FISCAL NOTE

House Bill 20 as passed the House of Representatives extends the sales tax exemption on parts, components, and systems for certain aircraft from May 30, 2022, currently, to May 30, 2032 which could decrease sales or use tax receipts otherwise received by the Education Trust Fund or State General Fund by an undetermined amount dependent upon the amount of sales exempted by the provisions of this bill.

This bill also repeals the current provision allowing this exemption to be extended by joint resolution.

As amended and reported by the Committee on Finance and Taxation Education, changes the sunset date for the sales tax exemption on parts, components and systems for certain aircraft to May 30, 2027, and provides that any exemption of sales tax allowed on contracts or projects entered into on or before May 30, 2027, shall not affect the availability of those exemptions until May 30, 2030. Further, this bill provides that the exemptions provided by this bill may not be extended, expanded, or modified by a Joint Resolution of the Legislature.