42-14254. Determination of value


A. On or before August 31 the department shall determine the full cash value of all
flight property that is operated in this state in air commerce by each airline
company. The full cash value is the value determined as of January 1 of the valuation
year.


B. The department shall:


1. Determine the valuation of flight property by fleet type.


2. Determine the valuation of each fleet type by the original cost less
depreciation.


3. Compute depreciation using fifteen year straight line depreciation to salvage
value. Salvage value is:


(a) Ten per cent of original cost of aircraft that are out of production.


(b) Twenty-five per cent of original cost of aircraft that are being manufactured
as of January of the valuation year.


4. Allow additional obsolescence if supported by market evidence.


C. Small flight property that is operated in this state in air commerce shall be
valued at thirty per cent of its original cost less depreciation and additional allowed
obsolescence.


D. The department shall determine the valuation that is apportioned to this state
of each fleet type as the proportion of the total valuation determined on the basis of
the total of the following percentages:


1. Fifty per cent of the percentage that the total state ground time during the
preceding calendar year is of the total system ground time during the preceding calendar
year.


2. Fifty per cent of the percentage that the total mileage scheduled within this
state of the fleet type on flights operated in this state during the preceding calendar
year is of the total mileage scheduled within and without this state of the fleet type
during the preceding calendar year.