CHAPTER 12.3. INTRASTATE AIRCRAFT DEDUCTION
IC 6-1.1-12.3
Chapter 12.3. Intrastate Aircraft Deduction
IC 6-1.1-12.3-1
Application
Sec. 1. This chapter applies only to the following:
(1) Aircraft that:
(A) have a seating capacity of not less than nine (9)
passengers;
(B) are used in the air transportation of passengers or
passengers and property; and
(C) are owned or operated by a person that is:
(i) an air carrier certified under Federal Aviation
Regulation Part 121; or
(ii) a scheduled air taxi operator certified under Federal
Aviation Regulation Part 135.
(2) Aircraft that:
(A) are used to transport only property, regardless of
whether the aircraft is operated as a common carrier for
compensation; and
(B) are owned or operated by a person that is:
(i) an air carrier certified under Federal Aviation
Regulation Part 121; or
(ii) a scheduled air taxi operator certified under Federal
Aviation Regulation Part 135.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-2
"Abatement property"
Sec. 2. As used in this chapter "abatement property" refers to
aircraft described in section 1 of this chapter.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-3
"Aircraft"
Sec. 3. As used in this chapter, "aircraft" has the meaning set forth
in 49 U.S.C. 40102.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-4
"Air transportation"
Sec. 4. As used in this chapter, "air transportation" means
transportation of passengers or property by aircraft as a common
carrier for compensation.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-5
"Business entity"
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).
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-6
"Intrastate airline service"
Sec. 6. As used in this chapter, "intrastate airline service" means
service provided in Indiana by an aircraft that is used during a
service period in which ground time is determined for purposes of
calculating ad valorem property taxes to fly:
(1) either directly:
(A) between:
(i) a qualifying medium hub airport; and
(ii) at least two (2) qualifying underserved airports; or
(B) between:
(i) two (2) qualifying commercial service airports, one (1)
of which is not a qualifying underserved airport; or
(ii) a qualifying medium hub airport and a qualifying
commercial service airport other than a qualifying
underserved airport; and
(2) a route described in subdivision (1)(A) or (1)(B) at least five
(5) times per week in each week during the service period
immediately preceding an assessment date.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-7
"Qualifying commercial service airport"
Sec. 7. As used in this chapter, "qualifying commercial service
airport" means a commercial service airport (as defined in 14 CFR
158.3, as effective January 1, 2003) that is located in Indiana.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-8
"Qualifying medium hub airport"
Sec. 8. As used in this chapter, "qualifying medium hub airport"
means a medium hub airport (as defined in 14 CFR 398.2, as
effective January 1, 2003) that is located in Indiana.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-9
"Qualifying underserved airport"
Sec. 9. As used in this chapter, "qualifying underserved airport"
means a qualifying commercial service airport that serves a
municipality that is not directly connected by an interstate highway
with a municipality served by a qualifying medium hub airport.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-10
"Service period"
Sec. 10. As used in this chapter, "service period" means a period
beginning March 1 in a year immediately preceding an assessment
date and ending on February 28 in the year containing an assessment
date.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-11
"Taxpayer"
Sec. 11. As used in this chapter, "taxpayer" means a business
entity 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.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-12
Deduction; service to underserved airports
Sec. 12. A taxpayer is entitled to a deduction from the assessed
value of abatement property that is used to provide intrastate airline
service between locations described in section 6(1)(A) of this
chapter.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-13
Deduction; service not involving underserved airports; limitations
Sec. 13. A taxpayer is entitled to a deduction from the assessed
value of abatement property used to provide intrastate airline service
between at least two (2) locations described in section 6(1)(B) of this
chapter only if the same or another taxpayer provides intrastate
airline service between locations described in section 6(1)(A) of this
chapter during the same service period.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-14
Amount of deduction; ground time
Sec. 14. The deduction applies to ad valorem property taxes
calculated using aircraft ground times. The amount of a deduction
available under section 12 or 13 of this chapter is equal to the
product of:
(1) one hundred percent (100%) of the assessed value of the
abatement property; multiplied by
(2) with respect to the ground time determined for purposes of
calculating ad valorem property taxes for the aircraft, the
quotient of:
(A) the ground time that immediately precedes a flight to an
Indiana destination; divided by
(B) the total ground time.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-15
Limitations; weekly service requirements; service to underserved
airports
Sec. 15. (a) Any part of an ad valorem property tax assessment
attributable to ground times during a week:
(1) in which the requirements of section 6(2) of this chapter are
not met; and
(2) for which noncompliance is not waived under section 16 of
this chapter;
may not be deducted under section 12 or 13 of this chapter.
(b) Any part of an ad valorem property tax assessment attributable
to ground times during a week in which intrastate air service
described in section 6(1)(A) of this chapter is not also available may
not be deducted under section 13 of this chapter.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-16
Weekly service requirements; waiver
Sec. 16. Based on:
(1) extraordinary circumstances that prevent a taxpayer from
using abatement property to meet the requirements under
section 6(2) of this chapter; or
(2) the start-up of service after the beginning of a service
period;
the airport operator of the airports (other than a qualifying medium
hub airport) that were directly affected by reduced service may waive
compliance with section 6(2) of this chapter during all or part of the
period in which the circumstances preventing regular service
occurred. A taxpayer shall be treated as in compliance with section
6(2) of this chapter to the extent that compliance with the provision
is waived under this section.
As added by P.L.224-2003, SEC.279.
IC 6-1.1-12.3-17
Claiming deduction
Sec. 17. 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 IC 6-1.1-3 or IC 6-1.1-8 (or an amended return filed
within the time allowed under this article) for the abatement property
to which the deduction applies.
As added by P.L.224-2003, SEC.279.