86R11653 SRA-F
By: Wilson H.B. No. 2666
A BILL TO BE ENTITLED
AN ACT
relating to the sales and use tax exemption for certain aircraft.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 151.328(a) and (h), Tax Code, are
amended to read as follows:
(a) Aircraft are exempted from the taxes imposed by this
chapter if:
(1) sold to a person using the aircraft as a
certificated or licensed carrier of persons or property;
(2) sold to a person who:
(A) has a sales tax permit issued under this
chapter; and
(B) uses the aircraft for the purpose of
providing flight instruction that is:
(i) recognized by the Federal Aviation
Administration;
(ii) under the direct or general
supervision of a flight instructor certified by the Federal
Aviation Administration; and
(iii) designed to lead to a pilot
certificate or rating issued by the Federal Aviation Administration
or otherwise required by a rule or regulation of the Federal
Aviation Administration;
(3) sold to a foreign government;
(4) sold in this state to a person for use and
registration in another state or nation before any use in this state
other than flight training in the aircraft and the transportation
of the aircraft out of this state; or
(5) sold in this state to a person for use exclusively
in connection with an agricultural use, as defined by Section
23.51, and used for:
(A) predator control;
(B) wildlife or livestock capture;
(C) wildlife or livestock surveys;
(D) census counts of wildlife or livestock;
(E) animal or plant health inspection services;
[or]
(F) crop dusting, pollination, or seeding; or
(G) any other use necessary to operate a business
that performs any service described by Paragraphs (A)-(F).
(h) For purposes of the exemption under Subsection (a)(5),
an aircraft is considered to be for use exclusively in connection
with an agricultural use if 95 percent of the use of the aircraft is
for a purpose described by Subsections (a)(5)(A)-(G)
[(a)(5)(A)-(F)]. Intrastate travel [Travel of less than 30 miles
each way] to a location to perform a service described by
Subsections (a)(5)(A)-(G) [(a)(5)(A)-(F)] does not disqualify an
aircraft from the exemption under Subsection (a)(5). A person who
claims an exemption under Subsection (a)(5) must maintain and make
available to the comptroller flight records for all uses of the
aircraft.
SECTION 2. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 3. This Act takes effect September 1, 2019.