Airline Flight Property Tax Instructions - Minnesota Department Of Revenue (Page 2 of 4) in pdf

Completing Your Annual Report

All airline companies must file

•

one-third of the percentage that the

Definitions

number of revenue ton miles of pas-

Form AF109 and supporting

sengers, mail, express and freight flown

(Minnesota Statutes,

schedules by July 1 of each year.

by the airline within Minnesota is of

section 270.071)

the total number of such miles flown

Air Commerce

everywhere by the airline.

Beginning with assessment year 2012,

Air commerce includes:

Form AF109 is now in the form of an Excel

The tax capacity for flight property is 70

spreadsheet flat file. For the most part, all

The transportation by aircraft of

percent of the value, and 40 percent of value

information requested is the same. It is

persons or property for hire in

for quiet aircraft, which includes turboprops

just in a different format. We have added

interstate, intrastate, or international

and aircraft defined as stage III by the Fed-

several rules and drop down menus to make

transportation on regularly sched-

eral Aeronautics Administration.

completing the form as easy as possible.

uled flights, OR on irregularly timed

Each tab on the spreadsheet represents a

50 Percent of Tax Capacity

flights by airline companies.

different form. Tabs are labeled with the

Percentage

It also includes but is not limited to

form numbers.

The tax capacity for flight property is 70 or

an intermittent or irregularly timed

40 percent of the Minnesota estimated mar-

We have also added a certification tab.

flight, a flight arranged at the conve-

ket value. However, you may be eligible to

Prior to submission, please detach this tab

nience of an airline and the person

reduce that rate by half, if the airline meets

from the spreadsheet, sign it and make it

contracting for the transportation, or

the following two qualifications:

into a PDF to be emailed, along with your

a charter flight.

Excel file.

A majority of the aircraft operated by

It includes any airline company mak-

the airline must be turboprops, and

If you prefer not to have the department

ing three or more flights in to or out

allocate the value of your flight property to

of Minnesota during a calendar year.

The airline must provide passenger

Minnesota based on the percentages set by

service in six or more months dur-

It does not include casual transportation

state law, you may petition for use of a

ing the year to three or more airports

for hire by aircraft commonly owned and

different allocation method.

anywhere that serve small or medium

used for private airflight purposes, if the

sized communities. A small or medium

You must attach to Form AF109 a copy of

person furnishing the transportation is

sized community is a home rule charter

your current year annual report to share-

not regularly engaged in transportation

or statutory city or town in Minnesota

holders, the airline’s balance sheet for the

for hire.

with a population of 100,000 or fewer

year and all supporting schedules.

Aircraft

that is not located in Anoka, Carver,

Aircraft is any contrivance (now known

Dakota, Hennepin, Ramsey, Scott or

Assessment Method

or hereafter invented) used or designed

Washington counties.

(Minnesota Statutes,

for navigation of or flight in the air.

(M.S. 270.074, subd. 3b)

section 270.074)

Airline Company

The department estimates the market value

Signature

Airline company means any person,

of all flight property operated or used by

An officer of the airline must sign the certi-

fiduciary or entity who is in the busi-

airline companies in air commerce in this

fication page attesting to its accuracy.

ness of air commerce, either directly or

state.

indirectly.

Petition to Use Another

Unless otherwise petitioned, the flight

Equated Plane Hours

property value apportioned to Minnesota is

Assessment Method

Equated plane hours means hours spent

the total of the following (see Definitions on

by aircraft in flight weighted according to

If you believe the assessment method

page 2):

the passenger and cargo capacity of each

described above is unjust to the airline, you

aircraft.

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one-third of the percentage that the

may petition the department to determine

airline company’s total tonnage of

the value or apportion to Minnesota by the

Flight Property

inbound and outbound passengers,

use of some other assessment method.

Flight property is all aircraft and flight

express and freight within Minnesota

equipment used in connection with the

To petition, select the method on Form

during the year is of the total of such

airline company, including spare flight

AF109A by which you want the department

tonnage everywhere for the same year,

equipment.

to value and apportion your aircraft and

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one-third of the percentage that, in

spare equipment for the assessment year.

Small or Medium-Sized Community

equated plane hours, the total time

You must complete Forms AF109B and

A small or medium sized community

of all the airline company’s aircraft in

AF109C consistent with the methods you

means a home rule charter or statu-

flight in Minnesota is of the total of

choose.

tory city or town in Minnesota with a

such time in flight everywhere, and

population of 100,000 or fewer that is

(M.S. 270.074, subd. 2)

not located in Anoka, Carver, Dakota,

Hennepin, Ramsey, Scott or Washington

Counties.

Airline Flight Property Tax Instructions - Minnesota Department Of Revenue Page 2

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