Bill Text: MN SF519 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Aircraft and aircraft equipment sales and use tax exemption
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-02-28 - Referred to Taxes [SF519 Detail]
Download: Minnesota-2011-SF519-Introduced.html
1.2relating to taxation; sales and use; exempting certain aircraft from the sales and
1.3use tax;amending Minnesota Statutes 2010, section 297A.82, subdivision 4.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 297A.82, subdivision 4, is amended to
1.6read:
1.7 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
1.8imposed in this chapter to the extent provided.
1.9(b) The purchase or use of aircraft previously registered in Minnesota by a
1.10corporation or partnership is exempt if the transfer constitutes a transfer within the
1.11meaning of section 351 or 721 of the Internal Revenue Code.
1.12(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
1.13of an aircraft for which a commercial use permit has been issued pursuant to section
1.14360.654
is exempt, if the aircraft is resold while the permit is in effect.
1.15(d) Airflight equipment when sold to, or purchased, stored, used, or consumed by
1.16airline companies, as defined in section270.071, subdivision 4 , is exempt. For purposes of
1.17this subdivision, "airflight equipment" includes airplanes and parts necessary for the repair
1.18and maintenance of such airflight equipment, and flight simulators, but does not include
1.19airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or
1.20irregularly timed flights.
1.21(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
1.22in section360.511 and approved by the Federal Aviation Administration, and which the
1.23seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
1.24shipped or transported outside Minnesota by the purchaser are exempt, but only if the
2.1purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
2.2returned to a point within Minnesota, except in the course of interstate commerce or
2.3isolated and occasional use, and will be registered in another state or country upon its
2.4removal from Minnesota. This exemption applies even if the purchaser takes possession of
2.5the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
2.6for a period not to exceed ten days prior to removing the aircraft from this state.
2.7(f) The sale or purchase of aircraft and aircraft equipment, including parts necessary
2.8for repair and maintenance of such airflight equipment, as defined under Federal Aviation
2.9Regulations, Part 135, that has a maximum certified takeoff weight of 6,000 pounds or
2.10more are exempt.
2.11EFFECTIVE DATE.This section is effective for sales and purchases made after
2.12June 30, 2011.
1.3use tax;amending Minnesota Statutes 2010, section 297A.82, subdivision 4.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 297A.82, subdivision 4, is amended to
1.6read:
1.7 Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
1.8imposed in this chapter to the extent provided.
1.9(b) The purchase or use of aircraft previously registered in Minnesota by a
1.10corporation or partnership is exempt if the transfer constitutes a transfer within the
1.11meaning of section 351 or 721 of the Internal Revenue Code.
1.12(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
1.13of an aircraft for which a commercial use permit has been issued pursuant to section
1.15(d) Airflight equipment when sold to, or purchased, stored, used, or consumed by
1.16airline companies, as defined in section
1.17this subdivision, "airflight equipment" includes airplanes and parts necessary for the repair
1.18and maintenance of such airflight equipment, and flight simulators, but does not include
1.19airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or
1.20irregularly timed flights.
1.21(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
1.22in section
1.23seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
1.24shipped or transported outside Minnesota by the purchaser are exempt, but only if the
2.1purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
2.2returned to a point within Minnesota, except in the course of interstate commerce or
2.3isolated and occasional use, and will be registered in another state or country upon its
2.4removal from Minnesota. This exemption applies even if the purchaser takes possession of
2.5the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
2.6for a period not to exceed ten days prior to removing the aircraft from this state.
2.7(f) The sale or purchase of aircraft and aircraft equipment, including parts necessary
2.8for repair and maintenance of such airflight equipment, as defined under Federal Aviation
2.9Regulations, Part 135, that has a maximum certified takeoff weight of 6,000 pounds or
2.10more are exempt.
2.11EFFECTIVE DATE.This section is effective for sales and purchases made after
2.12June 30, 2011.
