HB 2533 Summary

• Amends transaction privilege and use tax law to expand exemptions for aircraft sales, including a new exemption for aircraft that will have operational control transferred to qualified operators.

• Requires persons purchasing aircraft for operational control transfer to provide certificates and documentation confirming the transfer will occur immediately after purchase, with operational control transferred for at least 50% of flight hours during a recapture period.

• Establishes recapture periods beginning when operational control is first transferred and ending on the later of full federal tax depreciation or five years after transfer, with penalties if operational control falls below 50% of flight hours during this period.

• Applies retroactively to taxable periods beginning after May 31, 1998, with a limited refund cap of $1,000 aggregate for valid claims filed by December 31, 2016.

• Effective June 30, 2017.