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Senate Approves Clarification on Aircraft Taxation, Moves Privately Owned Charter Aircraft to County Assessment
Summary
Senate Bill 157 reclassifies privately owned aircraft used by air charter companies from central assessment to county assessment, with a sponsor amendment to prevent ownership‑shifting; sponsor said the change is intended to clarify tax forms and is expected to be revenue‑neutral overall.
Senate Bill 157, presented by Senator Madsen, clarifies taxation and registration of aircraft used by charter companies. The measure moves privately owned aircraft that operate under an air charter service out of central assessment and into county assessment, and includes an amendment to prohibit charter subsidiaries or commonly owned entities from exploiting a loophole to gain favorable treatment.
Sponsor Madsen told the Senate the change provides clarity for air‑charter firms and the Tax Commission. He said the shift could create a slight statewide tax increase (the fiscal note referenced a potential $126,000 statewide effect), but emphasized that revenues from the new county assessments would be deposited into a restricted aeronautics fund intended for airport support. He noted the effective tax rate comparison suggests owners will be held largely harmless — the registration fee for charter aircraft would be stated in the bill as 0.25% of average wholesale value.
Senators asked whether counties could divert new revenue away from airport maintenance; the sponsor said the bill assures money will flow into a dedicated aeronautics account for airport use. After amendment and committee adjustments, the bill was placed on the third reading calendar.
