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Business News›News›International›Global Trends›Jeff Bezos, world's third richest man, received $244,000 jet tax bill as LA County used a secret tracking system to catch wealthy aircraft owners

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Jeff Bezos, world's third richest man, received $244,000 jet tax bill as LA County used a secret tracking system to catch wealthy aircraft owners
Synopsis

Amazon founder Jeff Bezos, who sits on a fortune of $263 billion as the third-richest man on the planet, was served notice by the Los Angeles County for about $244,000 in overdue taxes and fees tied to his luxury jet. The development comes as Los Angeles County is stepping up efforts to recoup overdue taxes from wealthy jet owners. The LA County officials used a secret tracking system to obtain detailed aircraft location data.

Amazon founder Jeff Bezos received a roughly $244,000 bill from Los Angeles County over overdue taxes and fees tied to his luxury private jet. Jeff Bezos found himself paying a heavy bill officials intensified the crackdown on wealthy aircraft owners who may have failed to pay California property taxes. The bill is part of a much larger effort led by Los Angeles County Assessor Jeff Prang to identify private jets that spend significant time in the county but have not been properly taxed there.



Under California law, private aircraft are subject to an annual property tax of about 1% of their assessed value. It doesn't really matter where a plane is registered or where its owner lives. Instead, the tax depends on where the aircraft is “habitually situated” when it is not flying, according to Luxury Launches.



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That means a private jet belonging to someone who lives elsewhere can still owe Los Angeles County taxes if the aircraft spends most of its time on the ground in the county.



Owners are also required to report their aircraft and its value to the county assessor. Those who miss the payment deadline can face additional penalties on top of the underlying tax bill. According to a Los Angeles Times report, Bezos was among the aircraft owners who received a final bill by the June 30 deadline. His bill was approximately $244,000.




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Los Angeles County expects to collect $38 million

The Bezos bill is only part of a much broader investigation. The assessor's office mailed hundreds of bills to aircraft owners it says failed to pay the required taxes on time. The effort is expected to bring an additional $38 million into county coffers.

Jeff Prang, who won reelection in June, said the investigation revealed that the underpayment problem was much larger than his office had initially estimated. The county's focus has been on wealthy individuals and companies whose aircraft may have been spending substantial amounts of time in Los Angeles County without being properly reported for taxation.



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How officials are tracking private jets

The investigation received a major boost last year when the assessor's office obtained detailed aircraft location data. The information comes from ADS-B Out, a tracking system that the Federal Aviation Administration mandated by 2020 primarily to help with collision avoidance and air traffic management.

Reuters

Amazon founder Jeff Bezos received a roughly $244,000 bill from Los Angeles County over overdue taxes and fees tied to his luxury private jet

The data, known as ADS-B Out, is considered one of the most accurate ways to determine a plane’s location, and the Federal Aviation Administration required jets to adopt it by 2020 to help air traffic controllers avoid collisions. The change proved to be a boon for local tax assessors, which had a clearer vantage point into the planes with unpaid taxes in their backyard.



For tax officials, however, the data offers another advantage: it can provide a clearer picture of where aircraft are actually spending their time. That can help investigators identify planes that repeatedly remain in Los Angeles County despite not appearing to be paying local aircraft property taxes.



The use of ADS-B data for tax enforcement has also become politically controversial. Louisiana has barred local officials from accessing the data, while some Republican lawmakers have pushed for restrictions, citing concerns about pilot privacy. Prang has rejected those arguments, calling them an excuse used by owners of corporate jets seeking special treatment unavailable to ordinary taxpayers.

Jeff Bezos wasn't the only billionaire facing a bill

Bezos was far from the only high-profile name identified in the county's effort. A jet linked to singer Rihanna reportedly owed about $104,000, while Los Angeles Rams owner Stan Kroenke was billed roughly $290,000 across two aircraft.



Nike co-founder Phil Knight, whose aircraft carries the custom “N1KE” tail number, owed about $89,000. Retired baseball star Alex Rodriguez's plane was billed around $11,000, while South Park creators Trey Parker and Matt Stone reportedly owed about $95,000.



Television personality Judy Sheindlin, better known as Judge Judy, received two bills.

FAQs

How much does Jeff Bezos reportedly owe in jet taxes?





Jeff Bezos received a bill of about $244,000 in overdue taxes and fees tied to his private jet.



How are private jets taxed in California?



California generally imposes an annual property tax of about 1% on private aircraft, based on their assessed value and where they are “habitually situated.”



Does a plane's registration determine where it pays property tax?



No. The aircraft's registration and the owner's residence are not the deciding factors. Where the plane is habitually situated can determine which local jurisdiction is owed the tax.



What is ADS-B Out?



ADS-B Out is an aircraft tracking technology used primarily for air-traffic safety and collision avoidance. Its location data can also help tax officials determine where aircraft spend significant amounts of time.



Was Jeff Bezos the only celebrity affected?



No. Aircraft linked to Rihanna, Stan Kroenke, Phil Knight, Alex Rodriguez, Trey Parker, Matt Stone and others were also identified in the county's tax crackdown.



How much money does Los Angeles County expect to recover?



The assessor's broader effort is expected to generate about $38 million in additional county revenue.

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Jeff BezosAmazon founder Jeff BezosJeff Bezos private jetJeff Bezos jet taxLos Angeles Countyprivate jet taxCalifornia aircraft taxJeff Prangluxury private jetsbillionaire jet tax

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