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Senate advances aviation package: cuts to airplane property tax, new registration fees and fuel tax increase debated and moved forward
Summary
A package of aviation bills was debated at length: sponsors proposed phased reductions to airplane property tax, higher registration fees for larger aircraft, and targeted increases in general‑aviation fuel tax to fund runway maintenance. Amendments were adopted and the bills were moved to the third‑reading calendar or the top of the third‑reading list.
Senator Hilliard led a multi‑bill floor presentation on aviation funding, calling attention to maintenance needs across Utah’s approximately 50 local airports and arguing that current taxation discourages registration and aviation‑related business activity in the state. "What's Senate Bill 139 does is, first of all, it takes the property tax, which is currently 1%, and it reduces it by 2 tenths of a percent a year for 3 years," Hilliard said, describing the phased property‑tax reductions.
Hilliard and others explained a complementary plan to increase registration fees (scaled by aircraft weight) and to raise the gasoline/fuel tax on general aviation over three years (two cents then two cents then one cent), with the revenue directed to a statewide aeronautics fund for airport runway and facility maintenance. The sponsor said the combined package — with appropriations requests and an expectation of matching federal funds — would begin to address an estimated $6 million immediate need for airport upkeep.
Floor discussion included concerns about lost school district revenue from lower property tax collections; Hilliard and supporters estimated the statewide school impact would be small (for example, about $60,000 to Salt Lake School District at certain scenarios) and said the fuel‑tax and registration changes would partially offset property tax reductions. The Senate considered several amendments (including provisions clarifying treatment of crop‑spray planes and proration for midyear registrations) and voted on the bills. The votes on the package carried on the floor (SB139 reported passed the third‑reading calendar by voice as recorded; SB132 passed to the third‑reading calendar with recorded tallies). Senator Hilliard and backers said they would continue to work on funding levels before final action.
