84R23693 BEF-F
By: Paddie H.B. No. 3287
Substitute the following for H.B. No. 3287:
By: Wray C.S.H.B. No. 3287
A BILL TO BE ENTITLED
AN ACT
relating to the sales and use taxation of aircraft.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 163 to read as follows:
CHAPTER 163. SALES AND USE TAXATION OF AIRCRAFT
Sec. 163.001. CERTIFICATED OR LICENSED CARRIERS. (a) For
purposes of Chapter 151, "certificated or licensed carrier" means a
person authorized by the Federal Aviation Administration to operate
an aircraft to transport persons or property in compliance with the
certification and operations specifications requirements of 14
C.F.R. Part 121, 125, 133, or 135.
(b) Section 151.328(a)(1) applies with respect to a
certificated carrier's acquisition of an aircraft, without regard
to whether the certificated carrier acquired the aircraft by
purchase, lease, or rental.
Sec. 163.002. RESALE OF AIRCRAFT. (a) For purposes of
Section 151.006, "sale for resale" includes the sale of an aircraft
to a purchaser who acquires the aircraft for the purpose of leasing,
renting, or reselling the aircraft to another person in the United
States of America or a possession or territory of the United States
of America or in the United Mexican States in the form or condition
in which it is acquired.
(b) The leasing or renting of an aircraft under Subsection
(a) includes the transfer of operational control of the aircraft
from a lessor to one or more lessees pursuant to one or more written
agreements in exchange for consideration, regardless of whether the
consideration is in the form of a cash payment and regardless of
whether the consideration is fixed, variable, or periodic. For
purposes of this subsection, "operational control" has the meaning
assigned by the Federal Aviation Regulations and includes the
exercise of authority over initiating, conducting, or terminating a
flight.
(c) Subsection (a) applies to a purchase of an aircraft
regardless of whether the purchaser, in addition to leasing,
renting, or reselling the aircraft to another person, also uses the
aircraft if, for a period of one year beginning on the date the
purchaser purchases the aircraft, more than 50 percent of the
aircraft's departures are made under the operational control of one
or more lessees pursuant to one or more written agreements as
described by Subsection (b).
(d) Section 151.154(a) does not apply to a purchaser of an
aircraft.
Sec. 163.003. USE OF AIRCRAFT. For purposes of the tax
imposed under Subchapter D, Chapter 151, an aircraft that is
brought into this state for the sole purpose of being completed,
repaired, remodeled, or restored is not brought into the state for
storage, use, or other consumption in this state.
Sec. 163.004. NO PRESUMPTION OF USE. For purposes of the
tax imposed under Subchapter D, Chapter 151, there is no
presumption that an aircraft was purchased for storage, use, or
consumption in this state if the person bringing the aircraft into
this state did not acquire the aircraft directly from a seller by
means of a purchase, as that term is defined by Section 151.005.
Sec. 163.005. NO IMPOSITION OF TAX FOLLOWING OUT-OF-STATE
USE. (a) No tax is imposed under Subchapter D, Chapter 151, with
respect to an aircraft that is brought into this state if the
aircraft is predominantly used outside of this state for a period of
one year beginning on the later of:
(1) the date the aircraft was acquired, whether by
purchase, lease, rental, or otherwise, by the person bringing the
aircraft into this state; or
(2) the date the aircraft:
(A) was substantially complete in the condition
for its intended use; and
(B) conducted its first flight for the carriage
of persons or property.
(b) For purposes of this section, an aircraft is
predominantly used outside of this state if more than 50 percent of
the aircraft's departures are from locations outside of this state.
Sec. 163.006. CERTAIN TRANSACTIONS BETWEEN RELATED
PERSONS. (a) For purposes of the tax imposed under Chapter 151, a
sale, lease, rental, or other transaction between a person and a
member, owner, or affiliate of the person involving an aircraft
that would not be subject to tax or would qualify for an exemption
from tax if the transaction were between unrelated persons remains
not subject to tax or exempt from tax to the same extent as if the
transaction were between unrelated persons.
(b) No tax is imposed under Chapter 151 with respect to the
use of an aircraft by an owner or member of the purchaser of the
aircraft, by an entity that is an affiliate of the purchaser of the
aircraft, or by an owner or member of an affiliate of the purchaser
of the aircraft if:
(1) with respect to the purchase of the aircraft, the
purchaser paid the tax imposed under Chapter 151; or
(2) the purchaser's purchase of the aircraft was
exempt from the tax imposed under Chapter 151, other than under:
(A) Section 151.302; or
(B) Section 151.304, unless the purchase would
have been exempt from tax under Section 151.304 if the owner,
member, affiliate, or owner or member of the affiliate who is using
the aircraft had been the purchaser.
(c) For purposes of this section, the term "affiliate" means
an entity that would be classified as a member of the purchaser's
affiliated group under Section 171.0001.
Sec. 163.007. AIRCRAFT OPERATED UNDER FRACTIONAL OWNERSHIP
PROGRAMS. No tax is imposed under Chapter 151 with respect to the
purchase, sale, or use of an aircraft that is operated pursuant to
14 C.F.R. Part 91, Subpart K.
Sec. 163.008. NO IMPOSITION OF TAX UNDER THIS CHAPTER.
Nothing in this chapter shall be construed to impose a tax.
Sec. 163.009. CONFLICTS WITH OTHER LAW. This chapter
controls over Chapter 151 to the extent of any conflict.
SECTION 2. This Act takes effect September 1, 2015.