15-23-403. Determination of value — exception for new aircraft and supporting equipment — nonoperating property — notice. (1) The department of revenue shall determine the full and true valuation of all property of each airline operating in this state or used by each scheduled airline company in air commerce. Except as provided in subsection (2), this valuation may be ascertained by:

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Terms Used In Montana Code 15-23-403

  • Air commerce: means the transportation by aircraft of persons or property for hire in interstate, intrastate, or international transportation on regularly scheduled flights. See Montana Code 15-23-401
  • Aircraft: means a conveyance used or designed for navigation or flight through the air. See Montana Code 15-23-401
  • Newly acquired aircraft: means an aircraft acquired and placed into service within the calendar year immediately preceding the current calendar year in which the report that is required by 15-23-402 is filed regardless of whether the aircraft acquired is new or used. See Montana Code 15-23-401
  • Newly acquired equipment: means equipment acquired and placed into service within the calendar year immediately preceding the current calendar year in which the report that is required by 15-23-402 is filed regardless of whether the equipment acquired is new or used. See Montana Code 15-23-401
  • operated: means landings or takeoffs during interstate flight. See Montana Code 15-23-401
  • Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
  • Property: means real and personal property. See Montana Code 1-1-205
  • Scheduled airline company: means any person who undertakes directly or indirectly to engage in the business of scheduled air commerce. See Montana Code 15-23-401
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201

(a)determining the full and true valuation of all property owned and operated by each scheduled airline company; and

(b)allocating to the state of Montana from the total valuation a valuation that represents this state’s proper share of the valuation of the property, through the application of the ratios that are described in 15-23-402(8), (9), (10), and (11) against the total valuation.

(2)For a scheduled airline company operating within this state whose allocation of valuation within this state, as determined under subsection (1)(b), is 50% or more, the department shall determine the valuation of a newly acquired aircraft and newly acquired equipment to support that aircraft at 28% of full and true valuation for the first year after acquisition. For each succeeding year, the department shall increase the valuation by 8% over the previous year’s valuation until the valuation equals full and true valuation.

(3)Aircraft with a maximum takeoff weight of 19,000 pounds or less is considered nonoperating property and must be removed from the market value of a scheduled airline company.

(4)After making the assessment as provided in subsection (1) or (2), the department shall give written notice of the assessment to the person or persons to whom the assessment is made.