MI SB0885

Exempts aircraft sales to domestic air carriers from state sales tax if the aircraft weighs at least 6,000 pounds maximum certificated takeoff weight and is used solely for transporting air cargo, passengers, or both.

Eliminates the 15-day departure requirement and in-state basing restrictions for sales of parts and materials affixed to aircraft, applying the exemption to all aircraft parts and materials (excluding shop equipment or fuel).

Removes location and timing restrictions from the aircraft sales exemption for aircraft temporarily in Michigan for prepurchase evaluation, customization, improvement, maintenance, or repair.

Exempts aircraft sales to lessors when the aircraft will be leased to domestic air carriers operating under Federal Aviation Administration Part 121 certificate for regularly scheduled passenger transport.

Takes effect 90 days after enactment, with the legislature directed to annually appropriate funds from the state general fund to the state school aid fund to compensate for revenue loss.