The total of net lease payments for real property divided by the cap rate provides the market value for air transportation.
Cities with airlines and air transportation companies provide the total taxable value, broken down by school districts, and multiplied by the mill rate to determine an average mill rate.
To determine the tax for air transportation the taxable value is multiplied by the average yearly mill rate to calculate the tax due. The tax due for each airline is allocated to each airport by the respective percentage.
The annual reports are due May 1st of each year.
Tax Rate
To determine the tax for air transportation, the true and full operative value is multiplied by 5% to get the taxable value, it is then multiplied by the local mill rate. A mill is 0.1% or 1/10 of a percent, in order to calculate you take 0.001 times your taxable value and multiply that by your total mills to identify your total tax owed.
For example, let's identify the property tax for an air transportation company that is worth $9,500,000 (true and full value) located where your local taxing entities total 250 mills.
- Air Transportation Companies True and Full Operative Value x 5%= Taxable Value. ($9,500,000 x .05 = $475,000)
- Taxable Value x mill = Mill Rate. ($475,000 x .001= $475)
- Mill Rate x # of taxable mills= Total Tax Owed. ($22.50/$45 x 250 = $118,750)
The total tax owed on an air transportation company worth $9,500,000 with a 250 mill levy would be $118,750.
How to Appeal
Appeals must be directed to the State Board of Equalization. If any company is aggrieved by any assessment of omitted property made by the tax commissioner under this chapter, it has the right to appeal to the State Board of Equalization for a review of such assessment. Such appeal must be taken by filing a notice of appeal with the tax commissioner within thirty days after the hearing date specified in the notice provided by section 57-07-02.
Tax Incentives
There are no tax incentives for this property, but there may be certain income or sales tax incentives that apply.
Payment Options
Property tax is a cumulation of different taxing entities and authorities. These various forms of local government include your county, city, township, school board, park board and any other entity that is authorized to levy property taxes. Air Transportation tax is collected by the state and then distributed to the counties.