Bill Text: FL S0858 | 2010 | Regular Session | Introduced

Florida Senate Bill 858 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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-Introduced.html

 
Florida Senate - 2010                                     SB 858 
 
By Senator Altman 
24-00268-10                                            2010858__ 
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  business or affiliated group, as defined by s. 1504(a) of the 
41  Internal Revenue Code, must own or lease a minimum of 25 
42  aircraft. Such aircraft must be used in the fractional aircraft 
43  ownership program providing the program. 
44         Section 2. Paragraph (ggg) is added to subsection (7) of 
45  section 212.08, Florida Statutes, to read: 
46         212.08 Sales, rental, use, consumption, distribution, and 
47  storage tax; specified exemptions.—The sale at retail, the 
48  rental, the use, the consumption, the distribution, and the 
49  storage to be used or consumed in this state of the following 
50  are hereby specifically exempt from the tax imposed by this 
51  chapter. 
52         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any 
53  entity by this chapter do not inure to any transaction that is 
54  otherwise taxable under this chapter when payment is made by a 
55  representative or employee of the entity by any means, 
56  including, but not limited to, cash, check, or credit card, even 
57  when that representative or employee is subsequently reimbursed 
58  by the entity. In addition, exemptions provided to any entity by 
59  this subsection do not inure to any transaction that is 
60  otherwise taxable under this chapter unless the entity has 
61  obtained a sales tax exemption certificate from the department 
62  or the entity obtains or provides other documentation as 
63  required by the department. Eligible purchases or leases made 
64  with such a certificate must be in strict compliance with this 
65  subsection and departmental rules, and any person who makes an 
66  exempt purchase with a certificate that is not in strict 
67  compliance with this subsection and the rules is liable for and 
68  shall pay the tax. The department may adopt rules to administer 
69  this subsection. 
70         (ggg) Fractional aircraft ownership programs.—The sale or 
71  use of aircraft primarily used in a fractional aircraft 
72  ownership program, and any parts or labor used in the 
73  completion, maintenance, repair, or overhaul of such aircraft. 
74  The exemption is not allowed unless the purchaser or lessee 
75  furnishes the dealer with a certificate stating that the lease, 
76  purchase, repair, or maintenance is for aircraft primarily used 
77  in a fractional aircraft ownership program and that the 
78  purchaser or lessee qualifies for the exemption. If a purchaser 
79  or lessee makes tax-exempt purchases on a continual basis, the 
80  purchaser or lessee may allow the dealer to keep the certificate 
81  on file. The purchaser or lessee must inform a dealer that keeps 
82  the certificate on file if the purchaser or lessee no longer 
83  qualifies for the exemption. The department shall adopt rules to 
84  administer this section, including rules determining the format 
85  of the certificate. 
86         Section 3. Section 212.0597, Florida Statutes, is created 
87  to read: 
88         212.0597 Maximum tax on fractional aircraft ownership 
89  interests.—The maximum tax imposed under this chapter, including 
90  any discretionary sales surtax under s. 212.055, is limited to 
91  $300 on the sale or use in this state of a fractional ownership 
92  interest in aircraft pursuant to a fractional aircraft ownership 
93  program. The tax applies to the total consideration paid for the 
94  fractional ownership interest, including any amounts paid by the 
95  fractional owner as monthly management or maintenance fees. The 
96  tax applies only if the fractional ownership interest is sold by 
97  or to the operator of the fractional aircraft ownership program, 
98  or if the fractional ownership interest is transferred upon the 
99  approval of the operator of the fractional aircraft ownership 
100  program. 
101         Section 4. This act shall take effect July 1, 2010.