26 U.S. Code § 4043 - Surtax on fuel used in aircraft part of a fractional ownership program
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(a) In general
There is hereby imposed a tax on any liquid used (during any calendar quarter by any person) in a fractional program aircraft as fuel—
(1) for the transportation of a qualified fractional owner with respect to the fractional ownership aircraft program of which such aircraft is a part, or
(c) Definitions and special rules
For purposes of this section—
(1) Fractional program aircraft
The term “fractional program aircraft” means, with respect to any fractional ownership aircraft program, any aircraft which—
(A) is listed as a fractional program aircraft in the management specifications issued to the manager of such program by the Federal Aviation Administration under subpart K of part 91 of title 14, Code of Federal Regulations, and
(2) Fractional ownership aircraft program
The term “fractional ownership aircraft program” means a program under which—
(A) a single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners,
(B) there are 1 or more fractional owners per fractional program aircraft, with at least 1 fractional program aircraft having more than 1 owner,
(C) with respect to at least 2 fractional program aircraft, none of the ownership interests in such aircraft are—
(3) Definitions related to fractional ownership interests
(A) Qualified fractional owner
The term “qualified fractional owner” means any fractional owner which has a minimum fractional ownership interest in at least one fractional program aircraft.
(B) Minimum fractional ownership interest
The term “minimum fractional ownership interest” means, with respect to each type of aircraft—
(i) a fractional ownership interest equal to or greater than 1/16 of at least 1 subsonic, fixed wing, or powered lift aircraft, or
(C) Fractional ownership interest
The term “fractional ownership interest” means—
(4) Dry-lease aircraft exchange
The term “dry-lease aircraft exchange” means an agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as needed basis without crew, to each fractional owner.
(5) Special rule relating to use of fractional program aircraft for flight demonstration, maintenance, or training
For purposes of subsection (a), a fractional program aircraft shall not be considered to be used for the transportation of a qualified fractional owner, or on account of such qualified fractional owner, when it is used for flight demonstration, maintenance, or crew training.
Source(Added Pub. L. 112–95, title XI, § 1103(a)(1),Feb. 14, 2012, 126 Stat. 149.)
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