Property Tax Savings Available for Missouri Business Aircraft
Aircraft housed in Missouri and owned and used by businesses may be eligible for a reduced value through assessment and allocation by the Missouri State Tax Commission, resulting in tax savings.
While business aircraft are required to be reported on the annual business personal property returns to local county assessors, Missouri also allows a reduced assessed value based on the miles flown within Missouri compared to total miles flown in the previous year.
BKD’s property tax professionals are experienced in flight log analysis to help prepare these forms for the Missouri State Tax Commission. For 2021, the State Tax Commission is accepting these applications until December 1.
Based on recent allocations BKD assisted with preparing, businesses obtained annual tax savings of $23,000 to $62,000. Actual savings achieved will depend on the total miles versus miles within Missouri from the flight logs, as well as the aircraft’s current fair market value.
The following information is needed to prepare the allocation submission forms for 2021:
- Flight logs for the 2020 calendar year reflecting dates, departure, and arrival airports
- Copy of the FAA registration reflecting the ownership of the aircraft and aircraft details
- Copy of the county business personal property return for 2021, or prior year tax bill
Under certain circumstances, an aircraft leased exclusively to a business also may qualify for allocation and reduction. For leased aircraft, a copy of the lease also will be required.
For more information, reach out to your BKD Trusted Advisor™ or use the Contact Us form below.