59-2-804 - Interstate allocation of mobile flight equipment.
59-2-804. Interstate allocation of mobile flight equipment.
(1) As used in this section:
(a) "Aircraft type" means a particular model of aircraft as designated by the manufacturerof the aircraft.
(b) "Airline ground hours calculation" means an amount equal to the product of:
(i) the total number of hours aircraft owned or operated by an airline are on the ground,calculated by aircraft type; and
(ii) the cost percentage.
(c) "Airline revenue ton miles" means, for an airline, the total revenue ton miles duringthe calendar year that immediately precedes the January 1 described in Section 59-2-103.
(d) "Cost percentage" means a fraction, calculated by aircraft type, the numerator ofwhich is the airline's average cost of the aircraft type and the denominator of which is the airline'saverage cost of the aircraft type:
(i) owned or operated by the airline; and
(ii) that has the lowest average cost.
(e) "Ground hours factor" means the product of:
(i) a fraction, the numerator of which is the Utah ground hours calculation and thedenominator of which is the airline ground hours calculation; and
(ii) .50.
(f) (i) Except as provided in Subsection (1)(f)(ii), "mobile flight equipment" is as definedin Section 59-2-102.
(ii) "Mobile flight equipment" does not include tangible personal property described inSubsection 59-2-102(25) owned by an:
(A) air charter service; or
(B) air contract service.
(g) "Mobile flight equipment allocation factor" means the sum of:
(i) the ground hours factor; and
(ii) the revenue ton miles factor.
(h) "Revenue ton miles" is determined in accordance with 14 C.F.R. Part 241.
(i) "Revenue ton miles factor" means the product of:
(i) a fraction, the numerator of which is the Utah revenue ton miles and the denominatorof which is the airline revenue ton miles; and
(ii) .50.
(j) "Utah ground hours calculation" means an amount equal to the product of:
(i) the total number of hours aircraft owned or operated by an airline are on the ground inthis state, calculated by aircraft type; and
(ii) the cost percentage.
(k) "Utah revenue ton miles" means, for an airline, the total revenue ton miles within theborders of this state:
(i) during the calendar year that immediately precedes the January 1 described in Section59-2-103; and
(ii) from flight stages that originate or terminate in this state.
(2) For purposes of the assessment of an airline's mobile flight equipment by thecommission, a portion of the value of the airline's mobile flight equipment shall be allocated tothe state by calculating the product of:
(a) the total value of the mobile flight equipment; and
(b) the mobile flight equipment allocation factor.
Enacted by Chapter 283, 2008 General Session