California Code of Regulations
Title 18 - Public Revenues
Division 1 - State Board of Equalization-Property Tax (California Department of Tax and Fee Administration - Timber Yield Tax, See Chapter 11)
Chapter 2 - Assessment
Article 3 - Exemptions and Immunities
Section 138 - Exemption for Aircraft Being Repaired, Overhauled, Modified or Serviced
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Scope of Exemption. Any aircraft, certificated or noncertificated, which is in California on the lien date solely for the purpose of being repaired, overhauled, modified, or serviced is exempt from personal property taxation. Aircraft operated intrastate in or interstate into California and aircraft normally based in California do not qualify for exemption.
(b) Qualifying Certificated Aircraft. Aircraft that qualify for exemption include certificated aircraft that have been taken out of revenue service by an air carrier:
Aircraft in California solely for the purposes described in subsection (b)(1) include any incidental and attendant storage.
(c) Interstate Operation. Certificated aircraft that have been taken out of revenue service under the provisions of subsection (b) above as of the lien date are not aircraft operated interstate into California for purposes of this rule.
(d) The Valuation of Certificated Aircraft. Certificated aircraft, located in or outside of the state, that have been taken out of revenue service under the provisions of subsection (b) above, shall not be valued pursuant to section 401.15 of the Revenue and Taxation Code nor included in the allocation formula of section 1152 of the Revenue and Taxation Code and rule 202, until the lien date next following the date that such aircraft are returned to revenue service.
(e) Reporting by Air Carriers. When filing business property statements, air carriers shall indicate on the property statement or an attachment to the property statement those certificated aircraft which qualify for exemption pursuant to this section. Air carriers shall maintain records adequate to verify that these aircraft qualify for exemption.
1. New
section filed 12-14-2001 as an emergency; operative 12-14-2001 (Register 2001,
No. 50). A Certificate of Compliance must be transmitted to OAL by 4-15-2002 or
emergency language will be repealed by operation of law on the following
day.
2. New section refiled 4-3-2002 as an emergency; operative
4-3-2002 (Register 2002, No. 14). A Certificate of Compliance must be
transmitted to OAL by 8-1-2002 or emergency language will be repealed by
operation of law on the following day.
3. Certificate of Compliance
as to 4-3-2002 order transmitted to OAL 4-8-2002 and filed 5-20-2002 (Register
2002, No. 21).
4. Editorial correction of subsection (d) (Register
2002, No. 35).
Note: Authority cited: Section 15606, Government Code. Reference: Sections 220, 1150, 1151, 1152 and 1154, Revenue and Taxation Code.
