The bill amends the General Sales Tax Act of 1933 by revising the tax exemptions related to the sale of aircraft and associated parts to domestic air carriers. It specifies that the tax does not apply to the sale of an aircraft with a maximum certificated takeoff weight of at least 6,000 pounds if it is intended for the transport of air cargo, passengers, or a combination of both. Additionally, the bill clarifies that the tax exemption extends to parts and materials affixed to such aircraft, removing previous conditions that required the aircraft to leave the state within a certain timeframe and not be based or registered in the state before or after the sale.

Furthermore, the bill introduces new definitions for terms such as "aircraft," "customization," and "registered in this state," while also updating the definition of "domestic air carrier" to focus on entities primarily engaged in commercial transport for hire. The bill also includes a provision that a sale of an aircraft for subsequent lease to a domestic air carrier is exempt from tax, provided it is used solely for regularly scheduled passenger transport. The enactment of this bill is intended to take effect 90 days after it is signed into law, with a commitment from the legislature to compensate for any revenue loss to the state school aid fund resulting from these changes.

Statutes affected:
House Introduced Bill: 205.54