| 1 | The Commerce Council recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to an exemption from the tax on sales, |
| 7 | use, and other transactions; amending s. 212.02, F.S.; |
| 8 | defining the term "qualified aircraft"; amending s. |
| 9 | 212.08, F.S.; including qualified aircraft under certain |
| 10 | miscellaneous exemption provisions relating to aircraft; |
| 11 | exempting certain advertising materials distributed free |
| 12 | of charge by mail in an envelope; creating s. 212.0801, |
| 13 | F.S.; providing criteria, requirements, and limitations |
| 14 | on exemptions for purchases or leases of qualified |
| 15 | aircraft; providing an effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Subsection (33) is added to section 212.02, |
| 20 | Florida Statutes, to read: |
| 21 | 212.02 Definitions.--The following terms and phrases when |
| 22 | used in this chapter have the meanings ascribed to them in this |
| 23 | section, except where the context clearly indicates a different |
| 24 | meaning: |
| 25 | (33) "Qualified aircraft" means any aircraft having a maximum |
| 26 | certified takeoff weight of less than 10,000 pounds and equipped |
| 27 | with twin turbofan engines that meet Stage IV noise requirements |
| 28 | that is used by a business operating as an on-demand air carrier |
| 29 | under Federal Aviation Administration Regulation Title 14, chapter |
| 30 | I, part 135, Code of Federal Regulations, that owns and operates a |
| 31 | fleet of at least 25 of such aircraft in this state. |
| 32 | Section 2. Paragraphs (ee), (rr), and (ss) of subsection |
| 33 | (7) of section 212.08, Florida Statutes, are amended, and |
| 34 | paragraph (ccc) is added to that subsection, to read: |
| 35 | 212.08 Sales, rental, use, consumption, distribution, and |
| 36 | storage tax; specified exemptions.--The sale at retail, the |
| 37 | rental, the use, the consumption, the distribution, and the |
| 38 | storage to be used or consumed in this state of the following |
| 39 | are hereby specifically exempt from the tax imposed by this |
| 40 | chapter. |
| 41 | (7) MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any |
| 42 | entity by this chapter do not inure to any transaction that is |
| 43 | otherwise taxable under this chapter when payment is made by a |
| 44 | representative or employee of the entity by any means, |
| 45 | including, but not limited to, cash, check, or credit card, even |
| 46 | when that representative or employee is subsequently reimbursed |
| 47 | by the entity. In addition, exemptions provided to any entity by |
| 48 | this subsection do not inure to any transaction that is |
| 49 | otherwise taxable under this chapter unless the entity has |
| 50 | obtained a sales tax exemption certificate from the department |
| 51 | or the entity obtains or provides other documentation as |
| 52 | required by the department. Eligible purchases or leases made |
| 53 | with such a certificate must be in strict compliance with this |
| 54 | subsection and departmental rules, and any person who makes an |
| 55 | exempt purchase with a certificate that is not in strict |
| 56 | compliance with this subsection and the rules is liable for and |
| 57 | shall pay the tax. The department may adopt rules to administer |
| 58 | this subsection. |
| 59 | (ee) Aircraft repair and maintenance labor charges.--There |
| 60 | shall be exempt from the tax imposed by this chapter all labor |
| 61 | charges for the repair and maintenance of qualified aircraft, |
| 62 | aircraft of more than 15,000 pounds maximum certified takeoff |
| 63 | weight, and rotary wing aircraft of more than 10,000 pounds |
| 64 | maximum certified takeoff weight. Except as otherwise provided |
| 65 | in this chapter, charges for parts and equipment furnished in |
| 66 | connection with such labor charges are taxable. |
| 67 | (rr) Equipment used in aircraft repair and |
| 68 | maintenance.--There shall be exempt from the tax imposed by this |
| 69 | chapter replacement engines, parts, and equipment used in the |
| 70 | repair or maintenance of qualified aircraft, aircraft of more |
| 71 | than 15,000 pounds maximum certified takeoff weight, and rotary |
| 72 | wing aircraft of more than 10,300 pounds maximum certified |
| 73 | takeoff weight, when such parts or equipment are installed on |
| 74 | such aircraft that is being repaired or maintained in this |
| 75 | state. |
| 76 | (ss) Aircraft sales or leases.--The sale or lease of a |
| 77 | qualified aircraft or an aircraft of more than 15,000 pounds |
| 78 | maximum certified takeoff weight for use by a common carrier is |
| 79 | exempt from the tax imposed by this chapter. As used in this |
| 80 | paragraph, "common carrier" means an airline operating under |
| 81 | Federal Aviation Administration regulations contained in Title |
| 82 | 14, chapter I, part 121 or part 129 of the Code of Federal |
| 83 | Regulations. |
| 84 | (ccc) Advertising materials distributed free of charge by |
| 85 | mail in an envelope.--Likewise exempt are materials consisting |
| 86 | exclusively of advertisements, such as individual coupons or |
| 87 | other individual cards, sheets, or pages of printed advertising, |
| 88 | that are distributed free of charge by mail in an envelope for |
| 89 | 10 or more persons on a monthly, bimonthly, or other regular |
| 90 | basis. |
| 91 | Section 3. Section 212.0801, Florida Statutes, is created |
| 92 | to read: |
| 93 | 212.0801 Qualified aircraft exemption.--To be eligible to |
| 94 | receive an exemption under s. 212.08(7) for a qualified aircraft, a |
| 95 | purchaser or lessee must enter into a flight training and research |
| 96 | partnership with a technological university based in this state |
| 97 | that offers a doctoral program in aeronautical engineering and that |
| 98 | offers flight training through a school of aeronautics. No |
| 99 | exemption provided in this chapter for the lease, purchase, repair, |
| 100 | or maintenance of a qualified aircraft shall be allowed unless the |
| 101 | purchaser or lessee furnishes the dealer with a certificate stating |
| 102 | that the lease, purchase, repair, or maintenance to be exempted is |
| 103 | for the exclusive use of the purchaser or lessee of a qualified |
| 104 | aircraft. If a purchaser or lessee makes tax-exempt purchases of |
| 105 | qualified aircraft or leases a qualified aircraft on a continual |
| 106 | basis, the purchaser or lessee may tender the certificate once |
| 107 | and allow the dealer to keep a certificate on file. The purchaser |
| 108 | or lessee shall inform the dealer that has a certificate on file |
| 109 | when the purchaser or lessee no longer qualifies for the |
| 110 | exemption. The department shall determine the format of the |
| 111 | certificate. |
| 112 | Section 4. This act shall take effect July 1, 2006. |