HBA-CBW H.B. 3390 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3390 By: Oliveira Ways & Means 3/30/2001 Introduced BACKGROUND AND PURPOSE Current law provides an exemption from limited sales, excise, and use taxes for machinery, tools, supplies, and equipment used or consumed exclusively in the repair, remodeling, or maintenance of aircraft, aircraft engines, or aircraft component parts by or on behalf of a certificated or licensed carrier or certain persons who use the aircraft for providing flight instruction recognized by the Federal Aviation Administration. However, the exemption does not include aircraft items used in the repair and maintenance of federal government aircraft. House Bill 3390 exempts from limited sales, excise, and use taxes the repair, remodeling, or maintenance of aircraft, aircraft engines, or aircraft component parts by or on behalf of the United States and its affiliates. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3390 amends the Tax Code to exempt from limited sales, excise, and use taxes machinery, tools, supplies, and equipment used or consumed exclusively in the repair, remodeling, or maintenance of aircraft, aircraft engines, or aircraft component parts by or on behalf of the United States (U.S.), an unincorporated instrumentality of the U.S., a corporation that is an agency or instrumentality of the U.S. and is wholly owned by the U.S. or by another corporation wholly owned by the U.S. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.