Texas 2009 - 81st Regular

Texas Senate Bill SB958 Compare Versions

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1	1	S.B. No. 958
2	2
3	3
4	4	AN ACT
5	5	relating to an exemption from the sales and use tax for certain
6	6	aircraft, including machinery and equipment used in an agricultural
7	7	aircraft operation.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subsection (a), Section 151.316, Tax Code, is
10	10	amended to read as follows:
11	11	(a) The following items are exempted from the taxes imposed
12	12	by this chapter:
13	13	(1) horses, mules, and work animals;
14	14	(2) animal life the products of which ordinarily
15	15	constitute food for human consumption;
16	16	(3) feed for farm and ranch animals;
17	17	(4) feed for animals that are held for sale in the
18	18	regular course of business;
19	19	(5) seeds and annual plants the products of which:
20	20	(A) ordinarily constitute food for human
21	21	consumption;
22	22	(B) are to be sold in the regular course of
23	23	business; or
24	24	(C) are used to produce feed for animals exempted
25	25	by this section;
26	26	(6) fertilizers, fungicides, insecticides,
27	27	herbicides, defoliants, and desiccants exclusively used or
28	28	employed on a farm or ranch in the production of:
29	29	(A) food for human consumption;
30	30	(B) feed for animal life; or
31	31	(C) other agricultural products to be sold in the
32	32	regular course of business;
33	33	(7) machinery and equipment exclusively used or
34	34	employed on a farm or ranch in the building or maintaining of roads
35	35	or water facilities or in the production of:
36	36	(A) food for human consumption;
37	37	(B) grass;
38	38	(C) feed for animal life; or
39	39	(D) other agricultural products to be sold in the
40	40	regular course of business;
41	41	(8) machinery and equipment exclusively used in, and
42	42	pollution control equipment required as a result of, the
43	43	processing, packing, or marketing of agricultural products by an
44	44	original producer at a location operated by the original producer
45	45	for processing, packing, or marketing the producer's own products
46	46	if:
47	47	(A) 50 percent or more of the products processed,
48	48	packed, or marketed at or from the location are produced by the
49	49	original producer and not purchased or acquired from others; and
50	50	(B) the producer does not process, pack, or
51	51	market for consideration any agricultural products that belong to
52	52	other persons in an amount greater than five percent of the total
53	53	agricultural products processed, packed, or marketed by the
54	54	producer; [and]
55	55	(9) ice exclusively used by commercial fishing boats
56	56	in the storing of aquatic species including but not limited to
57	57	shrimp, other crustaceans, finfish, mollusks, and other similar
58	58	creatures; and
59	59	(10) machinery and equipment exclusively used in an
60	60	agricultural aircraft operation, as defined by 14 C.F.R. Section
61	61	137.3.
62	62	SECTION 2. Section 151.328, Tax Code, is amended by
63	63	amending Subsections (a) and (b) and adding Subsection (h) to read
64	64	as follows:
65	65	(a) Aircraft are exempted from the taxes imposed by this
66	66	chapter if:
67	67	(1) sold to a person using the aircraft as a
68	68	certificated or licensed carrier of persons or property;
69	69	(2) sold to a person who:
70	70	(A) has a sales tax permit issued under this
71	71	chapter; and
72	72	(B) uses the aircraft for the purpose of
73	73	providing flight instruction that is:
74	74	(i) recognized by the Federal Aviation
75	75	Administration;
76	76	(ii) under the direct or general
77	77	supervision of a flight instructor certified by the Federal
78	78	Aviation Administration; and
79	79	(iii) designed to lead to a pilot
80	80	certificate or rating issued by the Federal Aviation Administration
81	81	or otherwise required by a rule or regulation of the Federal
82	82	Aviation Administration;
83	83	(3) sold to a foreign government; [or]
84	84	(4) sold in this state to a person for use and
85	85	registration in another state or nation before any use in this state
86	86	other than flight training in the aircraft and the transportation
87	87	of the aircraft out of this state; or
88	88	(5) sold in this state to a person for use exclusively
89	89	in connection with an agricultural use, as defined by Section
90	90	23.51, and used for:
91	91	(A) predator control;
92	92	(B) wildlife or livestock capture;
93	93	(C) wildlife or livestock surveys;
94	94	(D) census counts of wildlife or livestock;
95	95	(E) animal or plant health inspection services;
96	96	or
97	97	(F) crop dusting, pollination, or seeding.
98	98	(b) Repair, remodeling, and maintenance services to
99	99	aircraft, including an engine or other component part of aircraft,
100	100	operated by a person described by Subsection (a)(1), [or] (a)(2),
101	101	or (a)(5) are exempted from the taxes imposed by this chapter.
102	102	(h) For purposes of the exemption under Subsection (a)(5),
103	103	an aircraft is considered to be for use exclusively in connection
104	104	with an agricultural use if 95 percent of the use of the aircraft is
105	105	for a purpose described by Subsections (a)(5)(A)-(F). Travel of
106	106	less than 30 miles each way to a location to perform a service
107	107	described by Subsections (a)(5)(A)-(F) does not disqualify an
108	108	aircraft from the exemption under Subsection (a)(5). A person who
109	109	claims an exemption under Subsection (a)(5) must maintain and make
110	110	available to the comptroller flight records for all uses of the
111	111	aircraft.
112	112	SECTION 3. The changes in law made by this Act to Section
113	113	151.328, Tax Code, are a clarification of existing law and do not
114	114	imply that the former law may be construed as inconsistent with the
115	115	law as amended by this Act.
116	116	SECTION 4. The change in law made by this Act does not
117	117	affect tax liability accruing before the effective date of this
118	118	Act. That liability continues in effect as if this Act had not been
119	119	enacted, and the former law is continued in effect for the
120	120	collection of taxes due and for civil and criminal enforcement of
121	121	the liability for those taxes.
122	122	SECTION 5. This Act takes effect September 1, 2009.
123	123	______________________________ ______________________________
124	124	President of the Senate Speaker of the House
125	125	I hereby certify that S.B. No. 958 passed the Senate on
126	126	May 7, 2009, by the following vote: Yeas 31, Nays 0; and that the
127	127	Senate concurred in House amendment on May 30, 2009, by the
128	128	following vote: Yeas 31, Nays 0.
129	129	______________________________
130	130	Secretary of the Senate
131	131	I hereby certify that S.B. No. 958 passed the House, with
132	132	amendment, on May 26, 2009, by the following vote: Yeas 145,
133	133	Nays 0, one present not voting.
134	134	______________________________
135	135	Chief Clerk of the House
136	136	Approved:
137	137	______________________________
138	138	Date
139	139	______________________________
140	140	Governor