By Madla S.B. No. 833
74R4426 CBH-F
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)-(e), Tax Code, are amended to
1-6 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 training or instructing pilots in flight <a licensed
1-16 course of> instruction recognized by the Federal Aviation
1-17 Administration and that is designed to lead to a pilot certificate
1-18 or rating issued by the Federal Aviation Administration;
1-19 (3) sold to a foreign government; or
1-20 (4) sold to a person for use and registration in
1-21 another state or nation before any use in this state other than
1-22 flight training in the aircraft and the transportation of the
1-23 aircraft out of this state.
1-24 (b) Repair, remodeling, and maintenance services to
2-1 aircraft, including an engine or other component part of aircraft,
2-2 operated by a person described by Subsection (a)(1) or (a)(2)
2-3 <certificated or licensed carrier of persons or property or to an
2-4 engine or other component part of an aircraft operated by a
2-5 certificated or licensed carrier of persons or property> are
2-6 exempted from the taxes imposed by this chapter.
2-7 (c) In this section, "aircraft" includes <does not include a
2-8 rocket or missile, but does include>:
2-9 (1) any device that is used or intended to be used for
2-10 flight in the air, other than a rocket or missile, and that is
2-11 intended to carry a person or cargo <a fixed wing, heavier-than-air
2-12 craft that is driven by propeller or jet and supported by the
2-13 dynamic reaction of the air against its wings;>
2-14 <(2) a helicopter>; and
2-15 (2) <(3)> an airplane flight simulator approved by the
2-16 Federal Aviation Administration for use as a <Phase II or higher>
2-17 flight or flight procedures simulator <under Appendix H, 14 C.F.R.
2-18 Part 121>.
2-19 (d) Machinery, tools, supplies, and equipment used or
2-20 consumed exclusively in the repair, remodeling, or maintenance of
2-21 aircraft, aircraft engines, or aircraft component parts by or on
2-22 behalf of a person described by Subsection (a)(1) or (a)(2)
2-23 <certificated or licensed carrier of persons or property> are
2-24 exempted from the taxes imposed by this chapter.
2-25 (e) Tangible personal property that is permanently affixed
2-26 or attached as a component part of an aircraft owned or operated by
2-27 a person described by Subsection (a)(1) or (a)(2), or that is
3-1 necessary for the normal operations of the aircraft and is pumped,
3-2 poured, or otherwise placed in the aircraft, <certificated or
3-3 licensed carrier of persons or property> is exempted from the taxes
3-4 imposed by this chapter.
3-5 SECTION 2. (a) This Act takes effect on the first day of
3-6 the first calendar quarter beginning on or after the date that it
3-7 may take effect under Section 39, Article III, Texas Constitution.
3-8 (b) The change in law made by this Act does not affect taxes
3-9 imposed before the effective date of this Act, and the law in
3-10 effect before the effective date of this Act is continued in effect
3-11 for purposes of the liability for and collection of those taxes.
3-12 SECTION 3. The importance of this legislation and the
3-13 crowded condition of the calendars in both houses create an
3-14 emergency and an imperative public necessity that the
3-15 constitutional rule requiring bills to be read on three several
3-16 days in each house be suspended, and this rule is hereby suspended,
3-17 and that this Act take effect and be in force according to its
3-18 terms, and it is so enacted.