HB 225

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"; creating
5	s. 212.0597, F.S.; providing a maximum tax on the sale
6	or use of fractional aircraft ownership interests;
7	amending s. 212.08, F.S.; providing tax exemptions on
8	the sale or use of aircraft primarily used in a
9	fractional aircraft ownership program and any parts
10	and labor used in the completion, maintenance, repair,
11	and overhaul of such aircraft; providing an effective
12	date.
13
14	WHEREAS, Florida has identified the aviation and aerospace
15	industries for economic development, and
16	WHEREAS, Florida has determined that the synergy in the
17	space, aerospace, and aviation industries attracts the world's
18	leading businesses to the state, and
19	WHEREAS, Florida employs approximately 80,000 people in the
20	aviation and aerospace industries at an average annual wage of
21	$52,000, and
22	WHEREAS, Florida has the third-largest aviation
23	maintenance, repair, and overhaul cluster in the United States
24	and has strategies directed toward expanding these aviation
25	support services, and
26	WHEREAS, Florida intends to remain competitive with other
27	states as additional innovative commercial air transportation
28	products are developed, NOW, THEREFORE,
29
30	Be It Enacted by the Legislature of the State of Florida:
31
32	Section 1.  Subsection (34) is added to section 212.02,
33	Florida Statutes, to read:
34	212.02  Definitions.--The following terms and phrases when
35	used in this chapter have the meanings ascribed to them in this
36	section, except where the context clearly indicates a different
37	meaning:
38	(34)  "Fractional aircraft ownership program" means a
39	program that meets the requirements of 14 C.F.R. part 91,
40	subpart K, relating to fractional ownership operations, except
41	the program must include a minimum of 25 aircraft owned or
42	leased by the business or affiliated group, as defined by s.
43	1504(a) of the Internal Revenue Code, providing the program.
44	Such aircraft must be used in the fractional aircraft ownership
45	program providing the program.
46	Section 2.  Section 212.0597, Florida Statutes, is created
47	to read:
48	212.0597  Maximum tax on fractional aircraft ownership
49	interests.--The tax imposed under this chapter, including any
50	discretionary sales surtax under s. 212.055, is limited to $300
51	on the sale or use in this state of a fractional ownership
52	interest in aircraft pursuant to a fractional aircraft ownership
53	program. This maximum tax applies to the total consideration
54	paid for the fractional ownership interest, including any
55	amounts paid by the fractional owner as monthly management or
56	maintenance fees. The maximum tax applies only if the fractional
57	ownership interest is sold by or to the operator of the
58	fractional aircraft ownership program or if the fractional
59	ownership interest is transferred upon the approval of the
60	operator of the fractional aircraft ownership program.
61	Section 3.  Paragraph (ggg) is added to subsection (7) of
62	section 212.08, Florida Statutes, to read:
63	212.08  Sales, rental, use, consumption, distribution, and
64	storage tax; specified exemptions.--The sale at retail, the
65	rental, the use, the consumption, the distribution, and the
66	storage to be used or consumed in this state of the following
67	are hereby specifically exempt from the tax imposed by this
68	chapter.
69	(7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any
70	entity by this chapter do not inure to any transaction that is
71	otherwise taxable under this chapter when payment is made by a
72	representative or employee of the entity by any means,
73	including, but not limited to, cash, check, or credit card, even
74	when that representative or employee is subsequently reimbursed
75	by the entity. In addition, exemptions provided to any entity by
76	this subsection do not inure to any transaction that is
77	otherwise taxable under this chapter unless the entity has
78	obtained a sales tax exemption certificate from the department
79	or the entity obtains or provides other documentation as
80	required by the department. Eligible purchases or leases made
81	with such a certificate must be in strict compliance with this
82	subsection and departmental rules, and any person who makes an
83	exempt purchase with a certificate that is not in strict
84	compliance with this subsection and the rules is liable for and
85	shall pay the tax. The department may adopt rules to administer
86	this subsection.
87	(ggg)  Fractional aircraft ownership programs.--Also exempt
88	from the tax imposed by this chapter is the sale or use of
89	aircraft primarily used in a fractional aircraft ownership
90	program and any parts or labor used in the completion,
91	maintenance, repair, or overhaul of such aircraft. The exemption
92	is not allowed unless the purchaser or lessee furnishes the
93	dealer with a certificate stating that the lease, purchase,
94	repair, or maintenance to be exempted is for aircraft primarily
95	used in a fractional aircraft ownership program and that the
96	purchaser or lessee qualifies for the exemption. If a purchaser
97	or lessee makes tax-exempt purchases on a continual basis, the
98	purchaser or lessee may allow the dealer to keep the certificate
99	on file. The purchaser or lessee must inform the dealer that has
100	the certificate on file if the purchaser or lessee no longer
101	qualifies for the exemption. The department shall determine the
102	format of the certificate.
103	Section 4.  This act shall take effect July 1, 2009.

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