Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter O - STATE AND LOCAL SALES AND USE TAXES › Section 3.280 - Aircraft

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions. The following words and
				  terms, when used in this section, shall have the following meanings, unless the
				  context clearly indicates otherwise.
(1)
				  Affiliate--A member of a group of entities in which a controlling interest is
				  owned by a common owner or owners, either corporate or noncorporate, or by one
				  or more of the member entities.
(2)
				  Agricultural aircraft operation--The operation of an aircraft licensed by the
				  FAA under 14 Code of Federal Regulations, Part 137. Agricultural aircraft
				  operations include crop dusting, pollination, and seeding.
(3) Agricultural use--This term includes, but
				  is not limited to, the following activities: cultivating the soil, producing
				  crops for human food, animal feed, or planting seed or for the production of
				  fibers; floriculture, viticulture, and horticulture; raising or keeping
				  livestock; raising or keeping exotic animals for the production of human food
				  or of fiber, leather, pelts, or other tangible products having a commercial
				  value; planting cover crops or leaving land idle for the purpose of
				  participating in a governmental program, provided the land is not used for
				  residential purposes or a purpose inconsistent with agricultural use; and
				  planting cover crops or leaving land idle in conjunction with normal crop or
				  livestock rotation procedure. The term also includes the use of land to produce
				  or harvest logs and posts for the use in constructing or repairing fences,
				  pens, barns, or other agricultural improvements on adjacent qualified
				  open-space land having the same owner and devoted to a different agricultural
				  use. The term also includes the use of land for wildlife management. The term
				  also includes the use of land to raise or keep bees for pollination or for the
				  production of human food or other tangible products having a commercial value,
				  provided that the land used is not less than 5 or more than 20 acres.
(4) Aircraft--A fixed-wing, heavier-than-air
				  craft that is operated by a pilot from within the craft, is driven by propeller
				  or jet and is supported by the dynamic reaction of the air against its wings; a
				  helicopter; or an airplane flight simulation training device approved by the
				  FAA under Appendices A and B, 14 Code of Federal Regulations, Part 60. The term
				  does not include balloons, gliders, rockets, missiles, or unmanned aerial
				  vehicles.
(5) Certificated or
				  licensed carrier--A person authorized by the FAA to operate an aircraft to
				  transport persons or property in compliance with the certification and
				  operations specifications requirements of 14 Code of Federal Regulations, Part
				  121, 125, 133, or 135. Letters of authorization, certificates of inspection,
				  and airworthiness certificates are not appropriate evidence of authority to
				  operate as a certificated or licensed carrier.
(6) Component part--Tangible personal
				  property that is intended to be permanently affixed to, and become a part of,
				  an aircraft; is necessary to the normal operations of the aircraft, or is
				  required by FAA regulations; and is secured or attached to the aircraft. The
				  term includes tangible personal property necessary to the normal operations of
				  the aircraft that can be removed temporarily from the aircraft for servicing,
				  such as engines, seats, radar equipment, and other electronic devices used for
				  navigational or communications purposes, and air cargo containers, food carts,
				  fire extinguishers, survival rafts, and emergency evacuation slides. Items such
				  as pillows, blankets, trays, ice for drinks, kitchenware, and toilet articles
				  are not component parts.
(7)
				  Consumable supplies--Tangible personal property that is used by a service
				  provider to repair, remodel, maintain, or restore tangible personal property
				  belonging to another; is not transferred into the care, custody, or control of
				  the purchaser of the service; and, having been used once for its intended
				  purpose, is completely used up or destroyed. Examples of consumable supplies
				  include, but are not limited to, canned air used to remove dust from equipment
				  and solvents used to clean equipment parts.
(8) Exotic animals--Livestock and fowl that
				  are not indigenous to Texas and are defined as exotic livestock or exotic fowl
				  by Agriculture Code, §
											161.001(a)
				  (Definitions). Examples include, but are not
				  limited to, nilgai antelope, blackbuck antelope, axis deer, fallow deer, sika
				  deer, aoudad, ostriches, and emus.
(9) Extended warranty or service policy--A
				  contract sold to the purchaser of tangible personal property for an amount in
				  addition to the charge for the tangible personal property, or sold to an owner
				  of tangible personal property, to extend the terms of the manufacture's written
				  warranty or provide a warranty in addition to or in place of the manufacture's
				  written warranty.
(10) FAA--Federal
				  Aviation Administration, an agency of the United States Department of
				  Transportation.
(11) Incorporated
				  materials--Tangible personal property that is attached or affixed to, and
				  becomes a part of, an aircraft, aircraft engine, or component part in such a
				  manner that the property loses its distinct identity as separate tangible
				  personal property.
(12)
				  Livestock--Horses, mules, donkeys, llamas, alpacas, and animal life of a kind
				  that ordinarily constitutes food for human consumption. The term livestock does
				  not include wildlife or pets.
(13)
				  Lump-sum contract--A written agreement in which the agreed price is one
				  lump-sum amount and in which the charge for incorporated materials is not
				  separated from the charge for skill and labor. Separated invoices or billings
				  issued to the customer will not change a written lump-sum contract into a
				  separated contract unless the terms of the contract require separated invoices
				  or billings.
(14) Maintain--To
				  perform maintenance.
(15)
				  Maintenance--Work performed on operational and functioning tangible personal
				  property that is necessary to sustain or support safe, efficient, and
				  continuous operation of the tangible personal property, or is necessary to keep
				  the tangible personal property in good working order by preventing decline,
				  failure, lapse, or deterioration.
(16) Manufacturer's written warranty--A
				  manufacturer's guarantee made for no additional charge to the purchaser of an
				  item of tangible personal property that the item is operable and will remain
				  operable for a specified period of time.
(17) Operational control--This term has the
				  meaning assigned by FAA regulations and includes the exercise of authority over
				  initiating, conducting, or terminating a flight.
(18) Predator control--A form of wildlife and
				  exotic animal management regulated by the Texas Department of Parks and
				  Wildlife under Parks and Wildlife Code, Chapter 43, Subchapter G (Permits to
				  Manage Wildlife and Exotic Animals from Aircraft) used to protect or aid in the
				  administration or protection of land, water, wildlife, livestock, domesticated
				  animals, human life, or crops. Feral hog eradication using an aircraft is one
				  form of predator control.
(19)
				  Qualified flight instruction--Training recognized by the FAA that is designed
				  to lead to a pilot certificate or rating issued by the FAA, or is otherwise
				  required by rule or regulation of the FAA, and that is conducted under the
				  direct or general supervision of a flight instructor certified by the FAA.
				  Qualified flight instruction includes FAA-required check flights, maintenance
				  flights, and test flights, but does not include demonstration flights for
				  marketing purposes or training in aerobatic maneuvers.
(20) Remodel--To modify or remake tangible
				  personal property belonging to another in a similar but different manner, or to
				  change the style, shape, or form of tangible personal property belonging to
				  another, without causing a loss of its identity or without causing it to
				  operate in a new or different manner. Remodeling does not include
				  processing.
(21) Repair--To mend or
				  restore to working order or operating condition tangible personal property that
				  was broken, damaged, worn, defective, or malfunctioning.
(22) Restore--To return tangible personal
				  property that is still operational and functional, but that has faded,
				  declined, or deteriorated, to its former or original state.
(23) Sale for resale--The sale, lease, or
				  rental of an aircraft to a person who acquires the aircraft for the purpose of
				  leasing, renting, or reselling the aircraft to another person, or for the
				  purpose of transferring operational control of the aircraft to one or more
				  persons pursuant to one or more written lease agreements, in exchange for a
				  fixed, variable, or periodic consideration, whether or not the consideration is
				  in the form of a cash payment, in the United States of America or a possession
				  or territory of the United States of America or in the United Mexican States in
				  the form or condition in which the aircraft is acquired.
(24) Separated contract--A written agreement
				  in which the agreed price is divided into a separately stated charge for
				  incorporated materials and a separately stated charge for skill and labor. An
				  agreement is a separated contract if the charge for incorporated materials and
				  the charge for labor are separately stated on an invoice or billing that,
				  according to the terms of the contract, is deemed to be a part of the contract.
				  Adding the separated charge for incorporated materials and the separated charge
				  for labor together to give a lump-sum total does not transform a separated
				  contract into a lump-sum contract. An aircraft completion, repair, remodeling,
				  maintenance, or restoration contract that separates the charge for incorporated
				  materials from the charge for labor is a separated contract even if the charge
				  for labor is zero.
(25) Service
				  provider--A person who repairs, remodels, maintains, or restores tangible
				  personal property belonging to another.
(26) Wildlife--Animals, other than insects,
				  that normally live in a state of nature and are not ordinarily
				  domesticated.