(a) (1) Any person, whether an established business or an individual, that is engaged in the business of selling aircraft in this state, holds a retail sales tax permit, and holds aircraft in stock for resale may purchase aircraft exempt for resale and use the aircraft for rental or charter service without payment of sales or use tax for a period not to exceed one (1) year from the date of purchase of the aircraft.(2) In the case of aircraft purchased for resale that require substantial modification or substantial refurbishing prior to resale, the purchaser may use the aircraft for rental or charter service without payment of sales or use tax for a period not to exceed two (2) years from the date of purchase of the aircraft.(3) As used in this subsection, “business of selling aircraft” means the purchase of aircraft for stock in trade and the management of aircraft inventory for the primary purpose of generating a profit from the resale of aircraft to customers.
(1) Any person, whether an established business or an individual, that is engaged in the business of selling aircraft in this state, holds a retail sales tax permit, and holds aircraft in stock for resale may purchase aircraft exempt for resale and use the aircraft for rental or charter service without payment of sales or use tax for a period not to exceed one (1) year from the date of purchase of the aircraft.
(2) In the case of aircraft purchased for resale that require substantial modification or substantial refurbishing prior to resale, the purchaser may use the aircraft for rental or charter service without payment of sales or use tax for a period not to exceed two (2) years from the date of purchase of the aircraft.
(3) As used in this subsection, “business of selling aircraft” means the purchase of aircraft for stock in trade and the management of aircraft inventory for the primary purpose of generating a profit from the resale of aircraft to customers.
(b) The use of the aircraft for rental or charter during the applicable one-year or two-year holding period described in subsection (a) of this section shall not constitute a withdrawal from stock, and the purchaser shall not be required to pay the sales tax on the purchase price of the aircraft held in stock and used for such purposes.
(c) The aircraft purchaser shall collect and remit gross receipts and short-term rental tax on the rentals and shall subsequently collect and remit the gross receipts tax on the aircraft at the time of subsequent sale in the manner required by law.
(d) If the purchaser fails to sell the aircraft during the applicable holding period, the purchaser shall be liable for sales or use tax on his or her purchase price of the aircraft.
(e) (1) A transaction in which a person acquires an aircraft for the purpose of renting or leasing the aircraft in the ordinary course of the person's business is exempt under this section only if the person establishes that the annual amount of the gross revenue derived from renting or leasing the aircraft, including any revenue from related party transactions, is equal to at least seven and five-tenths percent (7.5%) of the net acquisition price for the aircraft, including the value of any trade or exchange and excluding any sales commission paid to a third party.(2) The Department of Finance and Administration shall promulgate rules to prescribe the method of establishing the annual amount of the gross revenue derived from renting or leasing an aircraft under this subsection.
(1) A transaction in which a person acquires an aircraft for the purpose of renting or leasing the aircraft in the ordinary course of the person's business is exempt under this section only if the person establishes that the annual amount of the gross revenue derived from renting or leasing the aircraft, including any revenue from related party transactions, is equal to at least seven and five-tenths percent (7.5%) of the net acquisition price for the aircraft, including the value of any trade or exchange and excluding any sales commission paid to a third party.
(2) The Department of Finance and Administration shall promulgate rules to prescribe the method of establishing the annual amount of the gross revenue derived from renting or leasing an aircraft under this subsection.
(f) The exemption allowed under this section applies regardless of the relationship, if any, between the person providing the aircraft for rent or lease and the person renting or leasing the aircraft.