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Last Updated: 12/28/2016

Assessment Methods

​The department estimates the market value of all flight property operated or used by airline companies in air commerce in this state.

Unless otherwise petitioned, the flight property value apportioned to Minnesota is the total of the following:

  • one-third of the percentage that the airline company’s total tonnage of inbound and outbound passengers, express and freight within Minnesota during the year is of the total of such tonnage everywhere for the same year,
  • one-third of the percentage that, in equated plane hours, the total time of all the airline company’s aircraft in flight in Minnesota is of the total of such time in flight everywhere, and
  • one-third of the percentage that the number of revenue ton miles of passengers, mail, express and freight flown by the airline within Minnesota is of the total number of such miles flown everywhere by the airline.

Tax Capacity

The tax capacity for flight property is 70 percent of the value, and 40 percent of value for quiet aircraft, which includes turboprops and aircraft defined as stage III by the Federal Aeronautics Administration. However, you may be eligible to reduce the rate by half if the airline meets the following two qualifications:

  1. a majority of the aircraft operated by the airline must be turboprops, and

  2. the airline must provide passenger service in six or more months during the year to three or more airports anywhere that serve small or medium sized communities. A small or medium sized community is a home rule charter or statutory city or town in Minnesota with a population of 100,000 or fewer that is not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott or Washington counties.

Tax Levy

The airline flight property tax is a levy based tax. The levy is established by the Minnesota Department of Transportation for the State Airport Fund. Each airline company pays a portion of the levy based on the market value of their flight property.
 
Note: An increase in your tax capacity order does not necessarily mean your tax liability will increase. 
  

Tax Rate

 

The tax rate used to determine the tax due is calculated by dividing the levy against the total tax capacities of all airlines companies assessed for the airline flight property tax.
 
                                                                     Tax Levy / Total Tax Capacities = Tax Rate

 

Example

 

Example 1 Example 2 Example 3
Levy ​$7,000,000 ​$8,000,000 ​$8,000,000
Total Tax Capacities ​$400,000,000 ​$400,000,000 ​$500,000,000
Tax Rate ​1.75% ​2.00% ​1.60%
ABC Air Tax Capacity ​$50,000 ​$50,000 ​$55,000
Tax Liability ​$875 ​$1,000 ​$880
 

 

View the statutes: Minnesota Statutes 270.074 - 270.075