Bill Text: MI SB0625 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Sales tax; exemptions; tax incentive for sale of aircraft and aircraft components manufactured in Michigan; provide for. Amends sec. 4x of 1933 PA 167 (MCL 205.54x).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-06-04 - Referred To Committee On Finance [SB0625 Detail]

Download: Michigan-2009-SB0625-Introduced.html

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SENATE BILL No. 625

 

 

June 4, 2009, Introduced by Senator BARCIA and referred to the Committee on Finance.

 

 

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

by amending section 4x (MCL 205.54x), as amended by 2006 PA 17.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4x. (1) A sale to a domestic air carrier of 1 or more of

 

the following is exempt from the tax under this act:

 

     (a) An aircraft that has a maximum certificated takeoff weight

 

of at least 6,000 pounds for use solely in the transport of air

 

cargo, passengers, or a combination of air cargo and passengers.

 

     (b) Parts and materials, excluding shop equipment or fuel,

 

affixed or to be affixed to an aircraft that has a maximum

 

certificated takeoff weight of at least 6,000 pounds for use solely

 

in the transport of air cargo, passengers, or a combination of air

 

cargo and passengers.

 

     (2) The tax levied under this act does not apply to the sale

 

of parts or materials, excluding shop equipment or fuel, affixed or

 

to be affixed to an aircraft that meets all of the following

 

conditions:

 

     (a) The aircraft leaves this state within 15 days after the

 

sooner of the issuance of the final billing or authorized approval

 

for final return to service, completion of the maintenance record

 

entry, and completion of the test flight and ground test for

 

inspection as required under 14 CFR 91.407.

 

     (b) The aircraft was not based in this state or registered in

 

this state before the parts or materials are affixed to the

 

aircraft and the aircraft is not based in this state or registered

 

in this state after the parts or materials are affixed to the

 

aircraft.

 

     (3) The tax levied under this act does not apply to the sale

 

of an aircraft temporarily located in this state for the purpose of

 

prepurchase evaluation, or the purpose of prepurchase evaluation

 

and postsale customization, or sale if all of the following

 

conditions are satisfied:

 

     (a) The aircraft leaves this state within 15 days after

 

authorized approval for final return to service, completion of the

 

maintenance record entry, and completion of the test flight and

 

ground test for inspection as required under 14 CFR 91.407

 

completion of the prepurchase evaluation, customization, or sale or

 

the completion of any improvement, maintenance, or repair that is

 

associated with the sale, whichever is later.

 

     (b) The aircraft was not based in this state or registered in

 

this state before the prepurchase evaluation, or prepurchase

 

evaluation and postsale customization, are or sale is completed and

 

the aircraft is not based in this state or registered in this state

 

after the prepurchase evaluation, or prepurchase evaluation and

 

postsale customization, are or sale is completed.

 

     (4) A sale of an aircraft to a person for subsequent lease to

 

a domestic air carrier operating under a certificate issued by the

 

federal aviation administration under 14 CFR 121, for use solely in

 

the regularly scheduled transport of passengers is exempt from the

 

tax under this act.

 

     (5) As used in this section:

 

     (a) "Based in this state" means hangared or stored in this

 

state for not less than 10 days in not less than 3 nonconsecutive

 

months during the immediately preceding 12-month period.

 

     (b) "Customization" means any improvement, maintenance, or

 

repair that is performed on an aircraft that is associated with the

 

sale of the aircraft.

 

     (c) (b) "Domestic air carrier" is limited to entities engaged

 

primarily in the commercial transport for hire of air cargo,

 

passengers, or a combination of air cargo and passengers as a

 

business activity.

 

     (d) (c) "Prepurchase evaluation" means an examination of an

 

aircraft to provide a potential purchaser with information relevant

 

to the potential purchase.

 

     (d) "Postsale customization" means any improvement,

 

maintenance, or repair that is performed on an aircraft following a

 

transfer of ownership of the aircraft.

 

     (e) "Registered in this state" means an aircraft registered

 

with the state transportation department, bureau of aeronautics or

 

registered with the federal aviation administration to an address

 

located in this state.