ARTICLE 6. Certificated Aircraft [1150. - 1157.]

Cal. Revenue and Taxation Code - RTC 6.

in effect

Cal. Revenue and Taxation Code - RTC § 1150. Section 1150.

As used in this article, “certificated aircraft” means aircraft operated by an air carrier or foreign air carrier engaged in air transportation, as defined in Section 40102(a)(2), (5), (6), and (21) of Title 49 of the United States Code, while there is in force a certificate or permit issued by the Federal Aviation Administration, or its successor, authorizing such air carrier to engage in such transportation.

Cal. Revenue and Taxation Code - RTC § 1151. Section 1151.

Certificated aircraft shall be deemed to be situated in this state only to the extent that such aircraft are normally physically present within the state, whether in flight or on the ground. To determine such extent for purposes of property taxation, the allocation formula specified by Section 1152 shall be applied.

Cal. Revenue and Taxation Code - RTC § 1152. Section 1152.

For fiscal years before the 2020–21 fiscal year, 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 until the 2020–21 fiscal year, inclusive, 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. (f) This section shall become inoperative on January 1, 2020.

Cal. Revenue and Taxation Code - RTC § 1153.5. Section 1153.5.

(a) The Aircraft Advisory Subcommittee of the California Assessors’ Association shall, after soliciting input from commercial air carriers operating in the state, do both of the following: (1) On or before March 1, 2020, and on or before each March 1 thereafter, designate a lead county assessor’s office for each commercial air carrier operating certificated aircraft in this state in that assessment year. (2) Every third year thereafter, redesignate a lead county assessor’s office for each of these air carriers, unless an air carrier and its existing lead county assessor’s office concur to waive this redesignation. (b) The lead county assessor’s office described in subdivision (a) shall do all of the following: (1) Calculate an unallocated value of the certificated aircraft of each commercial air carrier to which that assessor is designated. (2) Electronically transmit to the assessor of each county in which the property described in paragraph (1) has situs for the assessment year the values determined by the lead county assessor’s office under paragraph (1). (3) Receive the property statement, as described in subdivision (m) of Section 441, of each commercial air carrier to which the assessor is designated. (4) Receive and electronically transmit to the assessor of each affected county flight data received pursuant to paragraph (3) of subdivision (m) of Section 441. (5) Lead the audit team described in subdivision (d) when that team is conducting an audit of a commercial air carrier to which the assessor is designated. (6) Notify, in writing, each commercial air carrier for which the assessor has been designated of this designation on or before the first March 15 that follows that designation. (c) (1) Notwithstanding subdivision (b), the county assessor of each county in which the personal property of a commercial air carrier has situs for an assessment year is solely responsible for assessing that property, applying the allocation formula set forth in Section 1152, and enrolling the value of the property in that county, but, in determining the allocated fleet value for each make, model, and series of certificated aircraft of a commercial air carrier, the assessor may consult with the lead county assessor’s office designated for that commercial air carrier. (2) The lead county assessor’s office is subject to Section 322 of Title 18 of the California Code of Regulations and Sections 408, 451, and 1606 to the same extent as the assessor described in paragraph (1). (d) (1) Notwithstanding Section 469, an audit of a commercial air carrier shall be conducted once every four years on a centralized basis by an audit team of auditor-appraisers from at least one, but not more than three, counties, as determined by the Aircraft Advisory Subcommittee of the California Assessors’ Association. An audit, so conducted, shall encompass all of the California Personal Property and fixtures of the air carrier and is deemed to be made on behalf of each county for which an audit would otherwise be required under Section 469. (2) The audit team described in paragraph (1) shall do both of the following: (A) Be the point of contact for all aircraft-related questions to or from each county and the commercial air carrier. (B) Ensure that all aircraft-related concerns regarding the taxable value of the aircraft and aircraft parts are resolved with each county before finalizing the aircraft assessment with the commercial air carrier.

Cal. Revenue and Taxation Code - RTC § 1154. Section 1154.

(a) As used in this section, “air taxi” means aircraft used by an air carrier which does not utilize aircraft having a maximum passenger capacity of more than 60 seats or a maximum payload capacity of more than 18,000 pounds in air transportation and which holds a certificate of public convenience and necessity or other economic authority issued by the United States Department of Transportation, or its successor. (b) Air taxis which are operated in scheduled air taxi operations are not subject to the provisions of Part 10 (commencing with Section 5301) of this division and shall be assessed in accordance with the allocation formula set forth in Section 1152. (c) All other air taxis shall be assessed in the county where the aircraft is habitually situated in the same manner and at the same ratio as other personal property in the county subject to general property taxation. Such aircraft shall be taxed at the same rate and in the same manner as all other property on the unsecured roll.

Cal. Revenue and Taxation Code - RTC § 1155. Section 1155.

For purposes of Section 404, certificated aircraft shall be deemed to be situated only in those taxing agencies in which the aircraft normally make physical contact with sufficient regularity to entitle such agencies to tax the aircraft under the laws and Constitution of the United States. Flight time within the state shall be allocated as follows: (a) If the aircraft takes off in one taxing agency which is entitled to tax (within the meaning of the preceding sentence) and lands in another agency which is entitled to tax, the flight time between such taxing agencies shall be allocated one-half to each such agency. (b) If the aircraft arrives from out of state or leaves the state, the flight time from or to the state boundary shall be allocated to the taxing agency entitled to tax in which the aircraft first lands or last takes off, as the case may be.

Cal. Revenue and Taxation Code - RTC § 1156. Section 1156.

Nothing in this article shall be construed to enlarge the right of any taxing agency to tax certificated aircraft in a manner not permitted by the laws or Constitution of the United States.

Cal. Revenue and Taxation Code - RTC § 1157. Section 1157.

(a) After consultation with the California Assessors’ Association and representatives of commercial air carriers, the board shall, by emergency regulation, promulgate regulations and produce forms and instructions necessary to implement the allocation formula established for the 2020–21 fiscal year, and for each fiscal year thereafter, pursuant to Section 1152. (b) An emergency regulation adopted pursuant to subdivision (a) shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Sections 11346.1 and 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026