Florida Senate - 2010                                     SB 858
       By Senator Altman
       24-00268-10                                            2010858__
    1                        A bill to be entitled                      
    2         An act relating to the tax on sales, use, and other
    3         transactions; amending s. 212.02, F.S.; defining the
    4         term “fractional aircraft ownership program”; amending
    5         s. 212.08, F.S.; providing tax exemptions on the sale
    6         or use of aircraft primarily used in a fractional
    7         aircraft ownership program and for the parts and labor
    8         used in the maintenance, repair, and overhaul of such
    9         aircraft; creating s. 212.0597, F.S.; providing a
   10         maximum tax on the sale or use of fractional aircraft
   11         ownership interests; providing an effective date.
   13         WHEREAS, Florida has identified aviation and aerospace as
   14  industries suitable for economic development, and
   15         WHEREAS, Florida has determined that the synergy in the
   16  space, aerospace, and aviation industries attracts the world’s
   17  leading businesses to the state, and
   18         WHEREAS, Florida employs approximately 80,000 people in the
   19  aviation and aerospace industries at an average annual wage of
   20  $52,000, and
   21         WHEREAS, Florida has the third-largest aviation
   22  maintenance, repair, and overhaul cluster in the United States
   23  and has strategies directed toward expanding these aviation
   24  support services, and
   25         WHEREAS, Florida intends to remain competitive with other
   26  states as additional innovative commercial air transportation
   27  products are developed, NOW, THEREFORE,
   29  Be It Enacted by the Legislature of the State of Florida:
   31         Section 1. Subsection (34) is added to section 212.02,
   32  Florida Statutes, to read:
   33         212.02 Definitions.—The following terms and phrases when
   34  used in this chapter have the meanings ascribed to them in this
   35  section, except where the context clearly indicates a different
   36  meaning:
   37         (34)“Fractional aircraft ownership program” means a
   38  program that meets the requirements of 14 C.F.R part 91, subpart
   39  K, relating to fractional ownership operations, except that the
   40  business or affiliated group, as defined by s. 1504(a) of the
   41  Internal Revenue Code, must own or lease a minimum of 25
   42  aircraft. Such aircraft must be used in the fractional aircraft
   43  ownership program providing the program.
   44         Section 2. Paragraph (ggg) is added to subsection (7) of
   45  section 212.08, Florida Statutes, to read:
   46         212.08 Sales, rental, use, consumption, distribution, and
   47  storage tax; specified exemptions.—The sale at retail, the
   48  rental, the use, the consumption, the distribution, and the
   49  storage to be used or consumed in this state of the following
   50  are hereby specifically exempt from the tax imposed by this
   51  chapter.
   52         (7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any
   53  entity by this chapter do not inure to any transaction that is
   54  otherwise taxable under this chapter when payment is made by a
   55  representative or employee of the entity by any means,
   56  including, but not limited to, cash, check, or credit card, even
   57  when that representative or employee is subsequently reimbursed
   58  by the entity. In addition, exemptions provided to any entity by
   59  this subsection do not inure to any transaction that is
   60  otherwise taxable under this chapter unless the entity has
   61  obtained a sales tax exemption certificate from the department
   62  or the entity obtains or provides other documentation as
   63  required by the department. Eligible purchases or leases made
   64  with such a certificate must be in strict compliance with this
   65  subsection and departmental rules, and any person who makes an
   66  exempt purchase with a certificate that is not in strict
   67  compliance with this subsection and the rules is liable for and
   68  shall pay the tax. The department may adopt rules to administer
   69  this subsection.
   70         (ggg)Fractional aircraft ownership programs.—The sale or
   71  use of aircraft primarily used in a fractional aircraft
   72  ownership program, and any parts or labor used in the
   73  completion, maintenance, repair, or overhaul of such aircraft.
   74  The exemption is not allowed unless the purchaser or lessee
   75  furnishes the dealer with a certificate stating that the lease,
   76  purchase, repair, or maintenance is for aircraft primarily used
   77  in a fractional aircraft ownership program and that the
   78  purchaser or lessee qualifies for the exemption. If a purchaser
   79  or lessee makes tax-exempt purchases on a continual basis, the
   80  purchaser or lessee may allow the dealer to keep the certificate
   81  on file. The purchaser or lessee must inform a dealer that keeps
   82  the certificate on file if the purchaser or lessee no longer
   83  qualifies for the exemption. The department shall adopt rules to
   84  administer this section, including rules determining the format
   85  of the certificate.
   86         Section 3. Section 212.0597, Florida Statutes, is created
   87  to read:
   88         212.0597Maximum tax on fractional aircraft ownership
   89  interests.—The maximum tax imposed under this chapter, including
   90  any discretionary sales surtax under s. 212.055, is limited to
   91  $300 on the sale or use in this state of a fractional ownership
   92  interest in aircraft pursuant to a fractional aircraft ownership
   93  program. The tax applies to the total consideration paid for the
   94  fractional ownership interest, including any amounts paid by the
   95  fractional owner as monthly management or maintenance fees. The
   96  tax applies only if the fractional ownership interest is sold by
   97  or to the operator of the fractional aircraft ownership program,
   98  or if the fractional ownership interest is transferred upon the
   99  approval of the operator of the fractional aircraft ownership
  100  program.
  101         Section 4. This act shall take effect July 1, 2010.

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