Committee passes two property-tax bills after amendments; airport exemption and personal property exemptions debated

The Committee on Taxation voted to advance two bills dealing with property-tax exemptions, taking recorded and division votes on separate amendments to Senate Bill 10 before passing both bills out of committee.

Senate Bill 117: airport property tax exemption Senate Bill 117 clarifies and expands an existing property tax exemption for the Schroderfield Airport. The reviser explained the bill would clarify that property owned by the political subdivisions that comprise the Schroderfield Airport Commission and depicted on the airports federally approved airport layout plan would qualify for exemption whether used for aviation-related purposes, to promote aviation commerce or to provide revenue to operate the airport.

Representative Sawyer moved the bill out favorably; Representative Francis seconded. The committee voted in favor by voice vote and the motion carried.

Senate Bill 10: personal property exemptions, aircraft debate, and final passage Senate Bill 10 would exempt certain personal property from personal property taxation beginning with tax year 2026, including items such as off-road vehicles, motorized bicycles, electric-assist devices, certain trailers (gross weight 15,000 pounds or less used exclusively for personal use), marine equipment, and aircraft as introduced. The reviser read a broad definition of "watercraft" from the bills language.

A conceptual amendment by Representative Hsu to remove aircraft from the bill passed after a requested division and count: the committee recorded the amendment vote at 11 in favor and 8 opposed, carrying the amendment to strike aircraft from the exemption. During discussion members raised concerns that many aircraft already qualify for exemptions (commercial, business aircraft, homebuilt or antique aircraft) and that adding aircraft to the exemption would meaningfully drive the fiscal impact.

Representative Stogsdale later offered a conceptual amendment to exclude watercraft from the exemptions; that amendment failed on division, with 9 in favor and 11 opposed. Department of Revenue testimony during the debate said aircraft accounted for about 78% of the bills total fiscal impact and watercraft about 22 percent. Department staff said the total amount of property tax on watercraft in recent years was just over $4.1 million; the department did not have a detailed split immediately available for all state and local mill components.

The Department of Revenue provided a fiscal summary for the bill as introduced: an estimated state impact of roughly $2.5 million to the 20-mill state general fund and about $190,000 to state building funds; committee discussion attributed most of the bills fiscal impact to aircraft. A committee member noted a prior fiscal figure of about $17 million in local impacts and asked staff to confirm details; department staff clarified the breakdown during debate.

After debate and the amendments described above, Representative Kessler moved the committee to pass SB 10 favorably as amended; Representative Butler seconded. The committee voice-voted to advance SB 10 as amended and the motion carried.

Why it matters: The aircraft amendment materially changed the bills fiscal footprint; Department of Revenue testimony attributed the majority of the bills fiscal impact to aircraft, which drove the committee to remove aircraft from the exemption package. Watercraft remained included after the committee defeated the amendment to exclude them.