3.40.070 Classification of aircraft.
A. Pursuant to AS 29.45.050(b)(2), for purposes of taxation, commercial aircraft that have been issued an N number by the Federal Aviation Administration (“FAA”) by January 1st of the tax year and are less than 12,500 pounds takeoff weight shall be totally exempted from ad valorem taxes and shall be taxed at the rate determined annually by the assembly during the budget adoption process.
B. The owner of record of an aircraft that has been dismantled, destroyed or crashed and the FAA N number has been retained by the aircraft’s owner of record may submit to the assessor proof of condition that would allow for taxation of that aircraft, if approved by the assessor, at a rate determined by the assembly during the budget adoption process. Aircraft for which such registration or licensing has lapsed or that has not passed the annual inspection required by the FAA shall not qualify on this basis alone for ad valorem taxation unless it has been dismantled, destroyed or crashed.
C. Commercial aircraft with a gross takeoff weight of more than 12,500 pounds shall be taxed on an ad valorem basis and in accordance with the Kodiak Island Borough landing schedule formula. The KIB landing schedule formula provides for the prorated calculation of scheduled aircraft by dividing the total hours in a year into the total time aircraft operated by a scheduled carrier are in the Kodiak Island Borough, and multiplying the result by the assessed value of each aircraft.
D. Definitions. For purposes of this section:
“Aircraft” means any engine powered contrivance invented, used, or designed to navigate, or fly in, the air and that is capable of being manned and is required by the FAA to be registered and certified in order to be manned.
“Commercial aircraft” means any aircraft transporting passengers and/or cargo or is employed for fish spotting, agricultural, aquacultural or other purposes for some payment, or other consideration, including money or services rendered.
“Crashed” means aircraft for which only parts remain that, due to their condition, can no longer be assembled to create any contrivable aircraft. This shall be evidenced by an FAA accident report and/or copy of an insurance claim that determines the aircraft to be a total loss.
“Destroyed” means aircraft that have been damaged by age, weather, neglect and/or external influences outside the owner’s control, and only unusable parts remain that, due to their condition, can no longer be assembled to create any contrivable aircraft. This shall be evidenced by photographs and a physical inspection by the borough assessing staff appraiser if deemed necessary by the borough assessor.
“Dismantled” means aircraft that have been voluntarily disassembled and only parts remain that can no longer be assembled to create any contrivable aircraft. Evidence such as photographs and a physical inspection by the borough assessing staff appraiser shall be provided or allowed if deemed necessary by the borough assessor.
E. An aircraft owner may appeal the determination of the borough assessor under subsections B and C of this section using the same procedures for appeal of real and personal property assessments as set out in KIBC 3.35.040(C)(4) and 3.35.050(C). [Ord. FY2015-11 §2, 2015; Ord. FY2011-07 §2, 2010. Formerly §3.40.080].