Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2018

Revenue and Taxation Code

Property Taxation

Part 10. Aircraft Assessment and Taxation


Section 5391

5391. Rate of tax. For the 1980–81 fiscal year and each fiscal year thereafter, aircraft subject to this part shall be taxed at the same rate and in the same manner as all other personal property. Aircraft which are considered business inventories, within the meaning of Section 129 of the Revenue and Taxation Code, shall be included in the inventory exemption.

History.—Added by Stats. 1961, p. 3682, in effect September 15, 1961. Stats. 1976, Ch. 929, p. 2128, in effect January 1, 1977, substituted "the time of levying county property taxes" for "September 1, of" in the first sentence. Stats. 1980, Ch. 610, in effect July 18, 1980, substituted the first paragraph for the former first paragraph.

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 13 of Stats. 1980, Ch. 610, provided that the 100 percent exemption for business inventories shall apply to aircraft beginning with the 1980–81 fiscal year. The Legislature finds and declares that there is a public purpose for the expenditure of these public funds; namely, to prevent the inequity that would result if all other businesses received a business inventory exemption and aircraft dealers did not; to correct the oversight by which the exemption was not extended to aircraft and provide, thereby, fairness in the tax system; and to complete the elimination of the tax on business inventories which has been found to be detrimental to the business climate of the state and therefore the general welfare of its citizens.