California Legislature—2015–16 Regular Session

Assembly BillNo. 1157


Introduced by Assembly Member Nazarian

February 27, 2015


An act to amend Sections 401.17, 441, and 1153.5 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 1157, as introduced, Nazarian. Property taxation: certificated aircraft assessment.

Existing property tax law requires the personal property of an air carrier to be taxed at its fair market value, and the California Constitution requires property subject to ad valorem property taxation to be assessed in the county in which it is situated. Existing law, for the 2005-06 fiscal year to the 2015-16 fiscal year, inclusive, specifies a formula to determine the fair market value of certificated aircraft of a commercial air carrier, and rebuttably presumes that the amount determined pursuant to this formula is the fair market value of the certificated aircraft. Existing law further requires, until December 31, 2015, the Aircraft Advisory Subcommittee of the California Assessors’ Association to designate, after soliciting input from commercial air carriers operating in the state, a lead county assessor’s office for each commercial air carrier operating certificated aircraft in this state in an assessment year, and requires the lead county assessor to calculate the value of the air carrier’s personal property and to transmit these calculations to other county assessors, but specifies that each county assessor is responsible for assessing and enrolling the taxable value of the property in his or her county, as provided. Existing law also requires, until December 31, 2015, the lead county assessor’s office to lead a team to audit the books and records of commercial air carriers and authorizes these air carriers to file a property statement solely with the lead county assessor’s office, as provided.

This bill would extend the 2015-16 fiscal year termination date to the 2021-22 fiscal year and the December 31, 2015, inoperative or repeal date to December 31, 2021, for the above-described provisions relating to the determination of the fair market value and taxation of certificated aircraft.

By extending the application of the aforementioned valuation process for certificated aircraft beyond the 2015-16 fiscal year, thereby imposing new duties upon a lead county assessor’s office, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 401.17 of the Revenue and Taxation
2Code
is amended to read:

3

401.17.  

(a) For the 2005-06 fiscal year to thebegin delete 2015-16end delete
4begin insert 2021-22end insert fiscal year, inclusive, it shall be rebuttably presumed that
5the preallocated fair market value of each make, model, and series
6of mainline jets, production freighters, and regional aircraft that
7has attained situs within this state is the lesser of the sum total of
8the amounts determined under paragraph (1) or the sum total of
9the amounts determined under paragraph (2). The value of an
10individual aircraft assessed to the original owner of that aircraft
11shall not exceed its original cost from the manufacturer. The
12preallocated fair market value of an aircraft may be rebutted by
13evidence including, but not limited to, appraisals, invoices, and
14expert testimony.

P3    1(1) (A) The original cost for the aircraft, which shall be
2determined as follows and adjusted, as applicable, under
3subparagraphs (B), (C), and (D):

4(i) For owned and leased aircraft, the taxpayer’s or lessor’s
5acquisition cost for that individual aircraft reported in accordance
6with generally accepted accounting principles, and to the extent
7not included in the acquisition cost, transportation costs and
8capitalized interest and the cost of improvements made before a
9transaction described in clause (ii). If the original cost for leased
10aircraft cannot be determined from information reasonably
11available to the taxpayer, original cost may be determined by
12reference to the “average new prices” column of the Airliner Price
13Guide for that model, series, and year of manufacture of aircraft.
14 If information is not available in the “average new prices” column
15for that model, series, and year, the original cost may be determined
16using the best indicator of original cost plus all conversion costs
17and improvement costs incurred for that aircraft.

18(ii) For sale/leaseback or assignment of purchase rights
19transaction aircraft, the average of the taxpayer’s cost established
20pursuant to clause (i) and the cost established in a sale/leaseback
21or assignment of purchase rights transaction for individual aircraft
22that transfers the benefits and burdens of ownership to the lessor
23for United States federal income tax purposes. In no event shall
24the original cost for sale/leaseback aircraft be less than the
25taxpayer’s acquisition cost.

26(iii) In the event of a merger, bankruptcy, or change in
27accounting methods by the reporting airline, there shall be a
28rebuttable presumption that the cost of the individual aircraft and
29the acquisition date reported by the acquired company, if available,
30or the cost reported prior to the change in accounting method, are
31the original cost and the applicable acquisition date.

32(B) (i) For mainline jets and production freighters, the original
33cost described in subparagraph (A), plus the cost of any
34improvements not otherwise included in the original cost, shall be
35adjusted from the date of the acquisition of the aircraft to the lien
36date using the monthly United States Department of Labor
37Producer Price Index for aircraft and a 20-year straight-line
38percent-good table starting from the delivery date of the aircraft
39to the current owner or, in the case of a sale/leaseback or
40assignment of purchase rights transaction, as described in this
P4    1section, the current operator with a minimum combined factor of
225 percent.

3(ii) For regional aircraft, the original cost described in
4subparagraph (A), plus the cost of any improvements not otherwise
5included in the original cost, shall be adjusted from the date of the
6acquisition of the aircraft to the lien date using the monthly United
7States Department of Labor Producer Price Index for aircraft and
8a 16-year straight-line percent-good table starting from the delivery
9date of the aircraft to the current owner or, in the case of a
10sale/leaseback or assignment of purchase rights transaction, as
11described in this section, the current operator with a minimum
12combined factor of 25 percent.

13(iii) If original cost is determined by reference to the Airliner
14Price Guide “average new prices” column, the adjustments required
15by this paragraph shall be made by setting the acquisition date of
16the aircraft to be the date of the aircraft’s manufacture.

17(C) (i) For mainline jets and regional aircraft, the assessor shall
18analyze the adjusted original cost derived pursuant to subparagraph
19(B), for application of an economic obsolescence allowance which
20shall be determined as follows:

21(I) For the applicable year, the assessor shall calculate the
22average annual net revenue per available seat mile, the net load
23factor, and the yield utilizing the Airline Quarterly Financial
24Review published by the United States Department of
25Transportation, and referring to the section descriptive of the
26passenger airline industry, entitled “System Operations, System
27Pax. Majors” for the calendar year ending December 31
28immediately preceding the applicable assessment date.

29(II) For a 10-year benchmark, the assessor shall calculate as of
30December 31 for each of the 10 calendar years preceding the
31applicable year, the average annual net revenue per available seat
32mile, the net load factor, and the yield utilizing the Airline
33Quarterly Financial Review published by the United States
34Department of Transportation, and referring to the section
35descriptive of the passenger airline industry, entitled “System
36Operations, System Pax. Majors” for the calendar year ending
37December 31 immediately preceding the applicable assessment
38date.

39(ii) (I) The assessor shall compare each factor calculated under
40subclause (I) of clause (i) with the corresponding factor calculated
P5    1under subclause (II) of clause (i) to derive the percentage that each
2of the factors calculated under subclause (I) of clause (i) deviated
3from the 10-year benchmark calculated under subclause (II) of
4clause (i). The assessor shall then calculate a weighted average of
5the indicated percentage adjustments, weighted as follows:

6(aa) Net revenue per available seat mile shall be weighted 35
7percent.

8(ab) Net load factor shall be weighted 35 percent.

9(ac) Yield shall be weighted 30 percent.

10(II) The assessor shall reduce the adjusted original costs derived
11under subparagraph (B) by the percentage adjustment calculated
12in subclause (I), but only if the final economic obsolescence
13determined under that subclause exceeds 10 percent, otherwise no
14economic obsolescence allowance shall be provided.

15(D) (i) For production freighters, the assessor shall analyze the
16adjusted original cost derived under subparagraph (B), for
17application of an economic obsolescence allowance, as follows:

18(I) For the applicable year, the assessor shall calculate the
19industry average of net revenue per available ton mile and the ton
20load factor based upon the Airline Quarterly Financial Review
21published by the United States Department of Transportation, and
22referring to the section descriptive of the cargo airline industry,
23entitled “System Operations, System Cargo Majors” for the
24calendar year ending December 31 preceding the relevant
25assessment date.

26(II) For a 10-year benchmark, the assessor shall calculate as of
27December 31 for each of the 10 calendar years preceding the
28applicable year, the net revenue per available ton mile and the ton
29load factor utilizing the Airline Quarterly Financial Review
30published by the United States Department of Transportation and
31referring to the section descriptive of the cargo airline industry,
32entitled “System Operations, System Cargo Majors” as of
33December 31 for each of the 10 calendar years preceding the
34calendar year utilized for the subject year, for the calendar year
35ending December 31 immediately preceding the applicable
36assessment date.

37(ii) (I) The assessor shall compare each factor calculated under
38subclause (I) of clause (i) with the corresponding factor calculated
39under subclause (II) of clause (i) to derive the percentage that each
40of the factors calculated under subclause (I) of clause (i) deviated
P6    1from the 10-year benchmark calculated under subclause (II) of
2clause (i). The assessor shall then calculate a weighted average of
3the indicated percentage adjustments so that the net revenue per
4available ton mile is weighted 50 percent and the ton load factor
5is weighted 50 percent.

6(II) The assessor shall reduce the adjusted original costs derived
7under subparagraph (B) by the percentage adjustment calculated
8in subclause (I), but only if the final economic obsolescence
9determined under that subclause exceeds 10 percent, otherwise no
10economic obsolescence allowance shall be provided.

11(2) (A) Except as otherwise provided in subparagraph (B), for
12each individual mainline jet, production freighter, or regional
13aircraft, the assessor shall identify the value referenced in the “Used
14Price of Avg. Acft. Wholesale” column of the Winter edition of
15the Airliner Price Guide by make, model, series, and year of
16manufacture, and deduct 10 percent from that value for a fleet
17discount.

18(B) For each individual mainline jet, production freighter, or
19regional aircraft that is less than two years old and for which the
20Airliner Price Guide does not list used wholesale values, the
21original cost determined under paragraph (1) of subparagraph (A)
22shall be decreased by the lesser of 5 percent or one-half of the
23 percentage decrease between original cost and 90 percent of the
24value listed in the “Used Price of Avg. Acft. Wholesale” column
25of the Winter edition of the Airliner Price Guide for a two-year-old
26aircraft of that same make, model, and series.

27(b) For the 2005-06 fiscal year to thebegin delete 2015-16end deletebegin insert 2021-22end insert fiscal
28year, inclusive, it shall be rebuttably presumed that the preallocated
29fair market value for each make, model, and series of converted
30freighters that has attained situs within this state is the amount that
31is determined as follows:

32(1) (A) The assessor shall begin his or her appraisal of a
33converted freighter as of the relevant lien date by identifying the
34aircraft’s original cost as a passenger aircraft prior to conversion.
35The aircraft’s original cost as a converted freighter shall be the
36lesser of:

37(i) Its trended original cost as a passenger aircraft prior to
38conversion, less a downward adjustment of 10 percent to reflect
39tear-outs.

P7    1(ii) Its value described in the Winter edition of the Airliner Price
2Guide in the “Used Price of Avg. Acft. Wholesale” column in
3passenger configuration, less a downward adjustment of 10 percent
4to reflect tear-outs.

5(B) The amount determined under subparagraph (A) shall be
6adjusted according to the following:

7(i) If, on the relevant lien date, the frame of the aircraft is 15
8years old or more, 50 percent of the cost to convert the aircraft to
9a freighter shall be added to the value determined under
10subparagraph (A).

11(ii) If, on the relevant lien date, the frame of the aircraft is less
12than 15 years old, 75 percent of the cost to convert the aircraft to
13a freighter shall be added to the value determined under
14subparagraph (A).

15(iii) In addition, all other improvements, including capitalized
16interest, to the aircraft that are not otherwise included in the
17aircraft’s original and conversion costs shall be added at full value.

18(2) The amount determined under paragraph (1) shall be adjusted
19from the date of the conversion of the aircraft to the lien date using
20the monthly United States Department of Labor Producer Price
21Index for aircraft and a 16-year straight-line percent-good table,
22however, the percent-good applied to the aircraft shall in no event
23be less than 15 percent.

24(3) If the Airliner Price Guide “Used Price of Avg. Acft.
25Wholesale” is utilized under paragraph (1), only the improvements
26and adjusted conversion costs pertaining to the converted freighter
27shall be adjusted from the date of the conversion of the aircraft to
28the relevant lien date using the monthly United States Department
29of Labor Producer Price Index for aircraft and a 16-year
30straight-line percent-good table. In no event, however, shall the
31percent-good applied to the improvements and adjusted conversion
32costs be less than 15 percent.

33(4) (A) Except as otherwise provided in subparagraph (B), the
34assessor shall reduce the adjusted original cost, plus improvements,
35and adjusted conversion costs, derived under paragraphs (1) to (3),
36inclusive, by the obsolescence percentage adjustment calculated
37for production freighters under subparagraph (D) of paragraph (1)
38 of subdivision (a).

39(B) If the Airliner Price Guide “Used Price of Avg. Acft.
40Wholesale” is utilized under paragraph (1), only the improvements
P8    1and adjusted conversion costs pertaining to the converted freighter
2shall be reduced by the obsolescence percentage adjustment
3described in subparagraph (A).

4(c) For purposes of this section, if the Airliner Price Guide
5ceases to be published or the format significantly changes, a guide
6or adjustment agreed to by commercial air carriers and the counties
7in which certificated aircraft have situs shall be substituted. If these
8parties do not agree on a guide or adjustment, the State Board of
9Equalization shall determine the guide or adjustment.

10(d) The taxpayer shall, to the extent that information is
11reasonably available to the taxpayer, furnish the county assessor
12with an annual property statement that includes the aircraft original
13costs as defined in subparagraph (A) of paragraph (1) of
14subdivision (a). If an air carrier that has this information reasonably
15available to it fails to report original cost and improvements, as
16required by Sections 441 and 442, an assessor may in that case
17make an appropriate assessment pursuant to Section 501.

18(e) For purposes of this section, all of the following apply:

19(1) “Converted freighter” means a certificated aircraft, as defined
20in Section 1150, that, following its original manufacture, was used
21for passenger transportation, but was later converted to be used
22primarily for cargo transportation purposes.

23(2) “Mainline jet” means a certificated aircraft, as defined in
24Section 1150, that is either of the following:

25(A) Manufactured by Boeing, Airbus, or McDonnell Douglas.

26(B) Capable of being configured with approximately 100 seats
27or more.

28(3) “Production Freighter” means a certificated aircraft, as
29defined in Section 1150, that immediately following its
30manufacture is deployed primarily for cargo transportation
31purposes.

32(4) “Regional aircraft” means a certificated aircraft, as defined
33in Section 1150, that is either of the following:

34(A) Manufactured by ATR (Avions De Transport Regional),
35Beech, British Aerospace Jetstream, Canadair Regional Jet, Cessna,
36DeHaviland, Embraer, Fairchild, or Saab.

37(B) Generally configured with fewer than 100 seats.

38(5) “Improvements” means the cost of any modifications or
39capital additions that materially add to the value of or substantially
40prolong the useful life of the aircraft, or make it adaptable to a
P9    1different use. “Improvements” include modification costs incurred
2during a heavy maintenance visit to the extent that they materially
3add to the value of or substantially prolong the useful life of the
4aircraft. “Improvements” do not include repair and maintenance
5costs incurred for the purpose of keeping the aircraft in an
6ordinarily efficient operating condition.

7(6) “Net revenue per available seat mile” means operating
8revenue per available seat mile less cost per available seat mile as
9determined by the United States Department of Transportation.

10(7) “Net load factor” means actual passenger load factor less
11 break-even passenger load factor, as determined by the United
12States Department of Transportation.

13(8) “Net revenue per available ton mile” means operating
14revenue per ton mile less cost per available ton mile as determined
15by the United States Department of Transportation.

16(9) “Yield” means average revenue per revenue passenger mile
17as determined by the United States Department of Transportation.

18(10) “Ton Load Factor” means that percentage of effective use
19of cargo capacity as determined by the United States Department
20of Transportation.

21(f) The amendments made by the act adding this subdivision
22shall apply with respect to lien dates occurring on and after January
231, 2011.

24

SEC. 2.  

Section 441 of the Revenue and Taxation Code is
25amended to read:

26

441.  

(a) Each person owning taxable personal property, other
27than a manufactured home subject to Part 13 (commencing with
28Section 5800), having an aggregate cost of one hundred thousand
29dollars ($100,000) or more for any assessment year shall file a
30signed property statement with the assessor. Every person owning
31personal property that does not require the filing of a property
32statement or real property shall, upon request of the assessor, file
33a signed property statement. Failure of the assessor to request or
34secure the property statement does not render any assessment
35invalid.

36(b) The property statement shall be declared to be true under
37the penalty of perjury and filed annually with the assessor between
38the lien date and 5 p.m. on April 1. The penalty provided by Section
39463 applies for property statements not filed by May 7. If May 7
40falls on a Saturday, Sunday, or legal holiday, a property statement
P10   1that is mailed and postmarked on the next business day shall be
2deemed to have been filed between the lien date and 5 p.m. on
3May 7. If, on the dates specified in this subdivision, the county’s
4offices are closed for the entire day, that day is considered a legal
5holiday for purposes of this section.

6(c) The property statement may be filed with the assessor
7through the United States mail, properly addressed with postage
8prepaid. For purposes of determining the date upon which the
9property statement is deemed filed with the assessor, the date of
10postmark as affixed by the United States Postal Service, or the
11date certified by a bona fide private courier service on the envelope
12containing the application, shall control. This subdivision shall be
13applicable to every taxing agency, including, but not limited to, a
14chartered city and county, or chartered city.

15(d) (1) At any time, as required by the assessor for assessment
16purposes, every person shall make available for examination
17information or records regarding his or her property or any other
18personal property located on premises he or she owns or controls.
19In this connection details of property acquisition transactions,
20construction and development costs, rental income, and other data
21relevant to the determination of an estimate of value are to be
22considered as information essential to the proper discharge of the
23assessor’s duties.

24(2) (A) This subdivision shall also apply to an owner-builder
25or an owner-developer of new construction that is sold to a third
26party, is constructed on behalf of a third party, or is constructed
27for the purpose of selling that property to a third party.

28(B) The owner-builder or owner-developer of new construction
29described in subparagraph (A), shall, within 45 days of receipt of
30a written request by the assessor for information or records, provide
31the assessor with all information and records regarding that
32property. The information and records provided to the assessor
33shall include the total consideration provided either by the
34purchaser or on behalf of the purchaser that was paid or provided
35either, as part of or outside of the purchase agreement, including,
36but not limited to, consideration paid or provided for the purchase
37or acquisition of upgrades, additions, or for any other additional
38or supplemental work performed or arranged for by the
39owner-builder or owner-developer on behalf of the purchaser.

P11   1(e) In the case of a corporate owner of property, the property
2statement shall be signed either by an officer of the corporation or
3an employee or agent who has been designated in writing by the
4board of directors to sign the statements on behalf of the
5corporation.

6(f) In the case of property owned by a bank or other financial
7institution and leased to an entity other than a bank or other
8financial institution, the property statement shall be submitted by
9the owner bank or other financial institution.

10(g)  The assessor may refuse to accept any property statement
11he or she determines to be in error.

12(h) If a taxpayer fails to provide information to the assessor
13pursuant to subdivision (d) and introduces any requested materials
14or information at any assessment appeals board hearing, the
15assessor may request and shall be granted a continuance for a
16reasonable period of time. The continuance shall extend the
17two-year period specified in subdivision (c) of Section 1604 for a
18period of time equal to the period of the continuance.

19(i) Notwithstanding any other provision of law, every person
20required to file a property statement pursuant to this section shall
21be permitted to amend that property statement until May 31 of the
22year in which the property statement is due, for errors and
23omissions not the result of willful intent to erroneously report. The
24penalty authorized by Section 463 does not apply to an amended
25statement received prior to May 31, provided the original statement
26is not subject to penalty pursuant to subdivision (b). The amended
27property statement shall otherwise conform to the requirements
28of a property statement as provided in this article.

29(j) This subdivision shall apply to the oil, gas, and mineral
30extraction industry only. Any information that is necessary to file
31a true, correct, and complete statement shall be made available by
32the assessor, upon request, to the taxpayer by mail or at the office
33of the assessor by February 28. For each business day beyond
34February 28 that the information is unavailable, the filing deadline
35in subdivision (b) shall be extended in that county by one business
36day, for those statements affected by the delay. In no case shall
37the filing deadline be extended beyond June 1 or the first business
38day thereafter.

39(k) The assessor may accept the filing of a property statement
40by the use of electronic media. In lieu of the signature required by
P12   1subdivision (a) and the declaration under penalty of perjury
2required by subdivision (b), property statements filed using
3electronic media shall be authenticated pursuant to methods
4specified by the assessor and approved by the board. Electronic
5media includes, but is not limited to, computer modem, magnetic
6media, optical disk, and facsimile machine.

7(l) (1) After receiving the notice required by Section 1162, the
8manager in control of a fleet of fractionally owned aircraft shall
9file with the lead county assessor’s office one signed property
10statement for all of its aircraft that have acquired situs in the state,
11as described in Section 1161.

12(2) Flight data required to compute fractionally owned aircraft
13allocation under Section 1161 shall be segregated by airport.

14(m) (1) After receiving the notice required by paragraph (5) of
15subdivision (b) of Section 1153.5, a commercial air carrier whose
16certificated aircraft is subject to Article 6 (commencing with
17Section 1150) of Chapter 5 shall file with the lead county assessor’s
18office designated under Section 1153.5 one signed property
19statement for its personal property at all airport locations and
20fixtures at all airport locations.

21(2) Each commercial air carrier may file one schedule for all of
22its certificated aircraft that have acquired situs in this state under
23Section 1151.

24(3) Flight data required to compute certificated aircraft allocation
25under Section 1152 and subdivision (g) of Section 202 of Title 18
26of the California Code of Regulations shall be segregated by airport
27location.

28(4) Beginning with the 2006 assessment year, a commercial air
29carrier may file a statement described in this subdivision
30electronically by means of the California Assessor’s Standard Data
31Record (SDR) network. If the SDR is not equipped to accept
32electronic filings for the 2006 assessment year, an air carrier may
33file a printed version of its property statement for that year with
34its lead county assessor’s office.

35(5) This subdivision shall remainbegin delete in effectend deletebegin insert operativeend insert only until
36December 31,begin delete 2015, and as of that date is repealedend deletebegin insert 2021end insert.

37

SEC. 3.  

Section 1153.5 of the Revenue and Taxation Code is
38amended to read:

39

1153.5.  

(a) The Aircraft Advisory Subcommittee of the
40California Assessors’ Association shall, after soliciting input from
P13   1commercial air carriers operating in the state, do both of the
2following:

3(1) On or before March 1, 2006, and on or before each March
41 thereafter, designate a lead county assessor’s office for each
5commercial air carrier operating certificated aircraft in this state
6in that assessment year.

7(2) Every third year thereafter, redesignate a lead county
8assessor’s office for each of these air carriers, unless an air carrier
9and its existing lead county assessor’s office concur to waive this
10redesignation.

11(b) The lead county assessor’s office described in subdivision
12(a) shall do all of the following:

13(1) Calculate, pursuant to Section 401.17, an unallocated value
14of the certificated aircraft of each commercial air carrier to which
15he or she is designated.

16(2) Electronically transmit to the assessor of each county in
17which the property described in paragraph (1) has situs for the
18assessment year the values determined by the lead county
19assessor’s office under paragraph (1).

20(3) Receive the property statement, as described in subdivision
21(l) of Section 441, of each commercial air carrier to which he or
22she is designated.

23(4) Lead the audit team described in subdivision (d) when that
24team is conducting an audit of a commercial air carrier to which
25he or she is designated.

26(5) Notify, in writing, each commercial air carrier for which he
27or she has been designated of this designation on or before the first
28March 15 that follows that designation.

29(c) (1) Notwithstanding subdivision (b), the county assessor of
30each county in which the personal property of a commercial air
31carrier has situs for an assessment year is solely responsible for
32assessing that property, applying the allocation formula set forth
33in Section 1152, and enrolling the value of the property in that
34county, but, in determining the unallocated fleet value for each
35make, model, and series of certificated aircraft of a commercial
36air carrier, the assessor may consult with the lead county assessor’s
37office designated for that commercial air carrier.

38(2) The lead county assessor’s office is subject to Section 322
39of Title 18 of the California Code of Regulations and Sections
P14   1408, 451, and 1606 to the same extent as the assessor described in
2paragraph (1).

3(d) Notwithstanding Section 469, an audit of a commercial air
4carrier shall be conducted once every four years on a centralized
5basis by an audit team of auditor-appraisers from at least one, but
6not more than three, counties, as determined by the Aircraft
7Advisory Subcommittee of the California Assessors’ Association.
8An audit, so conducted, shall encompass all of the California
9Personal Property and fixtures of the air carrier and is deemed to
10be made on behalf of each county for which an audit would
11otherwise be required under Section 469.

12(e) This section shall remain in effect only until December 31,
13begin delete 2015,end deletebegin insert 2021,end insert and as of that date is repealed.

14

SEC. 4.  

If the Commission on State Mandates determines that
15this act contains costs mandated by the state, reimbursement to
16local agencies and school districts for those costs shall be made
17pursuant to Part 7 (commencing with Section 17500) of Division
184 of Title 2 of the Government Code.



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