SB 1329: Property taxation: certificated aircraft.
- Session Year: 2015-2016
- House: Senate
Existing property tax law requires the personal property of an air carrier to be taxed at its fair market value, and the California Constitution requires property subject to ad valorem property taxation to be assessed in the county in which it is situated. Existing law, for the 200506 fiscal year to the 201617 fiscal year, inclusive, specifies a formula to determine the fair market value of certificated aircraft of a commercial air carrier, and rebuttably presumes that the amount determined pursuant to this formula is the fair market value of the certificated aircraft. Under existing law, the preallocated fair market value of certificated aircraft is the lesser of the original cost for the aircraft, calculated as specified, or the value of a used aircraft, determined as provided and reduced by 10% for a fleet discount or, for certain individual aircraft, the lesser of 5% or 1/2 of the percentage decrease between the original cost and 90% of the value, as specified. Existing law, until December 31, 2016, requires the Aircraft Advisory Subcommittee of the California Assessors Association to designate, after soliciting input from commercial air carriers operating in the state, a lead county assessors office for each commercial air carrier operating certificated aircraft in this state in an assessment year, and requires the lead county assessor to calculate the value of the air carriers personal property and to transmit these calculations to other county assessors, but specifies that each county assessor is responsible for assessing and enrolling the taxable value of the property in his or her county, as provided. Existing law, until December 31, 2016, also requires the lead county assessors office to lead a team to audit the books and records of commercial air carriers and requires a commercial air carrier that receives a notice of the designation of a lead county assessors office to file one signed property statement with the lead county assessors office for its personal property at all airport locations and fixtures at all airport locations.
This bill would apply a similar formula for determining the fair market value of certificated aircraft for the 201718 fiscal year to the 202122 fiscal year, inclusive, but would not include the above-described 10% reduction for a fleet discount, and, for valuing individual aircraft, would instead provide that the value is the lesser of 5% or 1/2of the percentage decrease between the original cost and the full value, rather than between the original cost and 90% of the full value. The bill would extend the December 31, 2016, inoperative or repeal date to December 31, 2021, for the above-described provisions relating to the determination of the fair market value and taxation of certificated aircraft.
Existing property tax law requires courts to give precedence to actions brought under provisions governing property taxes, with the exclusion of actions to recover taxes levied on state-assessed property, over all other civil actions, except actions to which special precedence is given by law.
This bill, until January 1, 2022, would additionally exclude from this requirement property tax refund proceedings for certificated aircraft.
Existing property tax law provides, with respect to suits for refund of state-assessed taxes, that the trial court is not restricted to the administrative record, but is required to consider all relevant admissible evidence.
This bill, until January 1, 2022, would extend these provisions to property tax refund proceedings involving certificated aircraft that are filed on or after January 1, 2017.
This bill would extend the 201617 fiscal year termination date to the 201718 fiscal year and the December 31, 2016, inoperative or repeal date to December 31, 2017, for the above-described provisions relating to the determination of the fair market value and taxation of certificated aircraft.
By extending the application of the aforementioned valuation process for certificated aircraft beyond the 201617 fiscal year, thereby imposing new duties upon a lead county assessors office, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
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