September 8, 2005, Introduced by Senators SCHAUER, CHERRY, GOSCHKA and GARCIA 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 amended by 2004 PA 173.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4x. (1) A sale to a domestic air carrier of 1 or more of
the following is exempt from the tax under this act:
(a) An aircraft that has a maximum certificated takeoff weight
of at least 6,000 pounds for use solely in the transport of air
cargo, passengers, or a combination of air cargo and passengers.
(b) Parts and materials, excluding shop equipment or fuel,
affixed or to be affixed to an aircraft that has a maximum
certificated takeoff weight of at least 6,000 pounds for use solely
in the transport of air cargo, passengers, or a combination of air
cargo and passengers.
(2) A sale of parts and materials, excluding shop equipment or
fuel, affixed or to be affixed to an aircraft not based or
registered in the United States is exempt from the collection of
taxes under this act.
(3) A sale of an aircraft that is temporarily located in this
state for the purpose of prepurchase evaluation or postsale work
and that will not be based or registered in the United States
following the sale is exempt from the tax under this act.
(4) (2) A sale of an aircraft to a person for subsequent
lease to a domestic air carrier operating under a certificate
issued by the federal aviation administration under 14 CFR 121, for
use solely in the regularly scheduled transport of passengers is
exempt from the tax under this act.
(5) (3) As used in this section, "domestic air
carrier" is
limited to entities engaged primarily in the commercial transport
for hire of air cargo, passengers, or a combination of air cargo
and passengers as a business activity.