Iowa Senate Bill SF2266

Iowa 2023-2024 Regular Session

• Introduced: 2/8/24
• Refer: 2/15/24

Caption

A bill for an act relating to annual aircraft registration fees, and making appropriations.(Formerly SF 2070.)

Impact

The proposed adjustments in SF2266 are set to generate additional revenue for the state aviation fund, which is vital for funding various aviation-related projects. A significant portion of the fees collected will be allocated to the Department of Transportation (DOT) for awarding grants aimed at improving vertical infrastructure at both commercial and general aviation airports. Specifically, 4.5 percent of the moneys from annual registration fees is earmarked for commercial service projects, while 1.5 percent is designated for general aviation airport infrastructure improvements. This financial restructuring aims to ensure sustained investment in Iowa's aviation sector and enhance airport facilities, which could improve transportation logistics across the state.

Summary

Senate File 2266 addresses annual aircraft registration fees in Iowa and proposes adjustments to the existing fee structure. The bill suggests increasing the first-year registration fee from 1 percent to 1.5 percent of the aircraft's manufacturer list price, with a cap raised from $5,000 to $7,000. It also alters the subsequent years' fee reductions, modifying the rate decrease to .375 percent after the first year until it stabilizes at that amount for the fourth and further registration years. Furthermore, the minimum registration fee is suggested to increase from $35 to $100. These changes signify a more substantial financial commitment for aircraft owners when registering their planes annually.

Contention

While supporters of SF2266 may argue that these increases in registration fees are necessary for upgrading and maintaining aviation infrastructure, there may also be significant contention surrounding the raised costs for aircraft owners. Critics could view the heightened financial burden on small aircraft operators and recreational pilots as excessive and potentially discouraging for new aviation ventures in Iowa. Furthermore, the framework for the grants awarded—unlike prior limitations that required a certain percentage contribution from airports—may spark debate over how effectively and equitably these funds will be utilized. Overall, these discussions may revolve around balancing the benefits of enhanced infrastructure against the costs imposed on individuals and businesses operating within this sector.