Bill Text: TX HB3287 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to the sales and use taxation of aircraft.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-05-11 - Committee report sent to Calendars [HB3287 Detail]
Download: Texas-2015-HB3287-Comm_Sub.html
84R23693 BEF-F | |||
By: Paddie | H.B. No. 3287 | ||
Substitute the following for H.B. No. 3287: | |||
By: Wray | C.S.H.B. No. 3287 |
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relating to the sales and use taxation of aircraft. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by | ||
adding Chapter 163 to read as follows: | ||
CHAPTER 163. SALES AND USE TAXATION OF AIRCRAFT | ||
Sec. 163.001. CERTIFICATED OR LICENSED CARRIERS. (a) For | ||
purposes of Chapter 151, "certificated or licensed carrier" means a | ||
person authorized by the Federal Aviation Administration to operate | ||
an aircraft to transport persons or property in compliance with the | ||
certification and operations specifications requirements of 14 | ||
C.F.R. Part 121, 125, 133, or 135. | ||
(b) Section 151.328(a)(1) applies with respect to a | ||
certificated carrier's acquisition of an aircraft, without regard | ||
to whether the certificated carrier acquired the aircraft by | ||
purchase, lease, or rental. | ||
Sec. 163.002. RESALE OF AIRCRAFT. (a) For purposes of | ||
Section 151.006, "sale for resale" includes the sale of an aircraft | ||
to a purchaser who acquires the aircraft for the purpose of leasing, | ||
renting, or reselling the aircraft to another person in the United | ||
States of America or a possession or territory of the United States | ||
of America or in the United Mexican States in the form or condition | ||
in which it is acquired. | ||
(b) The leasing or renting of an aircraft under Subsection | ||
(a) includes the transfer of operational control of the aircraft | ||
from a lessor to one or more lessees pursuant to one or more written | ||
agreements in exchange for consideration, regardless of whether the | ||
consideration is in the form of a cash payment and regardless of | ||
whether the consideration is fixed, variable, or periodic. For | ||
purposes of this subsection, "operational control" has the meaning | ||
assigned by the Federal Aviation Regulations and includes the | ||
exercise of authority over initiating, conducting, or terminating a | ||
flight. | ||
(c) Subsection (a) applies to a purchase of an aircraft | ||
regardless of whether the purchaser, in addition to leasing, | ||
renting, or reselling the aircraft to another person, also uses the | ||
aircraft if, for a period of one year beginning on the date the | ||
purchaser purchases the aircraft, more than 50 percent of the | ||
aircraft's departures are made under the operational control of one | ||
or more lessees pursuant to one or more written agreements as | ||
described by Subsection (b). | ||
(d) Section 151.154(a) does not apply to a purchaser of an | ||
aircraft. | ||
Sec. 163.003. USE OF AIRCRAFT. For purposes of the tax | ||
imposed under Subchapter D, Chapter 151, an aircraft that is | ||
brought into this state for the sole purpose of being completed, | ||
repaired, remodeled, or restored is not brought into the state for | ||
storage, use, or other consumption in this state. | ||
Sec. 163.004. NO PRESUMPTION OF USE. For purposes of the | ||
tax imposed under Subchapter D, Chapter 151, there is no | ||
presumption that an aircraft was purchased for storage, use, or | ||
consumption in this state if the person bringing the aircraft into | ||
this state did not acquire the aircraft directly from a seller by | ||
means of a purchase, as that term is defined by Section 151.005. | ||
Sec. 163.005. NO IMPOSITION OF TAX FOLLOWING OUT-OF-STATE | ||
USE. (a) No tax is imposed under Subchapter D, Chapter 151, with | ||
respect to an aircraft that is brought into this state if the | ||
aircraft is predominantly used outside of this state for a period of | ||
one year beginning on the later of: | ||
(1) the date the aircraft was acquired, whether by | ||
purchase, lease, rental, or otherwise, by the person bringing the | ||
aircraft into this state; or | ||
(2) the date the aircraft: | ||
(A) was substantially complete in the condition | ||
for its intended use; and | ||
(B) conducted its first flight for the carriage | ||
of persons or property. | ||
(b) For purposes of this section, an aircraft is | ||
predominantly used outside of this state if more than 50 percent of | ||
the aircraft's departures are from locations outside of this state. | ||
Sec. 163.006. CERTAIN TRANSACTIONS BETWEEN RELATED | ||
PERSONS. (a) For purposes of the tax imposed under Chapter 151, a | ||
sale, lease, rental, or other transaction between a person and a | ||
member, owner, or affiliate of the person involving an aircraft | ||
that would not be subject to tax or would qualify for an exemption | ||
from tax if the transaction were between unrelated persons remains | ||
not subject to tax or exempt from tax to the same extent as if the | ||
transaction were between unrelated persons. | ||
(b) No tax is imposed under Chapter 151 with respect to the | ||
use of an aircraft by an owner or member of the purchaser of the | ||
aircraft, by an entity that is an affiliate of the purchaser of the | ||
aircraft, or by an owner or member of an affiliate of the purchaser | ||
of the aircraft if: | ||
(1) with respect to the purchase of the aircraft, the | ||
purchaser paid the tax imposed under Chapter 151; or | ||
(2) the purchaser's purchase of the aircraft was | ||
exempt from the tax imposed under Chapter 151, other than under: | ||
(A) Section 151.302; or | ||
(B) Section 151.304, unless the purchase would | ||
have been exempt from tax under Section 151.304 if the owner, | ||
member, affiliate, or owner or member of the affiliate who is using | ||
the aircraft had been the purchaser. | ||
(c) For purposes of this section, the term "affiliate" means | ||
an entity that would be classified as a member of the purchaser's | ||
affiliated group under Section 171.0001. | ||
Sec. 163.007. AIRCRAFT OPERATED UNDER FRACTIONAL OWNERSHIP | ||
PROGRAMS. No tax is imposed under Chapter 151 with respect to the | ||
purchase, sale, or use of an aircraft that is operated pursuant to | ||
14 C.F.R. Part 91, Subpart K. | ||
Sec. 163.008. NO IMPOSITION OF TAX UNDER THIS CHAPTER. | ||
Nothing in this chapter shall be construed to impose a tax. | ||
Sec. 163.009. CONFLICTS WITH OTHER LAW. This chapter | ||
controls over Chapter 151 to the extent of any conflict. | ||
SECTION 2. This Act takes effect September 1, 2015. |