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Non-Commercial (private) Aircraft

 

Why are Non-Commercial Aircraft Taxed?

Section 5301 of the California Revenue and Taxation Code requires the annual assessment of non-commercial aircraft to the owners as of January 1 of each year.

Aircraft of historical significance may be eligible for exemption, if certain criteria are met. For more information, please call (951) 955-6260.

Determining the Situs of the Aircraft

Non-commercial aircraft has situs for taxation purposes at the airport in which they are habitually situated when not in flight. (Property Tax Rule 205(b); Revenue and Taxation Code 5362)

For an aircraft that has a primary situs in California, the assessment must be apportioned to eliminate the time the aircraft has established tax situs outside California. All the remaining time, whether or not in California, is allocated to the California airport where it spends the greatest amount of ground time.

For an aircraft that has a primary situs outside of California, but has established some situs in this state, the California assessment is based on the time actually in this state, at the airport where it spends the greatest amount of ground time, and all other time is allocable elsewhere.

The Assessor also relies on F.A.A. registration information in determining the taxable situs of the aircraft.

Notification of Assessment  

Each year you will receive an Aircraft Property Statement (R & T 5365).

The purpose of the Aircraft Property Statement is to provide the Assessor with information regarding the aircraft which will aid in the determination of fair market value for the current year. This form is a legal affidavit for which the information provided is declared to be true under penalty of perjury.

Aircraft Property Statements are mailed to identified aircraft owners prior to January 1 and are required to be returned by April 1. The form should be completed in its entirety, with as much detail as possible regarding the current condition of the aircraft. Instructions and other general information are contained on the back of the form. Failure to file an Aircraft Property Statement may compel the Assessor to estimate the market value of the aircraft and apply a penalty assessment (Revenue and Taxation Code Sections 501 and 5367).

Confidentiality

"All information requested by the assessor or furnished in the property statement shall be held secret by the assessor. The statement is not a public document and is not open to public inspection, except as provided in Section 408". (Revenue and Taxation Code Section 451)

Valuation

The Assessor is required to use retail market data in determining assessable values for aircraft. Aircraft market value guides are the main source for determining the assessable values. Information (current engine and airframe hours, status of paint and upholstery, etc.) provided on the Aircraft Property Statement will allow the Assessor to make appropriate value adjustments (if necessary) based on the actual condition of the aircraft. Additional information may be requested by the Assessor. AFTER ENROLLMENT, TAXPAYER REQUESTS FOR VALUE REVIEW MUST BE SUBMITTED IN WRITING WITH SUBSTANTIATING DOCUMENTATION.

If an aircraft was sold, destroyed, or permanently removed from Riverside County PRIOR to January 1, details should be provided by the assessee (owner) shown on the statement.

THE SALE, REMOVAL, OR DESTRUCTION OF AN AIRCRAFT AFTER LIEN DATE (January 1) DOES NOT RELIEVE THE OWNER OF TAX LIABILITY FOR THE COMING FISCAL YEAR.

Additional information regarding aircraft assessments may be obtained by contacting the Business Personal Property Division of the Assessor's office at (951) 955-6210.

Frequently Asked Questions

Q: How did you arrive at that value?

A: Values are based on aircraft market value guides and the filed Aircraft Property Statement.

Q: What if I sold the airplane?

A: Notify us in writing, and attach a copy of the bill of sale.

Q: What if I don't file the Aircraft Property Statement?

A: You need to file a statement to change the value. You may obtain a statement by contacting the Assessor. Attach any additional information pertaining to the aircraft's value.

Q: When and where is an aircraft assessed for property taxes?

A: State law requires that aircraft be assessed on January 1 of every year, at the site where they are regularly or routinely located. Aircraft regularly located in Riverside County are assessed here, regardless of where they are registered.