Airline Flight Property Tax Instructions - Minnesota Department Of Revenue (Page 3 of 4) in pdf

Completing Your Annual Report

Completing Form AF109A

•

Only planes used in Minnesota

leased which actually flew into or out

are listed on Form AF109C.

of Minnesota.

•

Fleet by Type Basis – each aircraft

•

If you choose to file as Fleet-by-Type

Form AF109A provides identifying infor-

type is considered separately.

Basis, complete one line on the Form

mation about the airline company. Enter

•

Complete 1 line on the

AF109B for each type of aircraft owned

the year at the top of the form and enter the

AF109B form is completed for

or leased, no matter where flown.

identifying information requested for the

each TYPE (e.g. 757s, DC-10s,

airline company.

Tonnage Factor

etc.) of aircraft used in Min-

The tonnage factor is the ratio of inbound

Special Notes:

nesota.

and outbound passengers, express and

•

Column P, if the company is “Privately

•

You must choose FALSE under

freight tonnage in Minnesota to the total

Held, ” the dropdown menu must be

All and TRUE under MN for

tonnage everywhere.

set to TRUE. If the company is not pri-

the dropdown menus on line

vately held, the dropdown menu must

2 columns A and B on Form

Passengers are expressed in total tonnage

be set to FALSE.

AF109B.

based on an average weight. Most airlines

•

Column X, Y, or Z – Please choose

use 180 pounds per passenger.

You must choose FALSE

•

System Basis, Adjusted System Basis

under All and TRUE under

Equated Plane Hours Factor

or Fleet by Type Basis for your aircraft.

MN for any planes entered on

The equated plane hours factor is the ratio

Choose “true” from the drop down

Form AF109C.

of the number of equated plane hours of

menu for the appropriate choice and

•

Only planes used in Minneso-

aircraft in flight in Minnesota to the total of

“false” for the other two choices. Please

ta are listed on Form AF109C.

such time in flight everywhere.

be aware of the following definitions

•

You must choose TRUE for

and rules for each of the following

If you elected to use the system basis or

situs basis – equipment in MN

Aircraft Systems.

adjusted system basis of value, the aircraft

(column AB) and FALSE for

•

System Basis – all aircraft. All air-

hours must be equated (see Definitions

system basis –all aircraft (col-

craft owned or leased by the airline

section).

umn AA). Only spare flight

is considered in the valuation.

equipment located in Min-

If you are required to equate plane hours,

•

Only 1 line on the AF109B

nesota is valued and assigned

choose a principal aircraft of which the

form is completed.

directly to Minnesota.

cargo and passenger capacity will be estab-

•

You must choose TRUE under

lished as 100 percent. Generally, the type of

•

Please indicate whether your airline is

Column “All”, and FALSE

aircraft with the largest cargo and passenger

primarily provides cargo or passenger

under Column “MN” for the

capacity is used as the principal aircraft. All

service by choosing the appropriate

dropdown menus on line 2

other aircraft will be assigned a percentage

true/false indicators in columns AC

columns A and B on Form

of less than 100 percent that is equal to its

and AD.

AF109B.

cargo and passenger capacity when com-

•

Indicate whether your airline met the

pared to the principal aircraft. See Example

•

You must choose TRUE under

statutory requirements during the past

1 on the next page.

Column “All” and FALSE

year to receive the 50% tax capacity

under Column “MN” for

The weighting process is necessary to ac-

reduction. If so, please choose TRUE

any planes entered on Form

count for differences in the capacities of

in the dropdown menu on the

AF109C.

passengers and freight of different aircraft.

AF109A

page

and

initial

the

•

All planes are listed on Form

appropriate space on the certification

If the airline has only one type of aircraft, or

AF109C.

page.

if you elect the fleet-by-type basis of value,

•

Adjusted System Basis – aircraft

divide the Minnesota plane hours by total

Completing Form AF109B

used in Minnesota. Only aircraft

system hours everywhere to determine the

used in Minnesota are considered.

equated hour ratio.

Based on the choices made on Form

•

Only 1 line on the AF109B

AF109A, enter the figures by line on Form

Revenue Ton Miles Factor

form is completed for all air-

AF109B. Several of the cells now have

The revenue ton miles factor is the ratio

craft used in Minnesota.

formulas which will automatically calculate

of revenue ton miles of passengers, mail,

numbers. Please do not enter anything into

•

You must choose FALSE under

express and freight flown by the airline

these cells.

Column “All” and TRUE

within Minnesota to the number flown

under “MN” for the dropdown

•

If you choose to file as System Basis,

everywhere. Revenue ton miles is the ton

menus on line 2 columns A

complete one line on Form AF109B for

miles sold in scheduled and charter service.

and B on Form AF109B.

all aircraft owned or leased, no matter

In the construction of this traffic measure,

•

You must choose TRUE under

where flown.

passenger miles converted to ton miles on

“All” and FALSE under “MN”

the basis of approximately 10 to 1. That is,

•

If you choose to file as Adjusted Sys-

for any planes entered on Form

ten passengers with allowable free baggage

tem Basis, complete only one line on

AF109C

are accepted as equaling one ton.

Form AF109B for all aircraft owned or

Continued

Airline Flight Property Tax Instructions - Minnesota Department Of Revenue Page 3

Related Articles

Related forms

Related Categories