California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2.5 - Uniform Division of Income for Tax Purposes Act › Section 25137-7 - Air Transportation Companies-Allocation and Apportionment of Income

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Definitions.
(1) The unitary business of air
					 transportation includes the operations of scheduled airlines, supplemental
					 airlines and air taxis. All members of a unitary group that are engaged in a
					 unitary business of providing air transportation must apportion business income
					 from air transportation as provided in this regulation.
(2) As used in this regulation, "certificated
					 aircraft" means aircraft operated by an air carrier or foreign air carrier
					 engaged in air transportation, as defined in subsections (3), (5), (10), (11),
					 (14), (15), (22), (23), (24), (25) and (26) of
					 49 USC
					 1301, while there is in force a certificate
					 or permit issued by the Civil Aeronautics Board of the United States, the
					 Department of Transportation or its successor, or a certificate or permit
					 issued by the California Public Utilities Commission, or its successor,
					 authorizing such air carrier to engage in such transportation.
(3) As used in this regulation, "air taxis"
					 means aircraft used by an air carrier which does not utilize aircraft whose
					 maximum certificated takeoff weight as determined by the Federal Aviation
					 Administration, is greater than 12,500 pounds in air transportation and which
					 does not hold a certificate of public convenience and necessity or other
					 economic authority issued by the Civil Aeronautics Board of the United States,
					 the Department of Transportation, or its successor, or by the California Public
					 Utilities Commission, or its successor.
(4) "The time in state" is the proportionate
					 amount of time, both in the air and on the ground, that certificated aircraft
					 have spent within the state during a representative period as compared to the
					 total time in the representative period.
(5) "Arrivals and departures" is the number
					 of arrivals in and departures from airports within the state of certificated
					 aircraft during a representative period as compared to the total number of
					 arrivals in and departures from airports both within this state and elsewhere
					 in the representative period.
(6)
					 "Ton-miles" means the product of a plane's tonnage and the miles
					 traveled.
(7) "Flight personnel"
					 means the air crew aboard an aircraft assisting in the operation of the
					 aircraft or the welfare of passengers while in the air.
(8) "Rotables" means components or parts
					 which are rotated between storage and operational use on aircraft.
(9) "Air time" is the elapsed time from when
					 an aircraft, after blocks are removed from the aircraft wheels, first moves
					 under its own power from the boarding ramp for the purposes of flight, to the
					 time the aircraft comes to a rest after landing and blocks are placed on the
					 aircraft wheels.