Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.26 - CORPORATE MULTISTATE ACTIVITIES
Subchapter 42.26.8 - Airlines
Rule 42.26.803 - THE PROPERTY FACTOR
Current through Register Vol. 6, March 22, 2024
(1) Owned aircraft shall be valued at its original cost and rented aircraft shall be valued at eight times the net annual rental rate in accordance with ARM 42.26.235 through 42.26.237. The use of the taxpayer's owned or rented aircraft in an interchange program with another air carrier will not constitute a rental of such aircraft by the airline to the other participating airline. Such aircraft shall be accounted for in the property factor of the owner/renter. Parts and other expendables, including parts for use in contract overhaul work, will be valued at cost.
(2) The denominator of the property factor shall be the average value of all of the taxpayer's real and tangible personal property owned or rented and used during the income year. The numerator of the property factor shall be the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the income year.
(3) In determining the numerator of the property factor, all property except aircraft ready for flight shall be included in the numerator of the property factor in accordance with ARM 42.26.231 through 42.26.237. Aircraft ready for flight shall be included in the numerator of the property factor in the ratio calculated as follows:
Sec. 15-1-201, 15-31-313, and 15-31-501, MCA; IMP, Sec. 15-1-601, 15-31-306, 15-31-307, and 15-31-312, MCA;
