LA County Aircraft Tax Notices: The Property Tax & Use Tax Connection

KEY TOPICS: ✔ LA COUNTY'S AIRCRAFT PROPERTY TAX PUSH • What the recent notices to aircraft owners are seeking • Why many assessments may apply to only a small percentage of an aircraft's value • What aircraft owners should know before simply paying the bill ✔ THE PROPERTY TAX → USE TAX CONNECTION • Why an aircraft becoming subject to California property tax during the first 12 months of ownership can create California use tax exposure • How paying a property tax assessment could potentially have much larger tax consequences • Why aircraft owners need to consider both taxes together ✔ THE CRITICAL FIRST 12 MONTHS OF OWNERSHIP • Why landings in Los Angeles County during the first year can matter • How the timing of an aircraft purchase and its California use can affect tax exposure • Why buyers should address these issues before taking possession—not after ✔ INTERSTATE COMMERCE: THE SIX-MONTH TEST • How the interstate commerce exemption may protect qualifying aircraft • Understanding the six-month test period • What happens when the test period has already expired • The importance of planning and documenting qualifying flight activity ✔ COMMON CARRIAGE: ANOTHER PATH TO PROTECTION • How the common carriage exemption may apply • The role of Part 135 operations and charter activity • Why waiting until after an aircraft is purchased may make qualifying more difficult • Understanding the timing requirements before the opportunity expires ✔ WHAT IF YOU'VE ALREADY RECEIVED A PROPERTY TAX BILL? • When an aircraft may have been incorrectly assessed • What happens when an aircraft was sold before the January 1 lien date • When it may make sense to challenge a property tax assessment • What owners should evaluate before simply paying the bill ✔ WHAT THIS COULD MEAN FOR AIRCRAFT BUYERS • Why we're advising buyers planning to make any landings in Los Angeles County during their first 12 months to plan ahead • How interstate commerce and common carriage planning can potentially protect against use tax exposure • Why tax planning should happen before the aircraft purchase and delivery ✔ COULD THIS SPREAD BEYOND LOS ANGELES COUNTY? • What this increased property tax activity could mean for aircraft owners throughout California • Whether other major California counties could take a similar approach • Why aircraft owners purchasing in California—or bringing aircraft into California—should be paying attention ✔ LIVE DISCUSSION WITH THE EXPERTS • Sales & use tax perspective from Aero & Marine Tax Professionals • Aviation legal perspective from Nathan Pietila • Live Q&A addressing aircraft owners' property tax and use tax questions