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 parts and materials affixed to an aircraft owned or used by a domestic air carrier, provided 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 usage, streamlining the criteria for tax exemption.

Furthermore, the bill eliminates certain conditions that previously restricted tax exemptions for aircraft temporarily located in Michigan for sale and related evaluations. It also introduces new definitions for terms such as "aircraft," "customization," and "qualified truck," while clarifying the meaning of "registered in this state." The amendments aim to simplify the tax code and ensure that the state school aid fund is compensated for any revenue losses resulting from these changes. The bill is set to take effect 90 days after being enacted into law, contingent upon the passage of another related Senate Bill.

Statutes affected:
Senate Introduced Bill: 205.94