1-1 By: Madla S.B. No. 833
1-2 (In the Senate - Filed March 1, 1995; March 1, 1995, read
1-3 first time and referred to Committee on Finance; April 28, 1995,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 10, Nays 0; April 28, 1995, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 833 By: Moncrief
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to application of the sales and use tax to certain
1-10 aircraft.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsections (a), (b), (d), and (e), Section
1-13 151.328, Tax Code, are amended to read as follows:
1-14 (a) Aircraft are exempted from the taxes imposed by this
1-15 chapter if:
1-16 (1) sold to a person using the aircraft as a
1-17 certificated or licensed carrier of persons or property;
1-18 (2) sold to a person who:
1-19 (A) has a sales tax permit issued under this
1-20 chapter; and
1-21 (B) uses the aircraft <used> for the <exclusive>
1-22 purpose of providing flight <training or instructing pilots in a
1-23 licensed course of> instruction that is:
1-24 (i) recognized by the Federal Aviation
1-25 Administration;
1-26 (ii) under the direct or general
1-27 supervision of a flight instructor certified by the Federal
1-28 Aviation Administration; and
1-29 (iii) designed to lead to a pilot
1-30 certificate or rating issued by the Federal Aviation Administration
1-31 or otherwise required by a rule or regulation of the Federal
1-32 Aviation Administration;
1-33 (3) sold to a foreign government; or
1-34 (4) sold to a person for use and registration in
1-35 another state or nation before any use in this state other than
1-36 flight training in the aircraft and the transportation of the
1-37 aircraft out of this state.
1-38 (b) Repair, remodeling, and maintenance services to
1-39 aircraft, including an engine or other component part of aircraft,
1-40 operated by a person described by Subsection (a)(1) or (a)(2)
1-41 <certificated or licensed carrier of persons or property or to an
1-42 engine or other component part of an aircraft operated by a
1-43 certificated or licensed carrier of persons or property> are
1-44 exempted from the taxes imposed by this chapter.
1-45 (d) Machinery, tools, supplies, and equipment used or
1-46 consumed exclusively in the repair, remodeling, or maintenance of
1-47 aircraft, aircraft engines, or aircraft component parts by or on
1-48 behalf of a person described by Subsection (a)(1) or (a)(2)
1-49 <certificated or licensed carrier of persons or property> are
1-50 exempted from the taxes imposed by this chapter.
1-51 (e) Tangible personal property that is permanently affixed
1-52 or attached as a component part of an aircraft owned or operated by
1-53 a person described by Subsection (a)(1) or (a)(2), or that is
1-54 necessary for the normal operations of the aircraft and is pumped,
1-55 poured, or otherwise placed in the aircraft, <certificated or
1-56 licensed carrier of persons or property> is exempted from the taxes
1-57 imposed by this chapter.
1-58 SECTION 2. (a) This Act takes effect on the first day of
1-59 the first calendar quarter beginning on or after the date that it
1-60 may take effect under Section 39, Article III, Texas Constitution.
1-61 (b) The change in law made by this Act does not affect taxes
1-62 imposed before the effective date of this Act, and the law in
1-63 effect before the effective date of this Act is continued in effect
1-64 for purposes of the liability for and collection of those taxes.
1-65 SECTION 3. The importance of this legislation and the
1-66 crowded condition of the calendars in both houses create an
1-67 emergency and an imperative public necessity that the
1-68 constitutional rule requiring bills to be read on three several
2-1 days in each house be suspended, and this rule is hereby suspended,
2-2 and that this Act take effect and be in force according to its
2-3 terms, and it is so enacted.
2-4 * * * * *