SRC-TBR S.B. 1479 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1479
By: Madla
Finance
3/29/2001
As Filed


DIGEST AND PURPOSE 

Currently, the Tax Code provides an exemption from sales tax for machinery,
tools, supplies, and equipment used or consumed exclusively in the repair,
remodeling, or maintenance of aircraft, aircraft engines, or aircraft
component parts by or on behalf of a certified or licensed carrier or
certain persons who use the aircraft for providing flight instruction
recognized by the Federal Aviation Administration. As proposed, S.B. 1479
ensures that persons who repair and maintain United States Government
aircraft are eligible for the same exemption that is now available to
persons who repair and maintain commercial aircraft. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 151H, Section 151.328(d), Tax Code, to provide
that machinery, tools, supplies, and equipment used or consumed exclusively
in the repair, remodeling, or maintenance of aircraft, aircraft engines, or
aircraft component parts by or on behalf of a person described by
Subsection (a)(1) or (a)(2) or by Subsection (1), (2), or (3) of Section
151.309 are exempted from the taxes imposed by this chapter. 

SECTION 2.  Effective date: September 1, 2001.