A bill to amend 1933 PA 167, entitled “General sales tax act,” by amending section 4x (MCL 205.54x), as amended by 2009 PA 53.
This bill proposes exemptions from sales tax for the sale of aircraft to domestic air carriers, under certain conditions. Key points include:
Aircraft Eligibility: The exemption applies to aircraft with a maximum certificated takeoff weight of at least 6,000 pounds, used solely for transporting air cargo, passengers, or both.
Parts and Materials: Sales of parts or materials for an aircraft, excluding shop equipment or fuel, are also exempt from sales tax if they are affixed or to be affixed to the aircraft.
Conditions for Tax Exemption: For an aircraft sale to qualify for the exemption, the aircraft must leave Michigan within 15 days after the sale (and any associated prepurchase evaluation, customization, improvement, maintenance, or repair) and must not be based or registered in Michigan thereafter.
Lease to Domestic Air Carriers: The sale of an aircraft to a person for subsequent lease to a domestic air carrier operating under a Federal Aviation Administration certificate for use in regularly scheduled passenger transport is exempt from sales tax.
Definitions: The bill defines terms such as "aircraft," "based in this state," "customization," "domestic air carrier," and "registered in this state" to clarify eligibility and requirements for the tax exemptions.
Implementation and Compensation: The act is set to take effect 90 days after enactment. It includes a legislative intent to annually appropriate sufficient funds to the state school aid fund to offset any revenue loss resulting from these exemptions.
Introduced
by
Referred to the Committee on Finance, Insurance, and Consumer Protection
