The Minnesota State Legislature has introduced House Bill 2438, aimed at revising the taxation and registration processes for antique and classic aircraft. Introduced on April 21, 2025, the bill seeks to streamline the registration for aircraft that are primarily owned as collector's items, thereby addressing concerns from aviation enthusiasts and collectors regarding the financial burden of traditional registration fees.

Key provisions of the bill define "classic aircraft" as those constructed after January 1, 1946, with a first year of life that predates the registration date by at least 50 years. Owners of such aircraft can register them as collector's items by submitting a sworn affidavit, which includes details about the aircraft and its ownership. This registration process requires an annual fee of $25 and is valid for one year, provided the aircraft is not used for general transportation or commercial purposes.

Notably, the bill includes stipulations that if the aircraft is operated outside of the collector's item designation, the registration becomes void, necessitating compliance with standard taxation and registration laws. Additionally, upon the sale of an antique or classic aircraft, the new owner must register the aircraft under the same provisions, including a $5 transfer fee.

The introduction of House Bill 2438 has sparked discussions among lawmakers and stakeholders in the aviation community. Supporters argue that the bill will encourage the preservation of aviation history and support hobbyists by reducing financial barriers. However, some critics express concerns about potential misuse of the collector's item designation, fearing it could lead to tax evasion if aircraft are used for commercial purposes while still registered as collector's items.

The implications of this bill extend beyond aviation enthusiasts; it reflects broader trends in tax policy and regulation, particularly in how states manage the taxation of recreational vehicles. As the bill progresses through the legislative process, its potential impact on the aviation sector and state revenue will be closely monitored. The next steps will involve committee reviews and potential amendments before a final vote in the legislature.