This 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. The bill specifies that the sales 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 used solely for transporting air cargo, passengers, or a combination of both. Additionally, it clarifies that the tax exemption extends to parts and materials affixed to such aircraft, while excluding shop equipment or fuel.

The bill also removes certain conditions previously required for tax exemptions, such as the stipulation that the aircraft must leave the state within 15 days after certain actions are completed. Furthermore, it introduces new definitions for terms like "aircraft," "customization," and "registered in this state," while also updating references to the Federal Aviation Administration. The enactment of this bill is intended to take effect 90 days after it is signed into law, and it includes a provision for the legislature to appropriate funds to compensate for any revenue loss to the state school aid fund resulting from these changes.

Statutes affected:
House Introduced Bill: 205.54