1976, January, Pg. 17. Aircraft Registration and Taxation in Colorado.

• Author: by J. Scott Hamilton

5 Colo.Law. 17

Colorado Lawyer

1976.

1976, January, Pg. 17.

Aircraft Registration and Taxation in Colorado

17Aircraft Registration and Taxation in Coloradoby J. Scott Hamilton

In 1974, the General Assembly of the state of Colorado enacted into law a new statute concerning the registration and taxation of aircraft, the provisions of which became effective January 1, 1975.(fn1) Since that time a great deal of confusion has arisen concerning the enforcement of this act, and a number of aircraft have been seized and chained down by the county sheriffs in enforcing the act's provisions---much to the chagrin of the owners of these aircraft.

Many aircraft owners do not understand the provisions of the new act and are surprised by the zeal with which the act is being enforced in many counties. Questions they have of their legal counsel include: Do I have to register my aircraft? Do I have to pay any fees? If so, when and how much? What is the basis for computation of these fees? What are the penalties I might face for non-payment or late payment of these fees? Must I pay sales or use tax on the aircraft before I can register the aircraft?

Aircraft Subject to Registration

Although the legislature declared that its intent in enacting the new law was to provide for the registration of each aircraft in the state of Colorado,(fn2) the law specifically exempts certain aircraft from registration(fn3) and leaves considerable question as to the applicability of the statute to certain other aircraft. The statute specifically exempts aircraft owned by the government, aircraft owned or leased by "air carriers," aircraft constituting the stock in trade of a manufacturer, dealer, distributor, or retailer of aircraft if such aircraft are not used for commercial purposes, aircraft based in another state, and gliders used entirely for recreational or sporting purposes.(fn4) Although the act is not clear on this point, it also appears that aircraft based on privately owned landing areas used for a non-commerical purpose are not subject to the registration and taxation requirements.(fn5)

Fees

The act establishes two separate fees: a registration fee(fn6) and a specific ownership tax.(fn7)

Registration Fee. The registration fee, which is based on the weight of the aircraft, is typically the larger of the two. The basis for computation of the...