Citations Affected: IC 6-1.1-12.2.
Synopsis: Property tax exemption for aircraft. Provides a deduction for
certain aircraft and related parts and equipment owned by a business
entity with an Indiana corporate headquarters.
Effective: January 1, 2003 (retroactive).
January 23, 2003, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2003 (RETROACTIVE)]:
Chapter 12.2. Deduction for Aircraft and Related Parts and Equipment
Sec. 1. This chapter applies only to the following:
(1) Aircraft with a seating capacity of not more than ninety (90) passengers used in the air transportation of passengers or passengers and property.
(2) Aircraft used to transport only property, regardless of whether the aircraft is operated as a common carrier for compensation.
(3) Spare parts for aircraft described in subdivision (1) or (2), or both, regardless of whether the spare parts are capable of being used in other aircraft.
(4) Equipment directly or indirectly used in repairing, maintaining, or extending the useful life of aircraft described
in subdivision (1) or (2), or both, regardless of whether the
equipment is or is capable of being used for other aircraft.
Sec. 2. As used in this chapter "abatement property" refers to tangible personal property described in section 1 of this chapter.
Sec. 3. As used in this chapter, "aircraft" has the meaning set forth in 49 U.S.C. 40102.
Sec. 4. As used in this chapter, "air transportation" means transportation of passengers or property by aircraft as a common carrier for compensation.
Sec. 5. As used in this chapter, "business entity" refers to a corporation (as defined in IC 6-3-1-10 ) or partnership (as defined in IC 6-3-1-19 ).
Sec. 6. As used in this chapter, "equipment" refers to equipment directly or indirectly used in the maintenance, repair, or extension of the useful life of an aircraft.
Sec. 7. As used in this chapter, "Indiana corporate headquarters" means a physical presence in Indiana of a domestic business entity that results in Indiana being the regular or principal place of business of its chief executive, operating, and financial officers.
Sec. 8. As used in this chapter, "spare parts" has the meaning set forth in 49 U.S.C. 40102.
Sec. 9. As used in this chapter, "subsidiary" means a business entity in which another business entity with an Indiana corporate headquarters has at least an eighty percent (80%) ownership interest.
Sec. 10. As used in this chapter, "taxpayer" means a business entity that:
(1) has an Indiana corporate headquarters; or
(2) is a subsidiary of a business entity with an Indiana corporate headquarters;
and that is liable under IC 6-1.1-2-4 , as applied under IC 6-1.1-3 or IC 6-1.1-8 , for ad valorem property taxes on abatement property.
Sec. 11. A taxpayer is entitled to a deduction from the assessed value of abatement property in each year in which the abatement property is subject to taxation for ad valorem property taxes.
Sec. 12. The amount of the deduction is equal to one hundred percent (100%) of the assessed value of the abatement property.
Sec. 13. The deduction includes ad valorem property taxes calculated using aircraft ground times.
Sec. 14. To qualify for the deduction, the taxpayer must claim the deduction, in the manner prescribed by the department of local
government finance, on the taxpayer's personal property tax
return filed under
(or an amended return
filed within the time allowed under this article) for the abated
property to which the deduction applies.
SECTION 2. [EFFECTIVE JANUARY 1, 2003 (RETROACTIVE)] IC 6-1.1-12.2 , as added by this act, applies only to assessment dates after December 31, 2001, and ad valorem property taxes due and payable after December 31, 2002.
SECTION 3. An emergency is declared for this act.