California Pilots Challenge Use of ADS-B Data for Aircraft Taxes

Los Angeles County is using ADS-B data to identify aircraft for property-tax collection.

Shutterstock [Philip Pilosian]
Gemini Sparkle

Key Takeaways:

  • Los Angeles County is using federal aircraft tracking data (ADS-B) to identify and tax privately owned aircraft, expecting to generate $38 million in additional revenue.
  • California pilots and aviation groups strongly oppose this practice, arguing that data collected for aviation safety should not be repurposed for tax enforcement, calling it a "Big Brother" approach.
  • The county defends its actions as necessary for fair property assessment and preventing tax evasion, sending notices to aircraft owners based on activity within or habitual presence in the Los Angeles area.
  • The controversy has led to proposed legislation in Congress aimed at prohibiting state and local governments from accessing federally collected aircraft tracking data for tax purposes.
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California pilots are pushing back against Los Angeles County’s use of aircraft tracking data for property-tax collection, arguing that information gathered for aviation safety should not be repurposed to track aircraft owners for tax purposes.

Los Angeles County Assessor Jeffrey Prang says his office is using ADS-B data to identify privately owned aircraft that may have gone unreported for tax purposes. The county announced in March that new software had identified previously unassessed aircraft and was expected to generate about $38 million in additional revenue, including taxes from previous years.

The county’s effort has drawn criticism from aviation groups, including the California Pilots Association. Vice President Eve Lopez called the practice a “Big Brother” approach in a Fox News report, arguing that aircraft owners may not expect data generated by a federally mandated safety system to be used for tax enforcement.

According to an analysis published by Aero Law Group in July, Los Angeles County sent nearly 1,000 notices to aircraft owners around the country. Some of the aircraft were based outside the county, with assessments apparently tied, at least in part, to how frequently they operated in the Los Angeles area.

California law allows aircraft to be taxed as personal property when they are “habitually situated” in the state. For aircraft that operate in multiple locations, the tax can be apportioned based on where the aircraft spends its time. The analysis indicates that past flight activity may factor into the county’s calculations, although the threshold for triggering a tax assessment remains unclear.

Prang has defended the practice, saying his office’s responsibility is to ensure privately owned aircraft are assessed fairly alongside other taxable property. In a recent letter published by The Wall Street Journal, he argued that restricting government access to public data would make it easier for aircraft owners to avoid taxes and shift the burden to other taxpayers.

“Tax fairness depends on everyone playing by the same rules,” Prang wrote.

The controversy has reached Capitol Hill, where legislation has been proposed that would prevent state and local governments from accessing certain federally collected aircraft tracking data for tax purposes.

Amelia Walsh

Amelia Walsh is a private pilot who enjoys flying her family’s Columbia 350. She is based in Colorado and loves all things outdoors including skiing, hiking, and camping.
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