NOTE: The governor signed this measure on 6/6/2014.
      
      
      HOUSE BILL 14-1374
      
      
      BY REPRESENTATIVE(S) Holbert and Kraft-Tharp, Lee, Melton,
      Pettersen, Ryden, Saine, Schafer, Ferrandino;
      also SENATOR(S) Hodge and Scheffel, Crowder, Herpin, Jahn, Kefalas,
      Todd.
      
      
      Concerning the inclusion of on-demand air carriers in the sales
           and use tax exemption for certain aircraft.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, add 39-26-711.8 as
      follows:
      
           39-26-711.8.  Aircraft - use outside state - on-demand air
      carriers. (1)  Notwithstanding section 39-26-711.5, on and after
      July 1, 2014, but prior to July 1, 2019, the sale of a new or used
      aircraft shall be exempt from taxation under the provisions of
      part 1 and part 2 of this article if:
      
           (a)  The aircraft is purchased for use by an on-demand air
      carrier, regardless of whether the purchaser is a resident of the
      state;
      
           (b)  The aircraft will remain in the state only for the
      purpose of final assembly, maintenance, modification, or
      completion;
      
           (c)  The aircraft will be removed from the state within one
      hundred twenty days after the date of the sale; and
      
           (d)  The aircraft will not be in the state more than
      seventy-three days in any of the three calendar years following
      the calendar year in which the aircraft is removed from the state
      pursuant to paragraph (c) of this subsection (1).
      
           (2)  A purchaser of an aircraft who claims the exemption
      allowed by this section shall, at the time of purchase, provide to
      the seller an affidavit that the aircraft will be used by an
      on-demand air carrier and that the purchaser agrees to pay the
      tax imposed by part 1 or part 2 of this article, as applicable, if the
      purchaser fails to comply with the requirements of paragraphs
      (b), (c) and (d) of subsection (1) of this section.
      
           (3)  An aircraft that is hangared or parked overnight shall
      be considered to be in the state for purposes of this section.
      
           SECTION 2.  Effective date. This act takes effect July 1, 2014.
      
           SECTION 3.  Safety clause. The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ________________________________________________________
      Mark Ferrandino                        Morgan Carroll
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO