Texas 2015 - 84th Regular

Texas House Bill HB3287 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R23693 BEF-F
2	2	By: Paddie H.B. No. 3287
3	3	Substitute the following for H.B. No. 3287:
4	4	By: Wray C.S.H.B. No. 3287
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the sales and use taxation of aircraft.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
12	12	adding Chapter 163 to read as follows:
13	13	CHAPTER 163. SALES AND USE TAXATION OF AIRCRAFT
14	14	Sec. 163.001. CERTIFICATED OR LICENSED CARRIERS. (a) For
15	15	purposes of Chapter 151, "certificated or licensed carrier" means a
16	16	person authorized by the Federal Aviation Administration to operate
17	17	an aircraft to transport persons or property in compliance with the
18	18	certification and operations specifications requirements of 14
19	19	C.F.R. Part 121, 125, 133, or 135.
20	20	(b) Section 151.328(a)(1) applies with respect to a
21	21	certificated carrier's acquisition of an aircraft, without regard
22	22	to whether the certificated carrier acquired the aircraft by
23	23	purchase, lease, or rental.
24	24	Sec. 163.002. RESALE OF AIRCRAFT. (a) For purposes of
25	25	Section 151.006, "sale for resale" includes the sale of an aircraft
26	26	to a purchaser who acquires the aircraft for the purpose of leasing,
27	27	renting, or reselling the aircraft to another person in the United
28	28	States of America or a possession or territory of the United States
29	29	of America or in the United Mexican States in the form or condition
30	30	in which it is acquired.
31	31	(b) The leasing or renting of an aircraft under Subsection
32	32	(a) includes the transfer of operational control of the aircraft
33	33	from a lessor to one or more lessees pursuant to one or more written
34	34	agreements in exchange for consideration, regardless of whether the
35	35	consideration is in the form of a cash payment and regardless of
36	36	whether the consideration is fixed, variable, or periodic. For
37	37	purposes of this subsection, "operational control" has the meaning
38	38	assigned by the Federal Aviation Regulations and includes the
39	39	exercise of authority over initiating, conducting, or terminating a
40	40	flight.
41	41	(c) Subsection (a) applies to a purchase of an aircraft
42	42	regardless of whether the purchaser, in addition to leasing,
43	43	renting, or reselling the aircraft to another person, also uses the
44	44	aircraft if, for a period of one year beginning on the date the
45	45	purchaser purchases the aircraft, more than 50 percent of the
46	46	aircraft's departures are made under the operational control of one
47	47	or more lessees pursuant to one or more written agreements as
48	48	described by Subsection (b).
49	49	(d) Section 151.154(a) does not apply to a purchaser of an
50	50	aircraft.
51	51	Sec. 163.003. USE OF AIRCRAFT. For purposes of the tax
52	52	imposed under Subchapter D, Chapter 151, an aircraft that is
53	53	brought into this state for the sole purpose of being completed,
54	54	repaired, remodeled, or restored is not brought into the state for
55	55	storage, use, or other consumption in this state.
56	56	Sec. 163.004. NO PRESUMPTION OF USE. For purposes of the
57	57	tax imposed under Subchapter D, Chapter 151, there is no
58	58	presumption that an aircraft was purchased for storage, use, or
59	59	consumption in this state if the person bringing the aircraft into
60	60	this state did not acquire the aircraft directly from a seller by
61	61	means of a purchase, as that term is defined by Section 151.005.
62	62	Sec. 163.005. NO IMPOSITION OF TAX FOLLOWING OUT-OF-STATE
63	63	USE. (a) No tax is imposed under Subchapter D, Chapter 151, with
64	64	respect to an aircraft that is brought into this state if the
65	65	aircraft is predominantly used outside of this state for a period of
66	66	one year beginning on the later of:
67	67	(1) the date the aircraft was acquired, whether by
68	68	purchase, lease, rental, or otherwise, by the person bringing the
69	69	aircraft into this state; or
70	70	(2) the date the aircraft:
71	71	(A) was substantially complete in the condition
72	72	for its intended use; and
73	73	(B) conducted its first flight for the carriage
74	74	of persons or property.
75	75	(b) For purposes of this section, an aircraft is
76	76	predominantly used outside of this state if more than 50 percent of
77	77	the aircraft's departures are from locations outside of this state.
78	78	Sec. 163.006. CERTAIN TRANSACTIONS BETWEEN RELATED
79	79	PERSONS. (a) For purposes of the tax imposed under Chapter 151, a
80	80	sale, lease, rental, or other transaction between a person and a
81	81	member, owner, or affiliate of the person involving an aircraft
82	82	that would not be subject to tax or would qualify for an exemption
83	83	from tax if the transaction were between unrelated persons remains
84	84	not subject to tax or exempt from tax to the same extent as if the
85	85	transaction were between unrelated persons.
86	86	(b) No tax is imposed under Chapter 151 with respect to the
87	87	use of an aircraft by an owner or member of the purchaser of the
88	88	aircraft, by an entity that is an affiliate of the purchaser of the
89	89	aircraft, or by an owner or member of an affiliate of the purchaser
90	90	of the aircraft if:
91	91	(1) with respect to the purchase of the aircraft, the
92	92	purchaser paid the tax imposed under Chapter 151; or
93	93	(2) the purchaser's purchase of the aircraft was
94	94	exempt from the tax imposed under Chapter 151, other than under:
95	95	(A) Section 151.302; or
96	96	(B) Section 151.304, unless the purchase would
97	97	have been exempt from tax under Section 151.304 if the owner,
98	98	member, affiliate, or owner or member of the affiliate who is using
99	99	the aircraft had been the purchaser.
100	100	(c) For purposes of this section, the term "affiliate" means
101	101	an entity that would be classified as a member of the purchaser's
102	102	affiliated group under Section 171.0001.
103	103	Sec. 163.007. AIRCRAFT OPERATED UNDER FRACTIONAL OWNERSHIP
104	104	PROGRAMS. No tax is imposed under Chapter 151 with respect to the
105	105	purchase, sale, or use of an aircraft that is operated pursuant to
106	106	14 C.F.R. Part 91, Subpart K.
107	107	Sec. 163.008. NO IMPOSITION OF TAX UNDER THIS CHAPTER.
108	108	Nothing in this chapter shall be construed to impose a tax.
109	109	Sec. 163.009. CONFLICTS WITH OTHER LAW. This chapter
110	110	controls over Chapter 151 to the extent of any conflict.
111	111	SECTION 2. This Act takes effect September 1, 2015.