2-22 a person described by Subsection (a)(1) or (a)(2), or that is
2-23 necessary for the normal operations of the aircraft and is pumped,
2-24 poured, or otherwise placed in the aircraft, <certificated or
2-25 licensed carrier of persons or property> is exempted from the taxes
2-26 imposed by this chapter.
2-27 SECTION 2. (a) This Act takes effect on the first day of
3-1 the first calendar quarter beginning on or after the date that it
3-2 may take effect under Section 39, Article III, Texas Constitution.
3-3 (b) The change in law made by this Act does not affect taxes
3-4 imposed before the effective date of this Act, and the law in
3-5 effect before the effective date of this Act is continued in effect
3-6 for purposes of the liability for and collection of those taxes.
3-7 SECTION 3. The importance of this legislation and the
3-8 crowded condition of the calendars in both houses create an
3-9 emergency and an imperative public necessity that the
3-10 constitutional rule requiring bills to be read on three several
3-11 days in each house be suspended, and this rule is hereby suspended,
3-12 and that this Act take effect and be in force according to its
3-13 terms, and it is so enacted.