The bill amends the Use Tax Act of 1937 by revising Section 4k to clarify the tax exemptions applicable to aircraft and related parts. It specifies that the tax does not apply to the use of an aircraft by a domestic air carrier if the aircraft has a maximum certificated takeoff weight of at least 6,000 pounds and is used solely for transporting air cargo, passengers, or a combination of both. Additionally, the bill removes previous conditions regarding the aircraft's weight and the circumstances under which parts and materials are exempt from tax, thereby broadening the scope of the exemption.

Furthermore, the bill updates definitions related to aircraft and their usage, including the terms "aircraft," "based in this state," and "customization." It also clarifies that the tax does not apply to the sale of parts or materials affixed to an aircraft, as well as to the sale of an aircraft temporarily located in the state under certain conditions. The bill includes provisions for the effective date of the amendments and expresses the legislature's intent to compensate for any revenue loss to the state school aid fund resulting from these changes.

Statutes affected:
House Introduced Bill: 205.94