ASSEMBLY, No. 2470

STATE OF NEW JERSEY

INTRODUCED NOVEMBER 14, 1996

By Assemblymen LeFEVRE and BLEE

An Act providing an exemption for certain aircraft repairs and services under the sales and use tax, amending P.L.1980, c.98.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 1 of P.L.1980, c.98 (C.54:32B-8.35) is amended to read as follows:

    1. Receipts from:

    a. sales of aircraft and repairs thereto including machinery or equipment to be installed on such aircraft and replacement parts therefor when utilized by an air carrier as defined by the Civil Aeronautics Board or the Code of Federal Regulations having its principal place of operations within the State an engaging in interstate, foreign, or intrastate air commerce; and

    b. charges for such services as the maintaining, servicing, or repairing of an aircraft at an airport facility funded with lease financing under the powers of the South Jersey Transportation Authority pursuant to P.L.1991, c.252 (C.27:25A-1 et seq.);

are exempt from the tax imposed under the Sales and Use Tax Act

(cf: P.L.1980, c.98, s.1)

    2. This act shall take effect immediately.

STATEMENT

    This bill expands the current sales and use tax exemption for sales of aircraft and aircraft repair service. Currently, aircraft sold to regulated commercial carriers, and the repairs to such aircraft, are exempt. This bill exempts the charges for services to maintain, service or repair any aircraft if the services are performed at an airport facility which was funded by lease financing under the South Jersey Transportation Authority powers. These services include, but are not limited to, producing, fabricating, processing, printing or imprinting tangible personal property at that facility.

Exempts certain aircraft repair and services from sales and use tax.