Tax Bills for Luxury Jet Owners in L.A. County
L.A. County Assessor Jeff Prang is focusing on wealthy private jet owners who have failed to pay property taxes on their luxury aircraft. Recently, prominent figures such as Jeff Bezos, Rihanna, and Stan Kroenke received hefty tax bills for their jets.
Notable Tax Bills
- Jeff Bezos: $244,000
- Rihanna: $104,000
- Stan Kroenke: $290,000 for two aircraft
- Phil Knight (Nike co-founder): $89,000
- Alex Rodriguez: $11,000
- Trey Parker & Matt Stone (South Park creators): $95,000
- Judge Judy (Judy Sheindlin): Two bills totaling an undisclosed amount, paid promptly after realization.
Tax Details
Private jet owners in California face an annual property tax of 1% based on the aircraft’s valuation, assessed according to where the aircraft is “habitually situated.” Failure to pay incurs a penalty fee. This initiative is projected to yield an additional $38 million for the county.
Evading Taxes
Many ultrawealthy jet owners have reportedly evaded these taxes through registration in states like Montana, which do not impose property taxes on personal planes. Some have also hidden aircraft in private airport hangars.
Prang’s office has improved tax collection by utilizing airplane location data, revealing jets that were not previously assessed. This move aims to tackle both tax evasion and ensure compliance among jet owners.
Privacy and Controversy
Utilizing ADS-B Out data to track aircraft has sparked some controversy, with critics arguing it infringes on privacy. However, Prang dismisses these concerns, asserting that the wealthy shouldn’t receive special treatment in fulfilling their tax obligations.
Currently, the assessor’s office is preparing for potential appeals from out-of-state residents disputing the tax assessments, illustrating the ongoing challenges in enforcing tax compliance among luxury vehicle owners.
