270.074 VALUATION OF FLIGHT PROPERTY; METHODS OF APPORTIONMENT;
RATIO OF TAX.
Subdivision 1. Valuation.
The commissioner shall determine the market valuation of all
flight property operated or used by every airline company in air commerce in this state. The
valuation apportioned to this state of such flight property shall be the proportion of the total
valuation thereof determined on the basis of the total of the following percentages:
(1) 33-1/3 percent of the percentage which the total tonnage of passengers, express and
freight first received by the airline company in this state during the preceding calendar year plus
the total tonnage of passengers, express and freight finally discharged by it within this state during
the preceding calendar year is of the total of such tonnage first received by the airline company or
finally discharged by it, within and without this state during the preceding calendar year.
(2) 33-1/3 percent of the percentage which, in equated plane hours, the total time of all
aircraft of the airline company in flight in this state during the preceding calendar year, is of the
total of such time in flight within and without this state during the preceding calendar year.
(3) 33-1/3 percent of the percentage which the number of revenue ton miles of passengers,
mail, express and freight flown by the airline company within this state during the preceding
calendar year is of the total number of such miles flown by it within and without this state during
the preceding calendar year.
Subd. 2. Other apportionment methods.
The method prescribed by subdivision 1 shall be
presumed to determine fairly and correctly the value of the flight property of an airline allocable
to this state. Any airline aggrieved by the valuation of the flight property or the application to its
case of the apportionment methods prescribed by subdivision 1, may petition the commissioner
for determination of the valuation or the apportionment thereof to this state by the use of
some other method. Thereupon, if the commissioner finds that the application of the methods
prescribed by subdivision 1 will be unjust to the airline, the commissioner may allow the use of
the methods so petitioned for by the airline, or may determine the valuation or apportionment
thereof by other methods if satisfied that such other methods will fairly reflect such valuation
or apportionment thereof.
Subd. 3. Tax capacity.
(a) The flight property of every airline company shall have a
tax capacity of 70 percent of the value thereof apportioned to this state under subdivision 1,
except that quiet aircraft shall have a tax capacity of 40 percent of the value determined under
subdivision 1. Quiet aircraft shall include turboprops and aircraft defined as stage III by the
Federal Aeronautics Administration. If, in the opinion of the commissioner, other aircraft may be
qualified as quiet aircraft, the commissioner may adopt rules providing additional qualifications.
(b) The flight property of an airline company that owns or leases aircraft the majority of
which are turboprops, and which provides, during six months or more of the year that taxes are
levied, scheduled passenger service to three or more airports inside or outside of this state that
serve small or medium sized communities, shall be assessed at 50 percent of the assessment
percentage otherwise set by paragraph (a).
History: 1945 c 418 s 5; 1953 c 672 s 2,3; 1971 c 427 s 15; 1986 c 444; 1987 c 268 art 14
s 9; 1988 c 719 art 5 s 84