AIRCRAFT REGISTRATION FEE; INCREASE S.B. 1165:
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 1165 (as reported without amendment)
Sponsor: Senator Sarah E. Anthony
CONTENT
The bill would amend the Aeronautics Code to increase the registration fee for aircraft.
Under the Code, an aircraft tied down, moored, hangared, or based in Michigan must be registered annually with the Aeronautics Commission, along with the number assigned to that aircraft by the Federal Aviation Administration (FAA), and a registration fee paid. Currently, the fee is calculated as one cent per pound of either maximum gross weight or maximum takeoff weight, whichever is greater. The bill would increase the fee to five cents per pound of either maximum gross weight or maximum takeoff weight, whichever was greater. The bill also would eliminate a provision that prohibits aircraft from registering in the State without a valid and effective registration certificate from either the FAA or a foreign government.
FISCAL IMPACT
The bill would have a positive fiscal impact on the State and no fiscal impact on local units of government. It would increase the registration fee for aircraft from one cent per pound to five cents per pound, which would increase revenue for the Michigan Department of Transportation by an estimated $1.1 million. Revenue from the aircraft registration fee is dedicated to the State Aeronautics Fund (SAF). This analysis assumes that the tax will be in effect for the full fiscal year. If not enacted for the full fiscal year the amount will be lower by approximately $92,600 per month, assuming registration is evenly spread across the year.
Date Completed: 12-5-24 Fiscal Analyst: Bobby Canell
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.