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AN ACT
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relating to an exemption from the sales and use tax for certain |
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aircraft, including machinery and equipment used in an agricultural |
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aircraft operation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 151.316, Tax Code, is |
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amended to read as follows: |
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(a) The following items are exempted from the taxes imposed |
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by this chapter: |
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(1) horses, mules, and work animals; |
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(2) animal life the products of which ordinarily |
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constitute food for human consumption; |
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(3) feed for farm and ranch animals; |
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(4) feed for animals that are held for sale in the |
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regular course of business; |
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(5) seeds and annual plants the products of which: |
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(A) ordinarily constitute food for human |
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consumption; |
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(B) are to be sold in the regular course of |
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business; or |
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(C) are used to produce feed for animals exempted |
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by this section; |
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(6) fertilizers, fungicides, insecticides, |
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herbicides, defoliants, and desiccants exclusively used or |
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employed on a farm or ranch in the production of: |
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(A) food for human consumption; |
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(B) feed for animal life; or |
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(C) other agricultural products to be sold in the |
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regular course of business; |
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(7) machinery and equipment exclusively used or |
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employed on a farm or ranch in the building or maintaining of roads |
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or water facilities or in the production of: |
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(A) food for human consumption; |
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(B) grass; |
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(C) feed for animal life; or |
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(D) other agricultural products to be sold in the |
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regular course of business; |
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(8) machinery and equipment exclusively used in, and |
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pollution control equipment required as a result of, the |
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processing, packing, or marketing of agricultural products by an |
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original producer at a location operated by the original producer |
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for processing, packing, or marketing the producer's own products |
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if: |
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(A) 50 percent or more of the products processed, |
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packed, or marketed at or from the location are produced by the |
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original producer and not purchased or acquired from others; and |
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(B) the producer does not process, pack, or |
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market for consideration any agricultural products that belong to |
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other persons in an amount greater than five percent of the total |
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agricultural products processed, packed, or marketed by the |
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producer; [and] |
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(9) ice exclusively used by commercial fishing boats |
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in the storing of aquatic species including but not limited to |
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shrimp, other crustaceans, finfish, mollusks, and other similar |
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creatures; and |
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(10) machinery and equipment exclusively used in an |
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agricultural aircraft operation, as defined by 14 C.F.R. Section |
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137.3. |
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SECTION 2. Section 151.328, Tax Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (h) to read |
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as follows: |
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(a) Aircraft are exempted from the taxes imposed by this |
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chapter if: |
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(1) sold to a person using the aircraft as a |
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certificated or licensed carrier of persons or property; |
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(2) sold to a person who: |
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(A) has a sales tax permit issued under this |
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chapter; and |
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(B) uses the aircraft for the purpose of |
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providing flight instruction that is: |
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(i) recognized by the Federal Aviation |
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Administration; |
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(ii) under the direct or general |
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supervision of a flight instructor certified by the Federal |
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Aviation Administration; and |
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(iii) designed to lead to a pilot |
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certificate or rating issued by the Federal Aviation Administration |
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or otherwise required by a rule or regulation of the Federal |
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Aviation Administration; |
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(3) sold to a foreign government; [or] |
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(4) sold in this state to a person for use and |
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registration in another state or nation before any use in this state |
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other than flight training in the aircraft and the transportation |
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of the aircraft out of this state; or |
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(5) sold in this state to a person for use exclusively |
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in connection with an agricultural use, as defined by Section |
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23.51, and used for: |
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(A) predator control; |
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(B) wildlife or livestock capture; |
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(C) wildlife or livestock surveys; |
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(D) census counts of wildlife or livestock; |
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(E) animal or plant health inspection services; |
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or |
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(F) crop dusting, pollination, or seeding. |
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(b) Repair, remodeling, and maintenance services to |
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aircraft, including an engine or other component part of aircraft, |
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operated by a person described by Subsection (a)(1), [or] (a)(2), |
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or (a)(5) are exempted from the taxes imposed by this chapter. |
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(h) For purposes of the exemption under Subsection (a)(5), |
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an aircraft is considered to be for use exclusively in connection |
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with an agricultural use if 95 percent of the use of the aircraft is |
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for a purpose described by Subsections (a)(5)(A)-(F). Travel of |
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less than 30 miles each way to a location to perform a service |
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described by Subsections (a)(5)(A)-(F) does not disqualify an |
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aircraft from the exemption under Subsection (a)(5). A person who |
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claims an exemption under Subsection (a)(5) must maintain and make |
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available to the comptroller flight records for all uses of the |
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aircraft. |
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SECTION 3. The changes in law made by this Act to Section |
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151.328, Tax Code, are a clarification of existing law and do not |
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imply that the former law may be construed as inconsistent with the |
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law as amended by this Act. |
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SECTION 4. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 5. This Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 958 passed the Senate on |
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May 7, 2009, by the following vote: Yeas 31, Nays 0; and that the |
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Senate concurred in House amendment on May 30, 2009, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 958 passed the House, with |
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amendment, on May 26, 2009, by the following vote: Yeas 145, |
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Nays 0, one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |