Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

Chapter 5. Special Types of Property

Article 6. Certificated Aircraft*

Section 1152

1152. Allocation formula. The allocation formula to be used by each assessor is as follows:

(a) The time in state factor is the proportionate amount of time, both in the air and on the ground, that certificated aircraft have spent within the state during a representative period as compared to the total time in the representative period. For purposes of this subdivision, all time, both in the air and on the ground, that certificated aircraft have spent within the state prior to the aircraft's first entry into the revenue service of the air carrier in control of the aircraft on the current lien date shall be excluded from the time in state factor. This factor shall be multiplied by 75 percent.

(b) The arrivals and departures factor is the proportionate number of arrivals in and departures from airports within the state of certificated aircraft during a representative period as compared to the total number of arrivals in and departures from airports during the representative period. This factor shall be multiplied by 25 percent.

(c) For the 1983–84 fiscal year and fiscal years thereafter, in computing the time-in-state factor, on each occasion during the representative period that a certificated aircraft has spent 720 or more consecutive hours on the ground, all ground time in excess of 168 hours shall be excluded from the time in state attributable to that aircraft.

(d) The time in state factor shall be added to the arrivals and departures factor.

(e) The figure produced by application of subdivision (d) equals the allocation to be applied to full cash value to determine the value to which the assessment ratio shall be applied.

History.—Stats. 1973, Ch. 1169, p. 2444, in effect January 1, 1974, operative March 1, 1974, added "(1) For the 1974–75 fiscal year to the 1979–80 fiscal year, inclusive" after subdivision (a), and added "factor" after "state" in the first sentence of subdivision (a)(1); added the second sentence of subdivision (a)(1); and added subdivision (a)(2). Stats. 1980, Ch. 610, in effect July 18, 1980, deleted "(1)" at the beginning of, substituted "1980–81" for "1974–75" and "and fiscal years thereafter" for "to the 1979–80 fiscal year, inclusive," in the first sentence of, and deleted "and on groundtime that certificated aircraft has spent within the state in excess of 12 consecutive hours" after "revenue flight" in the second sentence of, and deleted subdivision (a)(2). Stats. 1982, Ch. 1219, in effect January 1, 1983, deleted "for the 1980–81 fiscal year and fiscal years thereafter," before "The" at the beginning of the first sentence, and substituted "have" for "has" after "aircraft", substituted "first entry . . . lien date" for "first revenue flight" before "shall be", and deleted "the computation of" before "the time" in the second sentence of subdivision (a); added "The" before "arrivals", added "factor" before and "proportionate" after "is the", and substituted "during" for "both within this state and elsewhere in" after the second "airports" in the first sentence of subdivision (b); added subdivision (c); relettered former subdivisions (c) and (d) is (d) and (e), respectively; and substituted "(d)" for "(e)" after "subdivision" in subdivision (e).

Note.—Section 3 of Stats. 1973, Ch. 1169, p. 2445, provided the State Board of Equalization shall compute the reduction in revenues because of this act which would have taken place had the act been in effect in 1972–73, and the reduction shall be the basis for computing reimbursement for 1974–75 and later years.

Note.—Section 11.5 of Stats. 1980, Ch. 610, provided no payment by state to local governments because of this act, however, a local agency or school district may pursue other remedies to obtain reimbursement.

Note.—Section 14 of Stats. 1980, Ch. 610, provided the Legislature finds and declares that time spent within the state by a certificated aircraft prior to its first revenue flight is not representative of that aircraft's "normal physical presence within the state" as that phrase is used in Section 1151 of the Revenue and Taxation Code. The inclusion of such pre-revenue flight time in the allocation formula established pursuant to subdivision (a) of Section 1152 of the Revenue and Taxation Code distorts the predicted pattern of usage within the state during the ensuing tax year and creates an arbitrary and discriminatory basis for allocation of the taxable value of the aircraft. Section 3 of this act, which provides for the continued exclusion of time-in-state prior to an aircraft's first revenue flight from the allocation formula established in Section 1152 of the Revenue and Taxation Code, is necessary to carry out the legislative scheme for taxation of certificated aircraft and to prevent arbitrary and discriminatory taxation of newly acquired aircraft. Accordingly, the application of Section 1152 of the Revenue and Taxation Code as amended by Section 3 of this act to the 1980–81 fiscal year is necessary to accomplish these public purposes.

Note.—Section 2 of Stats. 1982, Ch. 1219, provided the amendment to subdivision (a) of Section 1152 of the Revenue and Taxation Code made by this act is declaratory of existing law.

Construction.—An assessor's formula to account for time an aircraft is in other states may be used even if the combined valuation of the aircraft by the other state and California exceeds 100 percent of the value of the property so long as the assessor's formula is not arbitrary and is rationally related to the opportunities, benefits, and protections afforded to the taxpayer by California. Auerbach v. Los Angeles County Assessment Appeals Board No. 2; TWC Aviation, Inc., 167 Cal.App.4th 1415.

* Article 6 was added by Stats. 1968, p. 2460, in effect August 13, 1968.