Minnesota Business Aviation Association

History of Business and General Aviation Aircraft Registration 1945Regulatory Statutes enacted 1957Civil Air Patrol exempted from aircraft registration 1987Minimum recreational a/c tax raised from $10 to $ Registration tax for agricultural a/c capped at $500

History of Flight Property Tax 1945 Regulatory Statutes enacted at 40% of value % lowered to 33.3% of value 1976 Exempted a/c weighing less than 30,000 pounds 1987 Schedule of ratios replaced percentage ratio. Revenue yield specified by statute, rather than the statewide average property tax mill rate Revenue yield changed to property tax portion of the State Airports Fund.

State Airport Fund Shift in Revenue since Aircraft Property Tax42%46.549%37.719%46.369% Aircraft Registration Tax12%27.289%39.392%33.133% Aviation Fuel Tax46%20.160%16.718%18.458% Interest6.004%6.554%2.039%

Revenue streams have shifted over the years: Flight Property Tax$2.2M42%$7,800,00045/9% Aircraft Registration$0.6M12%$5,705, % Aviation Fuel Tax$2.4M46%$3,470, %

Aviation Fuel Tax Enacted 1945 Aviation Fuel Tax 4 cents/gallon up to 50,000 gal. 2 cents/gallon above 50,000 to 150,000 gal. 1 cent/gallon above 150,000 to 200,000 gal. ½ cent/gallon above 200,000 gallons. * In 1951, the 4 cents/gallon bracket increased one cent to 5 cents/gallon. FY 2012 Revenue Generated $3,470,000 * In January 2008, the MN Dept. of Revenue reported the effective fuel tax rate on aviation fuel is approximately $ per gallon.

Current A/C Registration Tax on $5,000,000 Aircraft or MGTOW of 12,500 lbs. YearNorth DakotaIowaMinnesota 1 st $300$5,000$50,000 2 nd $270$5,000$45,000 3 rd $240$5,000$37,000 4 th $210$5,000$30,000 5 th $180$5,000$22,500 6 th $150$5,000$15,000 7 th $150$5,000$12,500 Total$1,500$35,000$212,500

Current A/C Registration Tax on $20,000,000 Aircraft or MGTOW of 35,000 lbs. YearNorth DakotaIowaMinnesota 1 st $900$5,000$200,000 2 nd $810$5,000$180,000 3 rd $720$5,000$150,000 4 th $630$5,000$120,000 5 th $540$5,000$90,000 6 th $450$5,000$60,000 7 th $450$5,000$50,000 Total$4,500$35,000$850,000

FY12 and Projected FY14 Revenue Total Fuel Consumption = 330,000,000 gallons Commercial fuel burned = 316,800,000 gallons (96%) Business fuel burned = 13,200,000 gallons (4%)

2014 A/C Registration Tax on $20,000,000 Aircraft or MGTOW of 35,000 lbs. YearNorth DakotaIowaMinnesota 1 st $900$5,000$15,000 2 nd $810$5,000$15,000 3 rd $720$5,000$15,000 4 th $630$5,000$15,000 5 th $540$5,000$15,000 6 th $450$5,000$15,000 7 th $450$5,000$15,000 Total$4,500$35,000$105,000