MI SB0886

Exempts use tax on parts and materials affixed to aircraft owned or used by domestic air carriers if the aircraft has a maximum certificated takeoff weight of at least 6,000 pounds and is used solely for transporting air cargo, passengers, or a combination thereof.

Exempts use tax on parts and materials affixed to aircraft that leave Michigan within 15 days after sale completion and any associated prepurchase evaluation, customization, improvement, maintenance, or repair.

Removes the requirement that aircraft must not be based or registered in Michigan before or after parts are affixed or before or after sale completion.

Adds definition of "aircraft" to exclude unmanned aerial vehicles and makes technical clarifications to existing definitions in the statute.

Takes effect 90 days after enactment and directs the legislature to annually appropriate funds to the state school aid fund to compensate for revenue losses resulting from the exemptions.