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Bills would lower tax on auto fuel used in aircraft

Legislation introduced in both houses of the Minnesota Legislature would tax automobile fuel used in approved aircraft at the same rate as aviation fuel, reducing the tax burden on aircraft operators and increasing aviation’s share of fuel-tax revenue.

AOPA supports Senate File 269 and House File 594 to tax auto gas used in aircraft at five cents per gallon instead of the current rate of 28.5 cents per gallon, the rate levied for auto fuel’s traditional over-the-road use.

"This legislation addresses a problem experienced by several hundred users of ‘mogas’ at Minnesota airports," said Bryan Budds, AOPA Great Lakes regional manager. "By passing this legislation, Minnesota would ensure that all revenue gained from the sale of aviation fuels is reinvested in the airport system that collected it, while also addressing the issue of automobile gas used in aircraft being taxed currently at a much higher rate."

The Senate measure was approved by the Senate Transportation Policy and Public Safety Committee on Feb. 19. The House bill will be considered by the House Transportation Policy and Finance Committee. 

The bills have the backing of the Minnesota Business Aviation Association and the Minnesota Council of Airports. AOPA will be present in the state capital, St. Paul, to urge passage of the tax rate change, Budds said.

"With this additional funding, the state airport fund will be better suited to provide state grants for airport projects and provide state matching funds for Federal Aviation Administration Airport Improvement grants and in turn will strengthen the $2.9 billion annual economic impact of general aviation in Minnesota," Budds wrote in a letter to Sen. Scott Dibble (DFL-District 61), chair of the Senate Transportation Policy and Public Safety Committee on behalf of the more than 7,400 AOPA members in Minnesota.

Dan Namowitz
Dan Namowitz
Dan Namowitz has been writing for AOPA in a variety of capacities since 1991. He has been a flight instructor since 1990 and is a 35-year AOPA member.
Topics: Advocacy, Taxes, Financial

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