MN HF811

Increases jet fuel and special fuel excise tax from a variable rate to 15 cents per gallon, with a reduced rate of 5 cents per gallon for airline companies required to pay air flight property tax under section 270.072.

Eliminates refundability of the 15-cent jet fuel excise tax imposed under the amended section 296A.09, subdivision 2, while maintaining graduated refund eligibility for other aviation fuels.

Replaces the one percent aircraft registration tax with a tiered tax structure based on aircraft base price, ranging from $100 for aircraft priced under $500,000 to $75,000 for aircraft priced at $40,000,000 and over.

Adds exemption from sales tax for airflight equipment, parts, and upgrades for aircraft operated under Federal Aviation Regulations parts 91 and 135, and directs aircraft sales tax revenue to the state airports fund.

Requires the Commissioner of Transportation to submit a report by June 30, 2016, and every four years thereafter, detailing aviation tax revenues, fund expenditures, and recommended statutory changes to ensure adequate state airports funding.