HF 706

as introduced - 87th Legislature (2011 - 2012) Posted on 02/24/2011 10:51am

A bill for an act
relating to taxation; sales and use; exempting certain aircraft from the sales and
use tax; amending Minnesota Statutes 2010, section 297A.82, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 297A.82, subdivision 4, is amended to
read:

Subd. 4.

Exemptions.

(a) The following transactions are exempt from the tax
imposed in this chapter to the extent provided.

(b) The purchase or use of aircraft previously registered in Minnesota by a
corporation or partnership is exempt if the transfer constitutes a transfer within the
meaning of section 351 or 721 of the Internal Revenue Code.

(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
of an aircraft for which a commercial use permit has been issued pursuant to section
360.654 is exempt, if the aircraft is resold while the permit is in effect.

(d) Airflight equipment when sold to, or purchased, stored, used, or consumed by
airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of
this subdivision, "airflight equipment" includes airplanes and parts necessary for the repair
and maintenance of such airflight equipment, and flight simulators, but does not include
airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or
irregularly timed flights.

(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
in section 360.511 and approved by the Federal Aviation Administration, and which the
seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
shipped or transported outside Minnesota by the purchaser are exempt, but only if the
purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
returned to a point within Minnesota, except in the course of interstate commerce or
isolated and occasional use, and will be registered in another state or country upon its
removal from Minnesota. This exemption applies even if the purchaser takes possession of
the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
for a period not to exceed ten days prior to removing the aircraft from this state.

new text begin (f) The sale or purchase of aircraft and aircraft equipment, including parts necessary
for repair and maintenance of such airflight equipment, as defined under Federal Aviation
Regulations, Part 135, that has a maximum certified takeoff weight of 6,000 pounds or
more are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2011.
new text end