CS/HB 445

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.; providing a
4	definition; amending s. 212.08, F.S.; exempting the sales
5	or use of certain aircraft, related construction,
6	maintenance, repair, and overhaul parts and labor, and
7	fractional aircraft ownership interests relating to a
8	fraction aircraft ownership program; providing
9	requirements and procedures for such exemption; providing
10	an effective date.
11
12	WHEREAS, Florida has identified aviation and aerospace as a
13	targeted industry for economic development purposes, and
14	WHEREAS, Florida has determined that the synergy in the
15	space, aerospace, and aviation industries attracts the world's
16	leading businesses to this state, and
17	WHEREAS, Florida employs approximately 80,000 people in the
18	aviation and aerospace industries at an average annual wage of
19	approximately $52,000, and
20	WHEREAS, Florida has the third largest aviation
21	maintenance, repair, and overhaul cluster in the United States
22	and has focused strategies for expanding these aviation support
23	services, and
24	WHEREAS, Florida intends to remain competitive with other
25	states as additional innovative commercial air transportation
26	products are developed, NOW, THEREFORE,
27
28	Be It Enacted by the Legislature of the State of Florida:
29
30	Section 1.  Subsection (34) is added to section 212.02,
31	Florida Statutes, to read:
32	212.02  Definitions.--The following terms and phrases when
33	used in this chapter have the meanings ascribed to them in this
34	section, except where the context clearly indicates a different
35	meaning:
36	(34)  "Fractional aircraft ownership program" means a
37	program that meets the requirements set forth in Federal
38	Aviation Administration Regulation Title 14, chapter I, part 91,
39	subpart K, C.F.R., except that the program must include a
40	minimum of 25 aircraft owned or leased by the business or
41	affiliated group providing the program.
42	Section 2.  Subsection (19) is added to section 212.08,
43	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	(19)  FRACTIONAL AIRCRAFT OWNERSHIP PROGRAMS.--Also exempt
51	from the tax imposed by this chapter is the sale or use of:
52	(a)  Aircraft for primary use in a fractional aircraft
53	ownership program.
54	(b)  Any parts or labor used in the completion,
55	maintenance, repair, or overhaul of aircraft for primary use in
56	a fractional aircraft ownership program.
57	(c)  A fractional ownership interest in aircraft pursuant
58	to a fractional aircraft ownership program, including amounts
59	paid by the fractional owner as monthly management or
60	maintenance fees.
61
62	The exemptions provided in paragraphs (a) and (b) are allowed
63	only if the purchaser or lessee furnishes to the dealer a
64	certificate stating that the lease, purchase, repair, or
65	maintenance to be exempted is for the exclusive use of the
66	purchaser or lessee and that the purchaser or lessee otherwise
67	qualifies for the exemption as provided in this subsection. If a
68	purchaser or lessee makes tax-exempt purchases on a continual
69	basis, the purchaser or lessee may tender the certificate to the
70	dealer once and allow the dealer to keep the certificate on
71	file. The purchaser or lessee shall inform the dealer that has a
72	certificate of the purchaser or lessee on file when the
73	purchaser or lessee no longer qualifies for the exemption. The
74	department shall determine the format of the certificate.
75	Section 3.  This act shall take effect July 1, 2007.

CODING: Words stricken are deletions; words underlined are additions.