SENATE BILL No. 437

May 1, 2001, Introduced by Senator BULLARD and referred to the Committee on Finance.

A bill to amend 1933 PA 167, entitled

"General sales tax act,"

by amending section 4x (MCL 205.54x), as added by 2000 PA 204.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 4x. (1) A person subject to tax under this act may

2 exclude from the gross proceeds used for the computation of this

3 tax sales to a domestic air carrier OR, BEGINNING JANUARY 1,

4 1996, TO A PERSON FOR LEASE TO A DOMESTIC AIR CARRIER of 1 or

5 more of the following:

6 (a) An aircraft that has a maximum certificated takeoff

7 weight of at least 6,000 pounds for use solely in the transport

8 of air cargo, passengers, or a combination of air cargo and

9 passengers.

10 (b) Parts and materials, excluding shop equipment or fuel,

11 affixed or to be affixed to an aircraft that has a maximum

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1 certificated takeoff weight of at least 6,000 pounds for use

2 solely in the transport of air cargo, passengers, or a combina-

3 tion of air cargo and passengers.

4 (2) As used in this section, "domestic air carrier" is

5 limited to entities engaged primarily in the commercial transport

6 for hire of air cargo, passengers, or a combination of air cargo

7 and passengers as a business activity.

8 (3) THE STATE TREASURER SHALL DETERMINE NOT LATER THAN

9 JANUARY 1 EACH YEAR THE AMOUNT OF REVENUE LOST FROM THE STATE

10 SCHOOL AID FUND IN THE IMMEDIATELY PRECEDING STATE FISCAL YEAR

11 BECAUSE OF THE EXEMPTION IN THIS SECTION AND SHALL IMMEDIATELY

12 DEPOSIT THAT AMOUNT FROM THE STATE GENERAL FUND INTO THE STATE

13 SCHOOL AID FUND.

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