NAFA members Senior Counsel Richard W. Petty and Associate Alex J. Welfringer with Holland & Knight share their latest article on California's Aircraft Personal Property Tax.
California law treats aircraft as taxable tangible personal property subject to an annual appraisal and local property taxation. Unless a specific statutory exemption applies, every aircraft owner with aircraft that is based in or habitually hangered in the state faces an annual filing obligation, potential penalties for noncompliance, and a valuation process that can significantly affect the resulting tax bill.
Many counties, including Los Angeles County, have recently increased their enforcement efforts for noncompliance. With the April 1 filing deadline for 2026 aircraft property statements now passed, this Holland & Knight alert summarizes the key compliance requirements so that aircraft owners and operators – and their advisors – can plan ahead for the next assessment cycle.
California's Legal Landscape
California's Revenue and Taxation Code requires an annual assessment for property taxes of non-commercial aircraft that is regularly or "habitually situated" in California.1 Qualifying aircraft are assessed at their tax situs – the location of the airport or hangar where the aircraft is regularly or "habitually situated." This distinction matters: The county where a private aircraft is habitually based has exclusive assessment authority. Temporarily removing an aircraft from the county on the January 1 lien date will not defeat the tax situs or exempt the aircraft from property taxes if the aircraft is regularly or habitually located in that county.
This article was originally published by Holland & Knight on September 22, 2026.