7.05.080 Personal Property Tax—Assessments—Aircraft.
(a) Purposes of taxation, aircraft that have been issued an N number by the Federal Aviation Administration (“FAA”) by January 1st of the tax year shall be totally exempted from ad valorem taxes and shall be taxed in accordance with the schedule at the end of this section.
(b) The owner of record of an aircraft that has been dismantled, destroyed or crashed and the FAA N number has been retained by the aircraft’s owner of record may submit to the assessor on an approved form “Aircraft Statement of Condition” that would allow for ad valorem taxation of that aircraft if approved. Aircraft for which such registration or licensing has lapsed or that has not passed the annual inspection required by the FAA shall not qualify on this basis alone for ad valorem taxation unless it has been dismantled, destroyed or crashed.
(c) Commercial aircraft operated under a regular schedule by a scheduled airline shall be exempt from the flat tax and shall be taxed on an ad valorem basis in accordance with the KPB landing schedule formula. The KPB landing schedule formula provides for the prorated calculation of scheduled aircraft by dividing the total hours per year into the total time aircraft operated by a scheduled carrier are in the KPB, and multiplying the result by the assessed value of each aircraft.
(d) Definitions.
(1) “Aircraft” means any engine powered contrivance invented, used, or designed to navigate, or fly in, the air and that is capable of being manned and is required by the FAA to be registered and certified in order to be manned.
(2) “Aircraft engine” means an engine used, or intended to be used, to propel an aircraft, except the tail rotor of a helicopter.
(3) “Commercial aircraft” means any aircraft transporting passengers and/or cargo for some payment or other consideration, including money or services rendered.
(4) “Crashed” means aircraft for which only parts remain that, due to their condition, can no longer be assembled to create any contrivable aircraft. This shall be evidenced by a FAA accident report and/or copy of an insurance claim that determines the aircraft to be a total loss.
(5) “Destroyed” means aircraft that have been damaged by age, weather, neglect and/or external influences outside the owner’s control, and only unusable parts remain that, due to their condition can no longer be assembled to create any contrivable aircraft. This shall be evidenced by photographs and a physical inspection by the KPB Assessing Department staff appraiser if deemed necessary by the borough assessor.
(6) “Dismantled” means aircraft that have been voluntarily disassembled and only parts remain that can no longer be assembled to create any contrivable aircraft. Evidence such as photographs and a physical inspection by the KPB Assessing Department staff appraiser shall be provided or allowed if deemed necessary by the borough assessor.
(7) “Scheduled airline” means any individual, partnership, corporation or association:
(a) Engaged in air transportation under regular schedules to, over, away from, or within the U.S.; and
(b) Holding a Foreign Air Carrier Permit or a Certificate of Public Convenience and Necessity, issued by the Department of Transportation pursuant to 14 CFR Parts 201 and 213.
(e) An aircraft owner may appeal the determination of the borough assessor under this section using the procedures set out in Kenai Peninsula Borough Code Sections 5.12.050 through 5.12.060.
|
Aircraft Flat Tax Schdule Based on |
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|---|---|---|---|---|---|
|
Fixed Wing |
Rotorcraft/Rotary Wing |
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|
Class |
Weight |
Annual Tax |
Class |
Weight |
Annual Tax |
|
1 |
Less than 2,000 lbs |
$0 |
1 |
Less than 1,500 lbs |
$0 |
|
2 |
2,000 to less than 4,000 lbs |
$0 |
2 |
1,500 to less than 3,500 lbs |
$0 |
|
3 |
4,000 to less than 6,000 lbs |
$0 |
3 |
3,500 lbs or more in weight |
$0 |
|
4 |
6,000 to less than 12,500 lbs |
$0 |
|||
|
5 |
12,500 lbs or more in weight |
$0 |
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(Ords. 2040-2004, 3382-2023)