Florida Senate - 2015                              CS for SB 722
       By the Committee on Finance and Tax; and Senator Flores
       593-03129-15                                           2015722c1
    1                        A bill to be entitled                      
    2         An act relating to aviation; amending s. 206.9825,
    3         F.S.; revising the tax rate of the excise tax on
    4         certain aviation fuels; revising the criteria to
    5         receive an excise tax exemption for certain aviation
    6         fuel delivered by licensed wholesalers or terminal
    7         suppliers; deleting obsolete language; requiring the
    8         Department of Economic Opportunity to conduct a study
    9         on specified issues relating to intrastate commercial
   10         air service and flight training and education;
   11         requiring the department to submit a report on the
   12         study to the Governor and the Legislature by a
   13         specified date; providing effective dates.
   15  Be It Enacted by the Legislature of the State of Florida:
   17         Section 1. Effective July 1, 2017, subsection (1),
   18  paragraph (a) of subsection (2), and subsections (3), (4), and
   19  (5) of section 206.9825, Florida Statutes, are amended to read:
   20         206.9825 Aviation fuel tax.—
   21         (1)(a) Except as otherwise provided in this part, an excise
   22  tax of 5.4 6.9 cents per gallon of aviation fuel is imposed upon
   23  every gallon of aviation fuel sold in this state, or brought
   24  into this state for use, upon which such tax has not been paid
   25  or the payment thereof has not been lawfully assumed by some
   26  person handling the same in this state. Fuel taxed pursuant to
   27  this part shall not be subject to the taxes imposed by ss.
   28  206.41(1)(d), (e), and (f) and 206.87(1)(b), (c), and (d).
   29         (b) A Any licensed wholesaler or terminal supplier may
   30  receive a credit or refund of the 5.4 cents excise tax paid by
   31  the wholesaler or supplier for aviation fuel that is delivered
   32  by the wholesaler or supplier delivers aviation fuel to any of
   33  the three an air carriers carrier offering transcontinental jet
   34  service and that has the greatest growth during a state fiscal
   35  year, beginning July 1, 2015, as determined by the following
   36  factors:
   37         1. The number of new jobs created in this state which are
   38  at or above this state’s average prevailing wage.
   39         2. Total capital investment in this state.
   40         3. The number of new routes established to or from this
   41  state.
   42         4. The number of ticket sales to or from this state, after
   43  January 1, 1996, increases the air carrier’s Florida workforce
   44  by more than 1000 percent and by 250 or more full-time
   45  equivalent employee positions, may receive a credit or refund as
   46  the ultimate vendor of the aviation fuel for the 6.9 cents
   47  excise tax previously paid, provided that the air carrier has no
   48  facility for fueling highway vehicles from the tank in which the
   49  aviation fuel is stored. In calculating the new or additional
   50  Florida full-time equivalent employee positions, any full-time
   51  equivalent employee positions of parent or subsidiary
   52  corporations which existed before January 1, 1996, shall not be
   53  counted toward reaching the Florida employment increase
   54  thresholds.
   56  The refund allowed under this paragraph is in furtherance of the
   57  goals and policies of the State Comprehensive Plan set forth in
   58  s. 187.201(16)(a), (b)1., 2., (17)(a), (b)1., 4., (19)(a),
   59  (b)5., (21)(a), (b)1., 2., 4., 7., 9., and 12.
   60         (c) If, before July 1, 2001, the number of full-time
   61  equivalent employee positions created or added to the air
   62  carrier’s Florida workforce falls below 250, the exemption
   63  granted pursuant to this section shall not apply during the
   64  period in which the air carrier has fewer than the 250
   65  additional employees.
   66         (d) The exemption taken by credit or refund pursuant to
   67  paragraph (b) applies shall apply only under the terms and
   68  conditions set forth therein. If any part of that paragraph is
   69  judicially declared to be unconstitutional or invalid, the
   70  validity of any provisions taxing aviation fuel shall not be
   71  affected and all fuel exempted pursuant to paragraph (b) shall
   72  be subject to tax as if the exemption was never enacted. Every
   73  person benefiting from such exemption shall be liable for and
   74  make payment of all taxes for which a credit or refund was
   75  granted.
   76         (2)(a) An excise tax of 5.4 6.9 cents per gallon is imposed
   77  on each gallon of kerosene in the same manner as prescribed for
   78  diesel fuel under ss. 206.87(2) and 206.872.
   79         (3) An excise tax of 5.4 6.9 cents per gallon is imposed on
   80  each gallon of aviation gasoline in the manner prescribed by
   81  paragraph (2)(a). However, the exemptions allowed by paragraph
   82  (2)(b) do not apply to aviation gasoline.
   83         (4) Any licensed wholesaler or terminal supplier that
   84  delivers undyed kerosene to a residence for home heating or
   85  cooking may receive a credit or refund as the ultimate vendor of
   86  the kerosene for the 5.4 6.9 cents excise tax previously paid.
   87         (5) Any licensed wholesaler or terminal supplier that
   88  delivers undyed kerosene to a retail dealer not licensed as a
   89  wholesaler or terminal supplier for sale as a home heating or
   90  cooking fuel may receive a credit or refund as the ultimate
   91  vendor of the kerosene for the 5.4 6.9 cents excise tax
   92  previously paid, provided the retail dealer has no facility for
   93  fueling highway vehicles from the tank in which the kerosene is
   94  stored.
   95         Section 2. The Department of Economic Opportunity shall
   96  conduct a study of intrastate commercial air service and flight
   97  training and education and develop recommendations for policies
   98  that are likely to improve the quality of such service,
   99  training, and education. The study must include an analysis of
  100  historic trends in intrastate commercial air service and must
  101  identify factors that have affected prices and the frequency of
  102  flights between destinations in this state. The study must also
  103  compare the incentives provided by this state to the commercial
  104  airline industry, generally, and to specific air carriers with
  105  similar incentives that have been provided by other states and
  106  must evaluate the effect that these incentives have had on
  107  commercial air service in this state and other states. The
  108  department shall submit a report on the study to the Governor,
  109  the President of the Senate, and the Speaker of the House of
  110  Representatives on or before November 13, 2015.
  111         Section 3.