Bill > SF1027

This bill modifies property tax exemption rules for airport properties, specifically addressing how certain airport-owned or airport-related properties are taxed when used by private entities. The bill changes existing law to expand tax exemptions for airport properties used for aviation-related purposes, with particular nuance for cities with populations between 50,000 and 150,000 residents. Specifically, the bill allows tax exemptions for properties used as hangars for aircraft storage, repair, or manufacture, and for providing aviation services, but creates new exceptions for airports in larger cities like those operated by the Metropolitan Airports Commission. For airports in cities with 50,000 to 150,000 residents, the bill introduces a phased tax reduction, where such airport properties will have their net tax capacity reduced by 50% for property taxes payable from 2026 through 2037. This means these airport properties will receive a significant tax break, potentially encouraging airport development and aviation-related business activity. The changes are designed to provide more flexible and potentially beneficial tax treatment for airport properties, balancing municipal revenue needs with supporting aviation infrastructure and related businesses. The bill will take effect for property taxes payable beginning in 2026.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1027&ssn=0&y=2025