California Aircraft Personal Property Tax: Key Compliance Rules and Deadlines for Owners

California law classifies aircraft as taxable tangible personal property subject to annual appraisal and local property taxation, applying to any person or entity that owns, claims, possesses, or controls an aircraft in the state on the January 1 lien date, whether used for personal, training, rental, charter, taxi, business, fractional ownership, or show and museum purposes. Non-commercial aircraft habitually situated in California must be assessed annually by the county where they are regularly based, which holds exclusive assessment authority; temporarily removing an aircraft from the county on the lien date does not defeat tax situs, and the owner of record on January 1 remains liable for that year's tax regardless of a later sale.

Owners must file an annual Aircraft Property Statement (Form BOE-577) with the county assessor by April 1 each year. Assessors identify taxable aircraft using data from the California State Board of Equalization, the FAA, airport operator reports, and on-site inspections, and several counties, including Los Angeles County, have recently stepped up enforcement against noncompliance. Missing the filing deadline triggers a mandatory penalty of ten percent of the unreported aircraft's market value, added to its assessed value, though the penalty may be abated for reasonable cause upon timely written application.

Two exemptions apply: an "Aircraft of Historical Significance" exemption for original, restored, or replica heavier-than-air powered aircraft 35 years or older, or types of which fewer than five exist worldwide, claimed via Form BOE-260-B by 5 p.m. on February 15 for a full exemption or by August 1 for a partial one; and a provision allowing non-California residents present solely under military orders to declare tax situs elsewhere. With the April 1, 2026 filing deadline now passed, owners and operators are advised to plan for the next assessment cycle.