Bill Text: TX HB2294 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the audit, assessment, and collection of sales and use tax on general aviation aircraft under the Texas Tax Code.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-16 - Referred to Ways & Means [HB2294 Detail]
Download: Texas-2015-HB2294-Introduced.html
| 84R13171 T | ||
| By: Bohac | H.B. No. 2294 | |
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| relating to the audit, assessment, and collection of sales and use | ||
| tax on general aviation aircraft under the Texas Tax Code. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 101, Tax Code, is amended by adding | ||
| subsection 101.003(14) to read as follows: | ||
| (14) "General Aviation Aircraft" means any aircraft | ||
| other than those operated by scheduled commercial airlines under | ||
| Part 121 of the Federal Aviation Regulations or aircraft owned by a | ||
| governmental entity. | ||
| SECTION 2. Subchapter A, Chapter 111, Section 111.002, Tax | ||
| Code, is amended by adding subsection (a-1) to read as follows: | ||
| (a-1) Deadlines for correspondence, production of documents | ||
| or other action demanded of a taxpayer during an audit that would | ||
| have the effect of waiving the taxpayer's right to protest an audit | ||
| determination if the taxpayer fails to meet the deadline shall be | ||
| promulgated by rule pursuant to Chapter 2001, Government Code. A | ||
| deadline promulgated by rule as provided by this subsection shall | ||
| use the date that the taxpayer receives the demand from the | ||
| comptroller as the beginning date in computing the deadline period. | ||
| SECTION 3. Section 151.328, Subchapter H, Chapter 151, Tax | ||
| Code is amended by adding subsections (i), (j), (k), (l), (m), (n), | ||
| and (o) to read as follows: | ||
| (i) Sales and use tax exemption certificates promulgated by | ||
| the comptroller shall be accepted by the comptroller as prima facie | ||
| evidence that the described transaction qualifies for the | ||
| corresponding sales or use tax exemption as provided by the Tax | ||
| Code, unless the information provided on the certificate by the | ||
| taxpayer demonstrates that the transaction does not qualify for the | ||
| corresponding sales or use tax exemption. The comptroller shall | ||
| not request documents or other information beyond that which is | ||
| necessary to determine whether the information provided on the | ||
| certificate is factually incorrect in a manner that disqualifies | ||
| the transaction from the requested exemption. | ||
| (j) The comptroller shall complete any audit related to a | ||
| request for exemption from sales or use tax related to general | ||
| aviation aircraft no later than 180 days from the date of the | ||
| purchase, sale or lease of an aircraft which is the subject of the | ||
| audit. | ||
| (k) The comptroller shall not treat as precedential or | ||
| otherwise base audit determinations on unpublished | ||
| interpretations, State Office of Administrative Hearings opinions, | ||
| or comptroller opinions including, but not limited to, those | ||
| published in the State Automated Tax Research system. | ||
| (l) Under this section the term "lease" means a written | ||
| contract between a lessor and lessee transferring operational | ||
| control, as that term is defined in the Federal Aviation | ||
| Regulations, of an aircraft from lessor to lessee in exchange for | ||
| consideration paid by the lessee to the lessor which both lessor and | ||
| lessee agrees to, and which otherwise meets the requirements for an | ||
| aircraft lease described in the portion of the Federal Aviation | ||
| Regulations applicable to the operation of the aircraft in | ||
| question. "Operational control" with respect to a flight, means | ||
| the exercise of authority over initiating, conducting or | ||
| terminating a flight. | ||
| (m) Notwithstanding any other provision of the Tax Code, a | ||
| person who contests a sales or use tax audit determination related | ||
| to a general aviation aircraft transaction may exhaust all | ||
| administrative and judicial remedies before paying the contested | ||
| tax. | ||
| (n) Penalties and interest shall be tolled during the | ||
| administrative and judicial appeal of comptroller sales or use tax | ||
| audit determinations. | ||
| (o) A person who prevails in a contest regarding a | ||
| comptroller sales or use tax audit determination related to general | ||
| aviation aircraft is entitled to reasonable and necessary attorney | ||
| fees upon a finding by the State Office of Administrative Hearings | ||
| or a district court that the comptroller's audit determination was | ||
| arbitrary and capricious. | ||
| SECTION 4. This Act takes effect September 1, 2015. | ||
