““[Bill Gates] has been historically one of my best supporters…One of my favorite e-mails he ever sent me…I proposed this crazy project. And he sent back this two-line response: ‘This has got to be the craziest thing you’ve ever suggested. Please proceed.’” ”
California Law Taxes Fractionally Owned Aircraft
The first stone of taxation has been dropped into the lake of fractional ownership and the ripples are likely to spread. Last August, Senate Bill (SB) 87 was signed into law in California, creating a system for assessing property tax on fractionally owned aircraft for the first time in the U.S.
California already assesses local property tax on aircraft based in the state and used in operations conducted under Parts 91, 121 and 135 of the Federal Aviation Regulations. However, until
now the state did not impose property tax on fractional aircraft.
The National Business Aviation Association believes SB 87 may lead other states to adopt similar legislation that could result in assessment of personal property tax on fractional interests. For more details, contact the Aerlex Law Group at (877) 237-5398 or www.aerlex.com; or the NBAA at
(202) 783-9000 or www.nbaa.org.