NAC361.462. Deduction of depreciated cost of nonallocable flight equipment.

     1. The depreciated cost of the nonallocable flight equipment will be deducted from the total depreciated cost of the flight equipment.

     2. For the purposes of this section:

     (a) “Flight equipment” includes, without limitation, airframes, engines, propellers, radio equipment, miscellaneous flight equipment, spare parts and assemblies, leased aircraft and improvements to leased equipment.

     (b) “Nonallocable flight equipment” means only that property or equipment which is not attached or required to be aboard or part of an aircraft which is ready for flight.

     3. Every item of property which is required to be aboard for the operation of the aircraft will be classified as allocable flight equipment.

     4. The only instances when an aircraft will be classified as nonallocable are when:

     (a) The carrier purchased an aircraft which was not delivered or was delivered too late to have participated in the creation of the allocation statistics; or

     (b) An aircraft which is owned by the carrier was leased to and operated by another party.

     5. The percentage of the total amount of tangible personal property of the carrier which the allocable flight equipment represents will be calculated and applied to the total estimate of value of the assessable property of the carrier.

     [Tax Comm’n, Property Tax Reg. part No. 15D, eff. 10-30-79]