One of the primary requirements to qualify for the exemption is that the aircraft must have been available for public display in an aerospace museum for 90 days or more during the 12-month period that immediately preceded the lien date for the year that the exemption is claimed. Unlike most exemptions, the aircraft for display exemption is not based on its status as of lien date, but based on this display status.
[Revenue and Taxation Code section 217.1, subdivision (e)]
The aerospace museum that the aircraft is displayed must be one that is either publicly owned or one that is operated by a nonprofit organization that qualifies for exemption under section 23701(d) and regularly open to the public. Regularly open to the public means that the aerospace museum was open to the public for 20 or more hours per week for 35 or more weeks during the 12-month period that immediately preceded the lien date for the year for which the exemption is claimed.
If the museum has been open for less than 35 weeks or for less than 20 hours per week during the required time period, the exemption may still be granted if the director or other officer of the museum certifies in writing that the museum will be open for not less than 20 hours per week for not less than 35 weeks during the 12-month period beginning with the date the aerospace museum was first opened
In addition, such personal property must meet the at least one of following criteria:
- The aircraft has been restored or maintained, whether currently certified or not for flight purposes.
- The aircraft is donated in perpetuity to the aerospace museum.
This exemption does not apply to any aircraft loaned to the aerospace museum by any person who holds aircraft primarily for purposes of sale.