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 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, it 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 the sale.

Furthermore, the bill introduces new definitions for terms such as "aircraft," "customization," and "registered in this state," while also updating the reference to the Federal Aviation Administration. It emphasizes that sales of aircraft intended for subsequent lease to domestic air carriers for passenger transport are also exempt from the tax. The enactment of this bill is intended to take effect 90 days after it is signed into law, with 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