Bill Text: FL S0858 | 2010 | Regular Session | Comm Sub


Bill Title: Sales Tax/Fractional Aircraft Ownership Program [WPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Policy & Steering Committee on Ways and Means, companion bill(s) passed, see CS/SB 1752 (Ch. 2010-147) [S0858 Detail]

Download: Florida-2010-S0858-Comm_Sub.html
 
Florida Senate - 2010                              CS for SB 858 
 
By the Committee on Commerce; and Senator Altman 
577-04362-10                                           2010858c1 
1                        A bill to be entitled 
2         An act relating to the tax on sales, use, and other 
3         transactions; amending s. 212.02, F.S.; defining the 
4         term “fractional aircraft ownership program”; amending 
5         s. 212.08, F.S.; providing tax exemptions on the sale 
6         or use of aircraft primarily used in a fractional 
7         aircraft ownership program and for the parts and labor 
8         used in the maintenance, repair, and overhaul of such 
9         aircraft; creating s. 212.0597, F.S.; providing a 
10         maximum tax on the sale or use of fractional aircraft 
11         ownership interests; providing an effective date. 
12 
13         WHEREAS, Florida has identified aviation and aerospace as 
14  industries suitable for economic development, and 
15         WHEREAS, Florida has determined that the synergy in the 
16  space, aerospace, and aviation industries attracts the world’s 
17  leading businesses to the state, and 
18         WHEREAS, Florida employs approximately 80,000 people in the 
19  aviation and aerospace industries at an average annual wage of 
20  $52,000, and 
21         WHEREAS, Florida has the third-largest aviation 
22  maintenance, repair, and overhaul cluster in the United States 
23  and has strategies directed toward expanding these aviation 
24  support services, and 
25         WHEREAS, Florida intends to remain competitive with other 
26  states as additional innovative commercial air transportation 
27  products are developed, NOW, THEREFORE, 
28 
29  Be It Enacted by the Legislature of the State of Florida: 
30 
31         Section 1. Subsection (34) is added to section 212.02, 
32  Florida Statutes, to read: 
33         212.02 Definitions.—The following terms and phrases when 
34  used in this chapter have the meanings ascribed to them in this 
35  section, except where the context clearly indicates a different 
36  meaning: 
37         (34)“Fractional aircraft ownership program” means a 
38  program that meets the requirements of 14 C.F.R part 91, subpart 
39  K, relating to fractional ownership operations, except that the 
40  program must include a minimum of 25 aircraft owned or leased by 
41  the program manager and used in the program. 
42         Section 2. Paragraph (ggg) is added to subsection (7) of 
43  section 212.08, Florida Statutes, to read: 
44         212.08 Sales, rental, use, consumption, distribution, and 
45  storage tax; specified exemptions.—The sale at retail, the 
46  rental, the use, the consumption, the distribution, and the 
47  storage to be used or consumed in this state of the following 
48  are hereby specifically exempt from the tax imposed by this 
49  chapter. 
50         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any 
51  entity by this chapter do not inure to any transaction that is 
52  otherwise taxable under this chapter when payment is made by a 
53  representative or employee of the entity by any means, 
54  including, but not limited to, cash, check, or credit card, even 
55  when that representative or employee is subsequently reimbursed 
56  by the entity. In addition, exemptions provided to any entity by 
57  this subsection do not inure to any transaction that is 
58  otherwise taxable under this chapter unless the entity has 
59  obtained a sales tax exemption certificate from the department 
60  or the entity obtains or provides other documentation as 
61  required by the department. Eligible purchases or leases made 
62  with such a certificate must be in strict compliance with this 
63  subsection and departmental rules, and any person who makes an 
64  exempt purchase with a certificate that is not in strict 
65  compliance with this subsection and the rules is liable for and 
66  shall pay the tax. The department may adopt rules to administer 
67  this subsection. 
68         (ggg)Fractional aircraft ownership programs.—The sale or 
69  use of aircraft primarily used in a fractional aircraft 
70  ownership program, and any parts or labor used in the 
71  completion, maintenance, repair, or overhaul of such aircraft. 
72  The exemption is not allowed unless the program manager of the 
73  fractional aircraft ownership program furnishes the dealer with 
74  a certificate stating that the lease, purchase, repair, or 
75  maintenance is for aircraft primarily used in a fractional 
76  aircraft ownership program and that the program manager 
77  qualifies for the exemption. If a program manager makes tax 
78  exempt purchases on a continual basis, the program manager may 
79  allow the dealer to keep the certificate on file. The program 
80  manager must inform a dealer that keeps the certificate on file 
81  if the program manager no longer qualifies for the exemption. 
82  The department may adopt rules to administer this paragraph, 
83  including rules determining the format of the certificate. 
84         Section 3. Section 212.0597, Florida Statutes, is created 
85  to read: 
86         212.0597Maximum tax on fractional aircraft ownership 
87  interests.—The maximum tax imposed under this chapter, including 
88  any discretionary sales surtax under s. 212.055, is limited to 
89  $300 on the sale or use in this state of a fractional ownership 
90  interest in aircraft pursuant to a fractional aircraft ownership 
91  program. The tax applies to the total consideration paid for the 
92  fractional ownership interest, including any amounts paid by the 
93  fractional owner as monthly management or maintenance fees. The 
94  tax applies only if the fractional ownership interest is sold by 
95  or to the program manager of the fractional aircraft ownership 
96  program, or if the fractional ownership interest is transferred 
97  upon the approval of the program manager of the fractional 
98  aircraft ownership program. 
99         Section 4. This act shall take effect July 1, 2010. 
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