With the 2022 tax season well underway, Texas companies would be wise to seek opportunities to reduce their tax burden. Proprietors of business aircraft within the state may be able to take advantage of Texas legislation that can save them money. The law allows owners to potentially reduce the assessed value of the aircraft based on data from the flight log.

As most enterprises are aware, Texas requires the reporting of business personal property renditions to county-level appraisal districts. However, based on the percentage of aircraft departures from Texas, businesses may be able to directly reduce the assessed value of flight-based transportation vehicles. This reduction can effectively decrease the overall tax bill.

While a tax professional is best qualified to provide advice, businesses will need three specific documents as part of the submission process:

1) Calendar year 2021 flight logs, including departure and arrival dates and locations

2) Copy of the FAA aircraft registration

3) Copy of the tax bill for the previous year, or the 2021 county business personal property tax return

The final annual allocation form and application package must be submitted by April 30, 2022, to receive the full benefit for Texas Business Aircraft Owners.