Texas House Bill HB2666

Texas 2019 - 86th Regular

Caption

Relating to the sales and use tax exemption for certain aircraft.

Impact

The changes proposed in HB 2666 are expected to have a significant impact on state tax regulations pertaining to aviation and agriculture. By broadening the exemptions for aircraft, the bill seeks to support the aviation industry and encourage more extensive usage of aircraft in agricultural practices. This could enhance the operational capabilities of farmers and agricultural businesses, making it financially feasible for them to utilize aircraft for essential practices such as pest control, crop monitoring, and other significant activities.

Summary

House Bill 2666 aims to amend the Texas Tax Code provisions concerning the sales and use tax exemptions applicable to certain aircraft. The bill primarily focuses on expanding the categories of individuals and entities eligible for tax exemptions, particularly those utilizing aircraft for agricultural purposes or flight instruction. Specifically, it outlines specific criteria under which aircraft sales can be exempted from sales tax, emphasizing the exemptions granted to certified flight instructors and agricultural-based uses of aircraft, such as wildlife surveys and crop dusting.

Contention

Despite its intentions, the bill may face scrutiny regarding its potential loopholes and impact on tax revenue. Critics may argue that expanding exemptions could result in considerable tax losses for the state, questioning whether these exemptions are justified in light of potential lost revenue. Additionally, concerns may arise regarding the effectiveness of the proposed tracking and documentation requirements outlined for those claiming the exemptions, as well as ensuring that the intended benefits reach the specified sectors.