Relating to aircraft, including special certificates issued to aircraft manufacturers, transporters, and dealers, and sales tax exemptions associated with aircraft, providing fees, making penalties applicable, and including effective date and applicability provisions

SPECIAL CERTIFICATES. Under current law, an aircraft manufacturer or dealer may operate an aircraft for purposes of transporting, testing, demonstrating, or selling the aircraft without registering the aircraft by obtaining a special certificate from the department of transportation (DOT). This bill limits the period a manufacturer or dealer may operate the aircraft under a special certificate to three years. The bill increases the annual fee for a special certificate from $100 to $400, and provides that a special certificate expires at midnight on October rather than midnight on June 30. The bill provides that the DOT may refuse to issue, or may revoke or suspend, a special certificate if the person making application for, or holding, the special certificate operated such an aircraft after three years of holding a special certificate for the aircraft in violation of the bill.21 are required to be deposited in the state aviation fund. The bill specifies that fees received by the DOT for the issuance of special certificates must also be deposited in the state aviation fund, in accordance with the current practice. These provisions take effect June 30, 2022, and apply to special certificates issued by the DOT that are valid for a period beginning after midnight on June 30, 2022. The bill provides that special certificates issued by the DOT that are valid for a period beginning after midnight on June 30, 2022, but beginning before midnight on October 31, 2022, shall expire at midnight on October 31, 2023, and the validity period for such special certificates shall count as only one year for purposes of the bill.40 provides that any person who violates any of the provisions of Code chapter 328 shall be guilty of a fraudulent practice.13. SALES AND USE TAX EXEMPTIONS.3 exempts from the Iowa sales and use tax, among other things, the sale or use of aircraft component parts permanently attached to an aircraft, including repair or replacement materials or parts, and repair, remodeling, and maintenance services used on an aircraft, aircraft engine, or aircraft component materials or parts, provided the aircraft is used in either a scheduled or nonscheduled interstate federal aviation administration (FAA) certified air carrier operation (scheduled or nonscheduled FAA operation). The bill removes the requirement that the aircraft be used in a scheduled or nonscheduled FAA operation to qualify for the exemption. The sale or use of the component parts and services described above will be exempt from the sales and use tax when permanently attached to or performed on any aircraft. The bill defines “aircraft” to mean the same as it does for purposes of Code chapter 328 (aeronautics), which includes any contrivance now known, or hereafter invented, used or designed for navigation of or flight in the air, for the purpose of transporting persons or property, or both.3(75) to strike similar language relating to the sales and use tax exemption described in the bill.