Property Tax Savings Available for Texas Business Aircraft

Thoughtware Alert Published: Sep 27, 2021
A plane taking off

Aircraft housed in Texas and owned and used by businesses may be eligible for a reduced value through allocation of flights based on departure locations, resulting in tax savings.

While business aircraft are required to be reported on the annual business personal property returns to local county appraisal districts, Texas also allows a reduced assessed value based on the departures from Texas compared to total departures in the previous year.  

BKD’s property tax professionals are experienced in flight log analysis and can help prepare the annual allocation form to be submitted to the local appraisal district. To receive the full benefit of the allocation in 2022, the application deadline is April 30, 2022.  

Based on recent allocations BKD assisted with preparing, businesses obtained annual tax savings of $24,000 to $28,000. Actual savings achieved will depend on the data shown in the flight logs, as well as the aircraft’s current fair market value.

The following information is needed to prepare submission forms for 2022:

  • Flight logs for the 2021 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

For more information, reach out to your BKD Trusted Advisor™ or use the Contact Us form below.

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