Minnesota Aircraft Taxes

Kristin

Kristin

Pattern Altitude
Joined
Dec 1, 2013
Messages
1,610
Location
Twin Cities
Display Name
Display name:
Kristin (The Aviatrix)
What is the aircraft ownership gouge by the State of Minnesota? Any personal property tax on aircraft or hangar? I understand there is a registration fee. I haven't been able to figure out how much that is, or exactly what it is based on. Any Minnesotan who can enlighten me?
 
Don't want to pry, but are you and Twin Comanche moving south?
 
flyingron said:
They did away with personal property taxes in Minnesnota in the 60's.

If you didn't pay Michigan tax on the plane when you bought it, you owe the state (and possibly local) use tax.

https://www.dot.state.mn.us/aero/aircraftregistration/index.html
Click to expand...

That is probably good news as long as they don't have a special something for airplane hangars.

I didn't pay Michigan anything as I didn't live in Michigan when I bought my plane. As I have had the plane for 13 years, I don't think I own any sales or use tax if I move to Minnesota.
 
4c(7) Certain leased or privately owned noncommercial aircraft storage hangar (including land)
Leased or privately owned noncommercial aircraft storage hangars that are not exempt under Minnesota Statutes, Section 272.01, subdivision 2, and the land on which they are located qualifies to be classified as 4c(7) property if:

  • The land is an airport owned or operated by a city, town, county, metropolitan airports commission or group thereof; and
  • The land lease, or any ordinance or signed agreement restricting the use of the leased premise, prohibits commercial activity performed at the hangar.
Note: if the hangar is located on land at an airport owned or operated by a town or city with a population of 50,000 or less and it is leased by an aviation – related business, it is exempt under section 272.01, even if that business is conducted for profit. If that same hangar is leased by an individual to store his personal plane, it is also exempt.

4c(8) Certain privately owned noncommercial aircraft storage hangars on private land (including land)
Privately owned noncommercial aircraft storage hangars and the land on which they are located qualifies to be classified as
4c(8) property if:

  • the land abuts a public airport; and
  • the owner of the aircraft storage hangar provides the assessor with a signed agreement restricting the use of the premises, prohibiting commercial use or activity performed at the hangar.
Note: The exemption provided in section 272.01, subdivision 2, paragraph (b)(2) for aviation – related businesses in towns and small cities DOES NOT apply to property leased from a private individual to conduct aviation – related business.

For the current assessment year, class 4c(8) property has a class rate of 1.5 percent

A bill of sale must be filed with the assessor by the new owner of any hangar classified under this clause within 60 days of the sale.

For the current assessment year, class 4c(7) property has a class rate of 1.5 percent.
 
NealRomeoGolf said:
4c(7) Certain leased or privately owned noncommercial aircraft storage hangar (including land)
Leased or privately owned noncommercial aircraft storage hangars that are not exempt under Minnesota Statutes, Section 272.01, subdivision 2, and the land on which they are located qualifies to be classified as 4c(7) property if:

  • The land is an airport owned or operated by a city, town, county, metropolitan airports commission or group thereof; and
  • The land lease, or any ordinance or signed agreement restricting the use of the leased premise, prohibits commercial activity performed at the hangar.
Note: if the hangar is located on land at an airport owned or operated by a town or city with a population of 50,000 or less and it is leased by an aviation – related business, it is exempt under section 272.01, even if that business is conducted for profit. If that same hangar is leased by an individual to store his personal plane, it is also exempt.

4c(8) Certain privately owned noncommercial aircraft storage hangars on private land (including land)
Privately owned noncommercial aircraft storage hangars and the land on which they are located qualifies to be classified as
4c(8) property if:

  • the land abuts a public airport; and
  • the owner of the aircraft storage hangar provides the assessor with a signed agreement restricting the use of the premises, prohibiting commercial use or activity performed at the hangar.
Note: The exemption provided in section 272.01, subdivision 2, paragraph (b)(2) for aviation – related businesses in towns and small cities DOES NOT apply to property leased from a private individual to conduct aviation – related business.


Thank you! That is helpful. It sounds like I would likely pay 1.5% of some amount, presumably the lease rate as a renter.

For the current assessment year, class 4c(8) property has a class rate of 1.5 percent

A bill of sale must be filed with the assessor by the new owner of any hangar classified under this clause within 60 days of the sale.

For the current assessment year, class 4c(7) property has a class rate of 1.5 percent.
Click to expand...
 
Kristin said:
Thanks! That answers the registration fee question. Still wondering how they tax hangars that one rents or owns.
Click to expand...

I don't recall being charged a tax on the rental. It was a straight $75 to the city. May be different for privately owned hangars.
 
You must log in or register to reply here.
Back
Top