Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Audit Aircraft topic
No spam. Unsubscribe anytime.
Cherokee County proposes aircraft valuation audit; school system to cost-share initial year
Summary
County manager presented a proposed five-year agreement with a private aircraft-valuation auditing firm to identify untaxed or misreported aircraft at the Cherokee County Airport; the initial year's maximum cost was estimated at $253,062 and the Cherokee County School System would pay 70% under a proposed IGA while the county would pay 30%.
County staff described a proposed agreement with Aviation Capital Partners LLC (doing business as Specialized Tax Recovery) to provide an aircraft valuation auditing program at the Cherokee County Airport during the March 18 work session. The county manager said the five-year agreement would implement a detailed audit of based aircraft to identify untaxed or misreported planes and increase ad valorem tax revenue; the total contract value was capped at $350,000 for the term.
The county manager said the initial year of work is the most intensive and was estimated not to exceed $253,062. The county's proposed intergovernmental agreement (IGA) with the Cherokee County School System would split costs: the county would pay 30% and the school system would pay 70% of annual contract costs. Using the 2025 proposal figure, the county's share would be about $75,918.75 and the school system's share about $177,143.75.
Tax-assessment staff told the board the vendor has access to data on aircraft locations and ownership and can track inventory; the assessor noted that aircraft must generally be located in the county for six months or longer to be considered taxable there. Board members discussed the likely diminishing costs after the first year (the vendor conducts a multi-year review initially and subsequent years will be lower-cost follow-ups) and whether it would be more cost-effective to use county staff for periodic checks; county staff said the firm's access to data and experience justify the approach.
Why it matters: aircraft based at the county airport can represent substantial personal-property value; identifying untaxed or misreported aircraft could generate additional ad valorem revenue for the county and school system. The county manager said the firm is paid from recovered revenue on a contingency schedule outlined in the proposal (a sliding fee tied to value recovered). No final contract award occurred during the work session; the matter was presented for the board's consideration at the evening meeting.
County staff also noted the airport's growth as a reason to pursue an audit, and staff said final invoicing will be based on actual costs incurred and that subsequent years will be expected to cost less once inventory is established.
