MN SF1027

Expands property tax exemptions for publicly-owned airport property to include hangars used for aircraft manufacture (in addition to existing exemptions for storage and repair), and adds facilities providing aviation goods, services, or facilities to the public

Creates a new 50% property tax reduction for certain mid-sized city airports (populations between 50,000 and 150,000) that are not operated by the Metropolitan Airports Commission, applicable to taxes payable 2026 through 2037

The 50% tax reduction applies to hangars used for aircraft storage, repair, or manufacture, aviation service facilities, and passenger terminal areas (check-in, ticket counters, boarding areas, luggage claim)

Reorganizes existing exemption limitations into a separate paragraph, clarifying that exemptions still do not apply to Metropolitan Airports Commission properties, airports in cities over 50,000 population, or non-aviation business uses

Effective beginning with property taxes payable in 2026