Senate File 1027, presented by Senator Hauschild, would allow a 50% property-tax exemption for certain leased airport property in Minnesota cities with populations between 50,000 and 150,000 for a 10-year period. The Taxes Committee heard testimony Feb. 19 and laid the bill over for inclusion in the omnibus tax bill.

Senator Hauschild said businesses that operate on airport property lease rather than own land, pay fees to airport authorities for services such as snow removal, and also pay property taxes; he characterized that as a kind of “double tax” for lessees and argued a partial exemption would help regional economic development. He said the bill targets airports that are not owned or operated by the Metropolitan Airports Commission and that the provision would apply to Duluth, St. Cloud and Rochester.

Tom Werner, executive director of the Duluth Airport Authority, testified the airport cluster in Duluth produces substantial economic activity and supports thousands of jobs: “The aviation cluster centered around the Duluth International Airport produces 1,400,000,000.0 in annual economic impact and supports over 4,000 jobs, direct indirect and induced annually,” Werner said. He described the exemption as “another tool in the economic development toolkit” to attract and retain aviation businesses and to reduce reliance on state aeronautics funds.

Dante Tomassoni, director of corporate affairs for Cirrus Aircraft, also testified in support. Tomassoni said Cirrus employs more than 1,700 people in Minnesota, works with more than 100 suppliers in the state and that airport property rules—where land cannot be privately owned—can disincentivize investment. He said the exemption would help develop airport infrastructure and support growth in aircraft manufacturing, maintenance and sustainable aviation fuel infrastructure.

Committee members asked technical questions about the bill’s language and its targeted population band. The chair accepted testimony and laid Senate File 1027 over for omnibus consideration; the hearing record included a modest general fund impact in the revenue estimate, per committee materials.