HOUSE BILL NO. 479
INTRODUCED BY R. JOHNSON
AN ACT REVISING THE VALUATION FOR TAX PURPOSES OF NEWLY ACQUIRED AIRCRAFT AND SUPPORTING EQUIPMENT ACQUIRED BY CERTAIN SCHEDULED AIRLINES; PROVIDING DEFINITIONS OF "NEWLY ACQUIRED AIRCRAFT" AND "NEWLY ACQUIRED EQUIPMENT"; AMENDING SECTIONS 15-23-401 AND 15-23-403, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND RETROACTIVE APPLICABILITY DATES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-23-401, MCA, is amended to read:
"15-23-401. Definitions. The following words and phrases when As used in this part, unless the context clearly
indicates requires otherwise, shall have the meanings ascribed to them in this section the following definitions apply:
(1) "Air commerce" means the transportation by aircraft of persons or property for hire in interstate, intrastate, or international transportation on regularly scheduled flights.
(2) "Aircraft" means any contrivance now known or hereafter invented, a conveyance used, or designed for navigation
of or flight in through the air.
(3) "Equated plane hours" means hours spent by aircraft in flight or on the ground weighted according to the cargo capacity of each aircraft.
(4) "Flight property" means aircraft fully equipped, ready for flight used in air commerce.
(5) "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. Newly acquired aircraft includes an aircraft acquired and placed in service in calendar year 1997 provided that the aircraft was included in the report and the report was timely filed.
(6) "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. Newly acquired equipment includes equipment acquired and placed in service in calendar year 1997 provided that the equipment was included in the report and the report was timely filed.
(5)(7) "Operating" or "operated" means landings or takeoffs during interstate flight.
(6)(8) "Scheduled airline company" means any person who undertakes directly or indirectly to engage in the business of
scheduled air commerce."
Section 2. Section 15-23-403, MCA, is amended to read:
"15-23-403. Determination of value -- exception for new aircraft and supporting equipment -- notice. (1) The
department of revenue shall determine the full and true valuation of all property of all airlines each airline operating in this
state or used by every each scheduled airline company in air commerce. Except as provided in subsection (2), this valuation
may be ascertained by:
(a) determining the full and true valuation of all property owned and operated by every each scheduled airline company;
and
(b) allocating to the state of Montana from this the total valuation a valuation which that represents this state's proper
share of the valuation of the property, through the application of the ratios which that are indicated described in subsections
(8), (9), (10), and (11) of 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 new newly acquired
aircraft acquired and new newly acquired equipment acquired 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) After making the assessment as provided in subsection (1) or (2), the department shall give written notice thereof of
the assessment to the person or persons to whom the assessment is made."
Section 3. Effective date. [This act] is effective on passage and approval.
Section 4. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to newly acquired aircraft and equipment acquired after December 31, 1996, and to property tax years beginning after December 31, 1998.
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Latest Version of HB 479 (HB0479.ENR)
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