VT S0246

Expands the existing sales and use tax exemption for commercial aircraft to include all noncommercial aircraft (excluding drones), while maintaining the exemption for aircraft parts, machinery, and equipment

Creates a property tax exemption for noncommercial aircraft that are not used primarily for commercial passenger or freight transport operations

Requires the Commissioner of Taxes and Agency of Transportation to study the feasibility of sharing sales, use, and property tax revenues generated through air commerce with Vermont airports

Study report due to legislative committees by December 15, 2026, must address revenue tracking capacity, dedicated airport fund administration, current airport-generated tax estimates, and compliance with federal law (49 U.S.C. § 47133)

Effective date: July 1, 2026