Currently, the sale of a new or used aircraft that is purchased by a person who is not a resident of the state and the sale of a new or used aircraft that is purchased for use by an on-demand carrier (aircraft), regardless of whether the purchaser is a resident of the state, are exempt from sales and use tax if certain criteria are satisfied.

One of the criteria to qualify for the sales and use tax exemption is that the aircraft will be removed from the state within 120 days after the date of the sale. The bill modifies this criteria and requires that the aircraft be removed from the state within 120 days after the date of the sale or within 30 days after the completion of certain work on the aircraft that is associated with the sale of the aircraft, whichever is longer.