Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2013
Revenue and Taxation Code
Part 2. Assessment
Chapter 5. Special Types of Property
Article 7. Fractionally Owned Aircraft*
1161. Assessment; administrative procedures. (a) Notwithstanding any other law, fractionally owned aircraft that has situs in this state shall be assessed on a fleetwide basis to the manager in control of the fleet and a notice of that assessment shall be issued to that manager.
(1) Any fractionally owned aircraft that has been annually assessed for the fiscal years preceding the 2007–08 fiscal year shall be assessed under this article commencing with the 2007–08 fiscal year.
(2) For fractionally owned aircraft that have not been annually assessed for the fiscal years preceding the 2007–08 fiscal year, assessment under this article applies for the 2007–08 fiscal year and for each fiscal year thereafter, and for preceding fiscal years for which an assessment was not made, and for which a statute of limitations either does not apply or has been waived.
(b) A fleet of fractionally owned aircraft establishes situs in this state if an aircraft within the fleet makes a landing in the state.
(c) A fleet of fractionally owned aircraft shall be assessed on an allocated basis. An allocation factor shall be established in each county for each fleet type of fractionally owned aircraft for which situs in this state has been established as described in subdivision (b). This allocation factor is a fraction, the numerator of which is the total number of landings and departures made by the fleet type in the county during the previous calendar year and the denominator of which is the total number of landings and departures made by the fleet type worldwide during the previous calendar year.
History.—Added by Stats. 2007, Ch. 180 (SB 87), in effect August 24, 2007.
Note.—See note following Section 1160.
Constitutionality.—Assessment of personal property tax imposed on managers of fractionally owned aircraft is constitutional, as managers controlled the fractionally owned aircraft, and the aircraft had sufficient connection with California to justify the imposition of property tax. However, retroactive application is not constitutional because the statute constituted new law regarding the assessment of taxes on managers controlling fractionally owned aircraft fleets. NetJets Aviation, Inc. v. Guillory (2012) 207 Cal.App.4th 26.
* Article 7 was added by Stats. 2007, Ch. 180 (SB 87), in effect August 24, 2007.