CHAPTER 209
AIR CARRIERS TAX

      *See Sec. 10-228b re tax credits for donations of computers to boards of education and public schools.

      See Secs. 10-416, 10-416a re tax credits for rehabilitation of historic homes and certified historic structures.

      See Sec. 12-217i re tax credits for investments in vehicles powered by clean alternative fuels and electricity.


Table of Contents

Sec. 12-243. Definitions.
Sec. 12-244. Allocation of tax.
Sec. 12-245. Local taxation of real and personal property.
Sec. 12-246. Filing of returns.
Sec. 12-247. Minimum tax.
Secs. 12-247a and 12-247b. Credit against tax for expenditures for air pollution abatement. Tax credit for expenditures for industrial waste treatment facilities.
Sec. 12-248. Application of corporation business tax.

      Sec. 12-243. Definitions. As used in this chapter:

      (a) "Air carrier" means any person, firm, partnership, corporation, limited liability company, association, trustee, receiver or assignee which engages in the transportation by air of persons or property for hire and which makes landings or takeoffs or air pickups or deliveries in this state;

      (b) "Aircraft arrivals and departures" means scheduled landings and takeoffs in this state of the aircraft of an air carrier, scheduled air pickups and deliveries in this state by the aircraft of an air carrier, and, in the case of nonscheduled operations, shall include all landings and takeoffs, pickups and deliveries;

      (c) "Flight equipment" means full equipment of aircraft for flight;

      (d) "Originating revenue" within this state means revenue to an air carrier from the transportation of revenue passengers and revenue cargo, exclusive of express and mail, first received by such carrier either as originating or connecting traffic at airports within this state. When it cannot otherwise be determined, the revenue of an air carrier from the transportation of revenue cargo attributable to a particular airport for any period shall be computed by multiplying the pounds of revenue cargo first received by such air carrier at such airport during such period by the average revenue per pound received by such air carrier from the transportation of revenue cargo over its entire system for the same period;

      (e) "Revenue tons handled" by an air carrier at an airport means the weight in tons of revenue passengers, at two hundred pounds per passenger, and revenue cargo first received either as originating or connecting traffic or finally discharged by such carrier at such airport.

      (1949 Rev., S. 1922; P.A 95-79, S. 29, 189.)

      History: P.A. 95-79 redefined "air carrier" to include a limited liability company, effective May 31, 1995.

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      Sec. 12-244. Allocation of tax. The tax provided for in chapter 208 on the net income or minimum base, as far as air carriers incorporated or doing business in this state are concerned, shall be allocated to this state by use of the arithmetical average of the following three ratios, provided, if it should be found that such ratios should so operate as to subject a taxpayer to taxation on a greater or lesser portion of its business than is reasonably attributable to this state, the provisions of section 12-221a shall apply: (a) The ratio which the aircraft arrivals and departures within this state scheduled by such air carrier during the income year bears to the total aircraft arrivals and departures scheduled by such carrier on its entire system during the same period; provided, in the case of nonscheduled operations, all arrivals and departures shall be substituted for scheduled arrivals and departures; (b) the ratio which the revenue tons handled by such air carrier at airports within this state during the income year bears to the total revenue tons handled by such carrier at all airports on its entire system during the same period; (c) the ratio which such air carrier's originating revenue within this state for the income year bears to the total originating revenue of such carrier from its entire system for the same period.

      (1949 Rev., S. 1923; 1949, 1951, S. 1106d; P.A. 73-350, S. 15, 27.)

      History: P.A. 73-350 substituted reference to Sec. 12-221a for reference to repealed Sec. 12-221.

      See Chapter 138c re tax credits for donations to Rental Housing Assistance Trust Fund.

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      Sec. 12-245. Local taxation of real and personal property. Real property and personal property, except flight equipment owned or being operated by a public air carrier which air carrier is engaged principally in scheduled or nonscheduled interstate or foreign air transportation for hire under a certificate of public convenience and necessity or other economic authority issued by the civil aeronautics board or its successor, shall be taxed locally in accordance with the applicable laws of this state.

      (1949 Rev., S. 1924; 1969, P.A. 521.)

      History: 1969 act replaced exception for flight equipment of "all carriers" with exception for flight equipment owned or operated by specific types of public air carriers.

      Construed and applied. 166 C. 413.

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      Sec. 12-246. Filing of returns. Air carriers subject to the provisions of this chapter shall file returns on a calendar year basis unless a fiscal year other than the calendar year has been established for federal income tax purposes, in which event such fiscal year shall be used.

      (1949 Rev., S. 1925; 1951, S. 1107d; P.A. 99-121, S. 8, 28.)

      History: P.A. 99-121 deleted provision re closing of books by authorization or order of civil aeronautics board and added provision re establishment of fiscal year for federal income tax purposes, effective June 3, 1999, and applicable to income years commencing on or after January 1, 2000.

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      Sec. 12-247. Minimum tax. The tax imposed shall in no case be less than two hundred fifty dollars for each income year.

      (1951, 1953, June, 1955, S. 1108d; 1957, P.A. 80, S. 1; 1959, P.A. 175, S. 1; 564, S. 1; 1961, P.A. 604, S. 4; February, 1965, P.A. 461, S. 9; June, 1969, P.A. 1, S. 16; June, 1971, P.A. 5, S. 113; 1972, P.A. 285, S. 8; P.A. 73-350, S. 16, 27; P.A. 81-66, S. 4, 5; 81-255, S. 24, 37; P.A. 85-159, S. 4, 19; 85-469, S. 4, 6; P.A. 99-121, S. 9, 28.)

      History: 1959 acts included contingent reserves and open book accounts in computation of tax basis, and added exclusion for trade accounts payable; 1961 act increased alternate tax rate from 1.9 mills per dollar to 2.5 mills per dollar, and increased the minimum tax from $20 to $25; 1965 act specified that 2.5 mill rate applies through income years beginning before January 1, 1966, and increased rate to two and five-eighths mills thereafter and specified that $25 minimum tax applies through same years and is increased to $30 thereafter; 1969 act set temporary mill rate increase at four mills and temporary increase in minimum tax to $45 for income years beginning on and after January 1, 1969, and before January 1, 1971; 1971 act substituted 1973 for 1971 as closing date of temporary increase; 1972 act made four mill rate and $45 minimum tax permanent; P.A. 73-350 deleted provisions specifically applicable to unincorporated air carriers, leaving provision re reduction of taxes when incorporated air carrier has operated 11 months or less, changed reference to taxes under "this section" to taxes imposed under "this chapter and chapter 208" and raised minimum tax to $50, effective May 9, 1973, and applicable to income years beginning on or after January 1, 1973; P.A. 81-66 increased minimum tax from $50 to $100, effective May 4, 1981, and applicable to income years commencing on or after January 1, 1981; P.A. 81-255 increased minimum tax to $250, effective July 1, 1981, and applicable to income years commencing on or after January 1, 1981; P.A. 85-159 reduced minimum tax to $100 for income years of corporations commencing on or after January 1, 1985; P.A. 85-469 revised effective date of P.A. 85-159 but without affecting this section; P.A. 99-121 deleted provisions re reduction of tax in proportion to fractional part of year during which air carrier operated and increased the amount of the minimum tax from $100 to $250, effective June 3, 1999, and applicable to income years commencing on or after January 1, 2000.

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      Secs. 12-247a and 12-247b. Credit against tax for expenditures for air pollution abatement. Tax credit for expenditures for industrial waste treatment facilities. Sections 12-247a and 12-247b are repealed.

      (1967, P.A. 754, S. 21; 1969, P.A. 291, S. 1; 758, S. 16; 1971, P.A. 872, S. 33; P.A. 73-350, S. 17, 27.)

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      Sec. 12-248. Application of corporation business tax. So far as the same are consistent with this chapter, the provisions of chapter 208 shall apply to incorporated air carriers.

      (1949 Rev., S. 1926; 1951, June, 1955, S. 1110d.)

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