|SB 0699||Various modifications to tax laws affecting commercial airlines|
|LR Number:||2528S.01I||Fiscal Note:||2528-01|
|Committee:||Ways and Means|
|Last Action:||01/14/02 - Second Read and Referred S Ways & Means Committee||Journal page:||S80|
SB 699 - This act provides various forms of economic stimulus to the commercial airline industry in Missouri following the airline hijackings and attacks of September 11, 2001.
The act allows taxpayers a deduction from their Missouri adjusted gross income for the cost of airline tickets purchased for flights occurring between January 1, 2002 and December 31, 2003. It also creates a sales tax exemption for passenger tickets sold for commercial airline flights (this provision sunsets on 12/31/2003).
The act places a 2-year moratorium on corporate franchise taxes for commercial airline companies operating in Missouri. It also allows airline companies to defer payments of corporate income taxes and wage withholding taxes for up to 180 days (this provision sunsets on 12/31/2003).
The act temporarily expands the existing sales and use tax exemption for jet fuel. For a 2-year period, the act removes the $1.5 million threshold amount that airline companies must pay before qualifying for the sales tax exemption on jet fuel.
The act temporarily expands the existing sales and use tax exemption for purchase and storage of tangible personal property by commercial airlines. For a 2-year period, the act removes the $300,000 annual cost of qualifying for this exemption. The act also removes the exception for catered food and beverage products.
The act allows a tax credit for commercial airline companies for the cost of training their employees in airline flight security, airport security, and passenger and baggage screening. The credit may be in an amount up to $1,500 per employee per year and has an aggregate annual cap (maximum cost to the state) of $1.5 million.
The act has an emergency clause.