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A BILL TO BE ENTITLED
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AN ACT
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relating to the sales and use taxation of aircraft. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle E, Title 2, Tax Code, is amended by |
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adding Chapter 163 to read as follows: |
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CHAPTER 163. SALES AND USE TAXATION OF AIRCRAFT |
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Sec. 163.001. CERTIFICATED OR LICENSED CARRIERS. (a) For |
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purposes of Chapter 151, "certificated or licensed carrier" means a |
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person authorized by the Federal Aviation Administration to operate |
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an aircraft to transport persons or property in compliance with the |
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certification and operations specifications requirements of 14 |
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C.F.R. Part 121, 125, 133, or 135. |
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(b) Section 151.328(a)(1) applies with respect to a |
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certificated carrier's acquisition of an aircraft, without regard |
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to whether the certificated carrier acquired the aircraft by |
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purchase, lease, or rental. |
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Sec. 163.002. RESALE OF AIRCRAFT. (a) For purposes of |
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Section 151.006, "sale for resale" includes the sale of an aircraft |
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to a purchaser who acquires the aircraft for the purpose of leasing, |
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renting, or reselling the aircraft to another person in the United |
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States of America or a possession or territory of the United States |
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of America or in the United Mexican States in the form or condition |
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in which it is acquired. |
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(b) The leasing or renting of an aircraft under Subsection |
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(a) includes the transfer of operational control of the aircraft |
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from a lessor to one or more lessees pursuant to one or more written |
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agreements in exchange for consideration, regardless of whether the |
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consideration is in the form of a cash payment and regardless of |
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whether the consideration is fixed, variable, or periodic. For |
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purposes of this subsection, "operational control" has the meaning |
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assigned by the Federal Aviation Regulations and includes the |
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exercise of authority over initiating, conducting, or terminating a |
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flight. |
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(c) Subsection (a) applies to a purchase of an aircraft |
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regardless of whether the purchaser, in addition to leasing, |
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renting, or reselling the aircraft to another person, also uses the |
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aircraft if, for a period of one year beginning on the date the |
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purchaser purchases the aircraft, more than 50 percent of the |
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aircraft's departures are made under the operational control of one |
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or more lessees pursuant to one or more written agreements as |
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described by Subsection (b). |
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(d) Section 151.154(a) does not apply to a purchaser of an |
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aircraft. |
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Sec. 163.003. USE OF AIRCRAFT. For purposes of the tax |
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imposed under Subchapter D, Chapter 151, an aircraft that is |
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brought into this state for the sole purpose of being completed, |
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repaired, remodeled, or restored is not brought into the state for |
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storage, use, or other consumption in this state. |
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Sec. 163.004. NO PRESUMPTION OF USE. For purposes of the |
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tax imposed under Subchapter D, Chapter 151, there is no |
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presumption that an aircraft was purchased for storage, use, or |
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consumption in this state if the person bringing the aircraft into |
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this state did not acquire the aircraft directly from a seller by |
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means of a purchase, as that term is defined by Section 151.005. |
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Sec. 163.005. NO IMPOSITION OF TAX FOLLOWING OUT-OF-STATE |
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USE. (a) No tax is imposed under Subchapter D, Chapter 151, with |
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respect to an aircraft that is brought into this state if the |
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aircraft is predominantly used outside of this state for a period of |
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one year beginning on the later of: |
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(1) the date the aircraft was acquired, whether by |
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purchase, lease, rental, or otherwise, by the person bringing the |
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aircraft into this state; or |
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(2) the date the aircraft: |
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(A) was substantially complete in the condition |
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for its intended use; and |
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(B) conducted its first flight for the carriage |
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of persons or property. |
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(b) For purposes of this section, an aircraft is |
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predominantly used outside of this state if more than 50 percent of |
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the aircraft's departures are from locations outside of this state. |
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Sec. 163.006. CERTAIN TRANSACTIONS BETWEEN RELATED |
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PERSONS. (a) For purposes of the tax imposed under Chapter 151, a |
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sale, lease, rental, or other transaction between a person and a |
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member, owner, or affiliate of the person involving an aircraft |
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that would not be subject to tax or would qualify for an exemption |
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from tax if the transaction were between unrelated persons remains |
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not subject to tax or exempt from tax to the same extent as if the |
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transaction were between unrelated persons. |
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(b) No tax is imposed under Chapter 151 with respect to the |
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use of an aircraft by an owner or member of the purchaser of the |
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aircraft, by an entity that is an affiliate of the purchaser of the |
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aircraft, or by an owner or member of an affiliate of the purchaser |
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of the aircraft if: |
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(1) with respect to the purchase of the aircraft, the |
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purchaser paid the tax imposed under Chapter 151; or |
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(2) the purchaser's purchase of the aircraft was |
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exempt from the tax imposed under Chapter 151, other than under: |
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(A) Section 151.302; or |
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(B) Section 151.304, unless the purchase would |
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have been exempt from tax under Section 151.304 if the owner, |
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member, affiliate, or owner or member of the affiliate who is using |
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the aircraft had been the purchaser. |
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(c) For purposes of this section, the term "affiliate" means |
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an entity that would be classified as a member of the purchaser's |
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affiliated group under Section 171.0001. |
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Sec. 163.007. AIRCRAFT OPERATED UNDER FRACTIONAL OWNERSHIP |
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PROGRAMS. No tax is imposed under Chapter 151 with respect to the |
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purchase, sale, or use of an aircraft that is operated pursuant to |
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14 C.F.R. Part 91, Subpart K. |
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Sec. 163.008. NO IMPOSITION OF TAX UNDER THIS CHAPTER. |
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Nothing in this chapter shall be construed to impose a tax. |
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Sec. 163.009. CONFLICTS WITH OTHER LAW. This chapter |
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controls over Chapter 151 to the extent of any conflict. |
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SECTION 2. This Act takes effect September 1, 2015. |