California Enacts Frax Tax

 - October 9, 2007, 11:47 AM

According to the National Air Transportation Association (NATA), a law recently approved by the California State Assembly would assess all fractional ownership flights in the state with personal property taxes. The legislation–California Senate Bill 87, which was signed into law on August 24–says all flights operated under a fractional ownership program in California would be subject to the property taxes of the county in which the operation occurs. NATA said the legislation establishes a formula for determining the amount of tax levied, which will be the responsibility of the ownership management to pay. The formula includes a fraction by which the total number of operations conducted in a county is divided by the total number of operations for the fractional ownership company.