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Last Updated: 5/11/2018

Assessment Methods

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

The flight property value apportioned to Minnesota is the total of the following:

  • One-half of revenue ton miles flown in Minnesota divided by revenue ton miles flown throughout the company’s system during the previous calendar year.
  • One-half of departures performed in Minnesota divided by total departures throughout the company’s system during the previous calendar year.

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 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