SF 5091
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/15/2026 08:43 a.m.
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A bill for an act
relating to taxation; sales and use; repealing certain exemptions; making changes
to deposit of revenues; making conforming changes; amending Minnesota Statutes
2024, section 297A.82, subdivision 7, by adding a subdivision; repealing Minnesota
Statutes 2024, section 297A.82, subdivisions 4, 4a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 297A.82, is amended by adding a subdivision
to read:
new text begin Subd. 4b. new text end
new text begin Deposit of revenues. new text end
new text begin
Tax revenue, including interest and penalties, collected
from the sale or purchase of an aircraft taxable under this chapter must be deposited in the
state treasury and credited to the commissioner of education for the uses allowed under
section 126C.44, subdivision 4, paragraph (a), clauses (2), (5), (6), (8), and (9). For purposes
of this subdivision, "revenue" does not include the revenue, including interest and penalties,
generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be
deposited as provided under the Minnesota Constitution, article XI, section 15.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2026.
new text end
Sec. 2.
Minnesota Statutes 2024, section 297A.82, subdivision 7, is amended to read:
Subd. 7.
Agreement with commissioner of transportation.
Notwithstanding
subdivisions 1 to deleted text begin 4deleted text end new text begin 3new text end , the commissioner may enter into an agreement with the commissioner
of transportation whereby, upon approval of both commissioners, the commissioner of
transportation will collect the sales tax on aircraft from persons required to register or license
aircraft in this state. For purposes of collecting the tax, the commissioner of transportation
shall act as agent of the commissioner of revenue and shall be subject to all rules not
inconsistent with the provisions of this chapter, that may be prescribed by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2026.
new text end
Sec. 3. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, section 297A.82, subdivisions 4 and 4a,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2026.
new text end
APPENDIX
Repealed Minnesota Statutes: 26-08010
297A.82 AIRCRAFT; FLIGHT EQUIPMENT; PAYMENT OF TAXES; EXEMPTIONS.
Subd. 4.
Exemptions.
(a) The following transactions are exempt from the tax imposed in this chapter to the extent provided.
(b) The purchase or use of aircraft previously registered in Minnesota by a corporation or partnership is exempt if the transfer constitutes a transfer within the meaning of section 351 or 721 of the Internal Revenue Code.
(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of an aircraft for which a commercial use permit has been issued pursuant to section 360.654 is exempt, if the aircraft is resold while the permit is in effect.
(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and maintenance of such air flight equipment, and flight simulators, but does not include aircraft with a maximum takeoff weight of less than 30,000 pounds.
(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in section 360.511 and approved by the Federal Aviation Administration, and which the seller delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter returned to a point within Minnesota, except in the course of interstate commerce or isolated and occasional use, and will be registered in another state or country upon its removal from Minnesota. This exemption applies even if the purchaser takes possession of the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes for a period not to exceed ten days prior to removing the aircraft from this state.
(f) The sale or purchase of the following items that relate to aircraft operated under Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: equipment and parts necessary for repair and maintenance of aircraft; and equipment and parts to upgrade and improve aircraft.
Subd. 4a.
Deposit in state airports fund.
Tax revenue, including interest and penalties, collected from the sale or purchase of an aircraft taxable under this chapter must be deposited in the state airports fund established in section 360.017. For purposes of this subdivision, "revenue" does not include the revenue, including interest and penalties, generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as provided under article XI, section 15, of the Minnesota Constitution.