By: Madla S.B. No. 833
A BILL TO BE ENTITLED
AN ACT
1-1 relating to application of the sales and use tax to certain
1-2 aircraft.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsections (a), (b), (d), and (e), Section
1-5 151.328, Tax Code, are amended to read as follows:
1-6 (a) Aircraft are exempted from the taxes imposed by this
1-7 chapter if:
1-8 (1) sold to a person using the aircraft as a
1-9 certificated or licensed carrier of persons or property;
1-10 (2) sold to a person who:
1-11 (A) has a sales tax permit issued under this
1-12 chapter; and
1-13 (B) uses the aircraft <used> for the <exclusive>
1-14 purpose of providing flight <training or instructing pilots in a
1-15 licensed course of> instruction that is:
1-16 (i) recognized by the Federal Aviation
1-17 Administration;
1-18 (ii) under the direct or general
1-19 supervision of a flight instructor certified by the Federal
1-20 Aviation Administration; and
1-21 (iii) designed to lead to a pilot
1-22 certificate or rating issued by the Federal Aviation Administration
1-23 or otherwise required by a rule or regulation of the Federal
1-24 Aviation Administration;
2-1 (3) sold to a foreign government; or
2-2 (4) sold to a person for use and registration in
2-3 another state or nation before any use in this state other than
2-4 flight training in the aircraft and the transportation of the
2-5 aircraft out of this state.
2-6 (b) Repair, remodeling, and maintenance services to
2-7 aircraft, including an engine or other component part of aircraft,
2-8 operated by a person described by Subsection (a)(1) or (a)(2)
2-9 <certificated or licensed carrier of persons or property or to an
2-10 engine or other component part of an aircraft operated by a
2-11 certificated or licensed carrier of persons or property> are
2-12 exempted from the taxes imposed by this chapter.
2-13 (d) Machinery, tools, supplies, and equipment used or
2-14 consumed exclusively in the repair, remodeling, or maintenance of
2-15 aircraft, aircraft engines, or aircraft component parts by or on
2-16 behalf of a person described by Subsection (a)(1) or (a)(2)
2-17 <certificated or licensed carrier of persons or property> are
2-18 exempted from the taxes imposed by this chapter.
2-19 (e) Tangible personal property that is permanently affixed
2-20 or attached as a component part of an aircraft owned or operated by
2-21 a person described by Subsection (a)(1) or (a)(2), or that is
2-22 necessary for the normal operations of the aircraft and is pumped,
2-23 poured, or otherwise placed in the aircraft, <certificated or
2-24 licensed carrier of persons or property> is exempted from the taxes
2-25 imposed by this chapter.
2-26 SECTION 2. (a) This Act takes effect on the first day of
2-27 the first calendar quarter beginning on or after the date that it
3-1 may take effect under Section 39, Article III, Texas Constitution.
3-2 (b) The change in law made by this Act does not affect taxes
3-3 imposed before the effective date of this Act, and the law in
3-4 effect before the effective date of this Act is continued in effect
3-5 for purposes of the liability for and collection of those taxes.
3-6 SECTION 3. The importance of this legislation and the
3-7 crowded condition of the calendars in both houses create an
3-8 emergency and an imperative public necessity that the
3-9 constitutional rule requiring bills to be read on three several
3-10 days in each house be suspended, and this rule is hereby suspended,
3-11 and that this Act take effect and be in force according to its
3-12 terms, and it is so enacted.