Cal. Code Regs. Tit. 18, § 25101.3 - Air Transportation Companies - Property Factor for Allocation and Apportionment of Income

(a) The calculation of the "time" and "arrivals and departures" elements of the property factor formula for aircraft operated by members of a unitary group that are engaged in a unitary business of providing air transportation is made by grouping certificated aircraft by model, as defined in subsection (c) of this regulation. A separate allocation ratio is computed for each aircraft model that established a taxable situs within the state during the taxable year. Aircraft models that have not established a taxable situs within the state will not have property assigned to California for the year. Each allocation ratio is then applied to the total value of the carrier's aircraft of each model to which the allocation ratio applies, excluding those models that have not established a tax situs within the state.

(b) The allocation ratio is the amount computed pursuant to subdivisions (a), (b), (c), and (d) of Revenue and Taxation Code section 25101.3.

(c) A "model" of aircraft is defined as all aircraft that can be assigned to a group utilizing the following rules:

(1) All aircraft are grouped with other aircraft of the same manufacturer model, as determined by the manufacturer's designation system.

(2) If a taxpayer operates more than one series of an aircraft model, all series of that aircraft model are assigned to a single model group based on the aircraft manufacturer's designation system.

(3) If a taxpayer operates an aircraft that is part of an aircraft model series or version that is designated by the aircraft manufacturer for freight transportation, this aircraft is assigned to a model group separate from the group of aircraft of the same model that the aircraft manufacturer designates for passenger transportation.

(4) If a taxpayer operates an aircraft that can be configured either for freight transportation or passenger transportation, the aircraft is assigned to a group based on the aircraft model and the aircraft configuration.

(d) The following examples of aircraft model groupings, provided for illustrative purposes only and not intended to identify all series of aircraft models:

(1) Boeing 737 model grouping includes series 737-300, 737-500 and 737-700.

(2) Boeing 767 model grouping includes series 767-300 and 767-300ER.

(3) The Airbus S.A.S. aircraft designation system assigns aircraft models by families. The A310 family includes models A300 and A310. The A320 family includes models A318, A319, A320 and A321.

(4) Airbus A300F4-600R, a freight aircraft, is assigned to a group separate from Airbus A300-600, a passenger aircraft.

(5) Cessna 208 model grouping includes series Cessna 208A and Cessna 208B.

(6) Boeing MD-11F, a freight aircraft, is assigned to a separate group from Boeing MD-11, a passenger or freight aircraft, if the Boeing MD-11 is configured for passenger transportation. A Boeing MD-11F and Boeing MD-11 are assigned to the same model group if the Boeing MD-11 is configured for freight transportation.

Notes

Cal. Code Regs. Tit. 18, § 25101.3

1. New section filed 3-18-2010; operative 4-19-2010 (Register 2010, No. 12).

Note: Authority cited: Section 19503, Revenue and Taxation Code. Reference: Section 25101.3, Revenue and Taxation Code.

1. New section filed 3-18-2010; operative 4-19-2010 (Register 2010, No. 12).