Prang

DISCUSSION

1. Governing Legal Principles

Before discussing the detailed factual and procedural history of the case, it is useful to understand the law governing property taxation of the planes at issue. Oxy’s corporate jets are considered general aviation aircraft, as opposed to commercial aircraft or fractionally-owned aircraft (both of which are taxed differently). General aviation aircrafts are taxed as personal property in the county in which they are hangared. (NetJets Aviation, Inc. v. Guillory (2012) 207 Cal.App.4th 26, 34 (NetJets).) However, if a taxpayer can establish that its personal property has acquired a tax situs in a jurisdiction other than where it is domiciled, the domiciliary state must reduce its tax to include only such property values as are not subject to the potential of taxation elsewhere. (Ice Capades, Inc. v. County of Los Angeles (1976) 56 Cal.App.3d 745, 752 (Ice Capades).) This is a requirement imposed by the due process and commerce clauses of the United States Constitution. (Netjets at p. 49.) The issue is one of tax situs in the other jurisdiction, not taxation itself. A taxpayer can establish the necessity of apportionment simply by showing…