Arizona Laws 42-14254. Determination of value
A. On or before August 31 the department shall determine the full cash value of all flight property that is operated in this state in air commerce by each airline company. The full cash value is the value determined as of January 1 of the valuation year.
Terms Used In Arizona Laws 42-14254
- Air commerce: means the scheduled transportation by aircraft of persons or property for hire in interstate, intrastate or international transportation. See Arizona Laws 42-14251
- Aircraft: means any device that is used or designed for navigation or flight through the air. See Arizona Laws 42-14251
- Airline company: means any person who directly or indirectly undertakes to engage in the business of scheduled air commerce. See Arizona Laws 42-14251
- Department: means the department of revenue. See Arizona Laws 42-1001
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fleet type: means aircraft type and model. See Arizona Laws 42-14251
- Flight property: means all airline company aircraft of the types used in this state except aircraft that are permanently removed from operations. See Arizona Laws 42-14251
- operated: means regularly scheduled aircraft landings or takeoffs. See Arizona Laws 42-14251
- Original cost: means the capitalized acquisition cost to the original purchaser from the manufacturer of airframes and engines plus substantial modifications. See Arizona Laws 42-14251
- Property: includes both real and personal property. See Arizona Laws 1-215
- Small flight property: means all airline company aircraft of the types that are used in this state, not permanently removed from operations, with a maximum passenger capacity of less than fifty-six seats and a maximum payload capacity of less than eighteen thousand pounds. See Arizona Laws 42-14251
- State ground time: means the number of minutes that flight property is considered to be on the ground in this state during the preceding calendar year and is computed by multiplying the number of departures of flight property in this state during the preceding calendar year by forty-five. See Arizona Laws 42-14251
- System ground time: means the number of minutes that flight property is on the ground systemwide during the preceding calendar year and is computed by subtracting the number of revenue and nonrevenue airborne minutes of all flight property during the preceding calendar year from aircraft time. See Arizona Laws 42-14251
- Valuation: means the full cash value or limited property value that is determined for real or personal property, as applicable. See Arizona Laws 42-11001
- Valuation year: means :
(a) For real property and property valued by the department, the calendar year preceding the year in which the taxes are levied. See Arizona Laws 42-11001
B. The department shall:
1. Determine the valuation of flight property by fleet type.
2. Determine the valuation of each fleet type by the original cost less depreciation.
3. Compute depreciation using fifteen year straight line depreciation to salvage value. Salvage value is:
(a) Ten per cent of original cost of aircraft that are out of production.
(b) Twenty-five per cent of original cost of aircraft that are being manufactured as of January of the valuation year.
4. Allow additional obsolescence if supported by market evidence.
C. Small flight property that is operated in this state in air commerce shall be valued at thirty per cent of its original cost less depreciation and additional allowed obsolescence.
D. The department shall determine the valuation that is apportioned to this state of each fleet type as the proportion of the total valuation determined on the basis of the total of the following percentages:
1. Fifty per cent of the percentage that the total state ground time during the preceding calendar year is of the total system ground time during the preceding calendar year.
2. Fifty per cent of the percentage that the total mileage scheduled within this state of the fleet type on flights operated in this state during the preceding calendar year is of the total mileage scheduled within and without this state of the fleet type during the preceding calendar year.