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 sale of parts or materials affixed to such aircraft is also exempt from the tax. The bill removes previous conditions that required the aircraft to leave the state within a certain timeframe and to not be based or registered in the state before or after the sale.

Furthermore, the bill clarifies definitions related to aircraft and domestic air carriers, ensuring that the terms are consistent with federal regulations. It also states that sales of aircraft intended for subsequent lease to domestic air carriers for scheduled passenger transport are exempt from the tax. The enactment of this bill is intended to take effect 90 days after it is signed into law, and there is 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:
Senate Introduced Bill: 205.54