Laws, Regulations & Annotations

A

100.0000 AIRCRAFT

Annotation 100.0003

100.0003 Air Taxis. Pursuant to Revenue and Taxation Code section 1154(c), in general, county assessors should not apportion the value of nonscheduled air taxi aircraft, and instead should assess nonscheduled air taxi aircraft as general aircraft according to its situs. More specifically, county assessors cannot apportion the values of nonscheduled air taxi aircraft domiciled in California for any of the aircraft�s out-of-state activity without a showing by the taxpayer that the nonscheduled air taxi aircraft has established tax situs in another state, and cannot apportion the values of nonscheduled air taxi aircraft domiciled outside California without first showing that the nonscheduled air taxi aircraft has established tax situs within California.

The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) ensures that air carrier transportation property is not assessed at a higher ratio to market value than other commercial and industrial property. In making this comparison, it is the ratio to fair market value between aircraft and other commercial property that is compared, not the ratio of apportionment between aircraft types. Therefore, it is not a violation of TEFRA for California to assess unscheduled air taxi aircraft 100 percent to California and apportion the value of scheduled air taxi aircraft for activity outside of California. C 7/11/2014.