1.1 	A bill for an act
1.2 	relating to taxation; sales and use; exempting certain aircraft from the sales and 
1.3 	use tax;amending Minnesota Statutes 2010, section 297A.82, subdivision 4.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 297A.82, subdivision 4, is amended to 
1.6 	read:
1.7 		Subd. 4.Exemptions. (a) The following transactions are exempt from the tax 
1.8 	imposed in this chapter to the extent provided.
1.9 	(b) The purchase or use of aircraft previously registered in Minnesota by a 
1.10 	corporation or partnership is exempt if the transfer constitutes a transfer within the 
1.11 	meaning of section 351 or 721 of the Internal Revenue Code.
1.12 	(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer 
1.13 	of an aircraft for which a commercial use permit has been issued pursuant to section 
1.14 	360.654 is exempt, if the aircraft is resold while the permit is in effect. 
1.15 	(d) Airflight equipment when sold to, or purchased, stored, used, or consumed by 
1.16 	airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of 
1.17 	this subdivision, "airflight equipment" includes airplanes and parts necessary for the repair 
1.18 	and maintenance of such airflight equipment, and flight simulators, but does not include 
1.19 	airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or 
1.20 	irregularly timed flights. 
1.21 	(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined 
1.22 	in section 360.511 and approved by the Federal Aviation Administration, and which the 
1.23 	seller delivers to a purchaser outside Minnesota or which, without intermediate use, is 
1.24 	shipped or transported outside Minnesota by the purchaser are exempt, but only if the 
2.1 	purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter 
2.2 	returned to a point within Minnesota, except in the course of interstate commerce or 
2.3 	isolated and occasional use, and will be registered in another state or country upon its 
2.4 	removal from Minnesota. This exemption applies even if the purchaser takes possession of 
2.5 	the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes 
2.6 	for a period not to exceed ten days prior to removing the aircraft from this state. 
2.7 	(f) The sale or purchase of aircraft and aircraft equipment, including parts necessary 
2.8 	for repair and maintenance of such airflight equipment, as defined under Federal Aviation 
2.9 	Regulations, Part 135, that has a maximum certified takeoff weight of 6,000 pounds or 
2.10 	more are exempt.

2.11 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
2.12 	June 30, 2011.