LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 26, 1995
TO: Honorable John T. Montford, Chair IN RE: Senate Bill No. 833
Committee on Finance By: Madla
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
833 (Relating to application of the sales and use tax to certain
aircraft.) this office has determined the following:
This bill would amend the sales tax chapter of the Tax Code to
exempt from the sales tax the following:
a) aircraft sold to a person with a sales tax permit who would
use the aircraft for pilot training or instruction designed to
lead to a pilot certificate or rating issued by the Federal
Aviation Administration;
b) the repair, remodeling, and maintenance services to aircraft
operated by a certified or licensed carrier of persons or
property or by a person training pilots in flight instruction;
c) machinery, tools, supplies, and equipment used or consumed by
a certified or licensed carrier of persons or property or by a
person training pilots in flight instruction; and
d) tangible personal property that is permanently affixed or
attached as a component part, or that is necessary for the normal
operations of an aircraft, and is pumped, poured, or otherwise
placed in an aircraft owned or operated by a certified or
licensed carrier of persons or property or by a person training
pilots in flight instruction.
The bill would also change the definition of aircraft to include
lighter-than-air and unpowered craft and to include all flight
simulators and flight procedures simulators.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Revenue Probable Revenue Probable Revenue
Year Loss to General Loss to Cities Loss to MTAs
Revenue Fund 001
1996 $1,277,000 $206,000 $88,000
1997 1,597,000 258,000 110,000
1998 1,705,000 275,000 117,000
1999 1,821,000 294,000 125,000
2000 1,948,000 315,000 134,000
Fiscal Probable Revenue
Year Loss to
Counties/SPDs
1996 $24,000
1997 30,000
1998 32,000
1999 34,000
2000 36,000
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
Source: Comptroller of Public Accounts
LBB Staff: JK, SM, DF