Bill
SB 1165
Michigan aircraft registration fees rise to 5 cents per pound, increasing revenue for the State Aeronautics Fund and removing the FAA/foreign registration prerequisite for Michigan
Status / Sponsors
- Bill number: SB 1165 (amends 1945 PA 327, secs. 76 & 77; MCL 259.76 & 259.77)
- Sponsor (Senate): Senator Sarah E. Anthony (introduced Dec. 3, 2024)
- Current referral: Committee on Tax Policy (per provided status)
- Related: companion bill HB 373
Purpose / Intent
- Increase the annual state registration fee for aircraft based in Michigan to raise revenue for the State Aeronautics Fund (SAF) administered by the Michigan Department of Transportation (MDOT), and to remove a statutory restriction that currently prevents issuance of a Michigan registration certificate unless an aircraft already holds a valid FAA or foreign registration certificate.
Key provisions
- Fee increase: changes the aircraft registration fee from 1 cent ($0.01) per pound to 5 cents ($0.05) per pound of whichever is greater — maximum gross weight or maximum takeoff weight as certified on the FAA airworthiness certificate (MCL 259.77(5)).
- Example: a 4,000‑lb airplane would pay $40 under current law; under the bill it would pay $200.
- Removes a provision that prohibits issuance of a Michigan registration certificate when the aircraft does not have a “valid and effective” registration certificate from the FAA or a foreign government (amendment to MCL 259.76(1)).
- Retains other registration mechanics:
- Annual registration due on or before Dec. 31; first-time registrations issued after July 1 are charged 50% of the annual fee.
- Registrations expire Jan. 1 each year.
- Registration fee remains in lieu of all aircraft property taxes.
- Penalties for late payment remain: $50 if late up to 1 month, then $5 for each additional month (up to 1 year); postmark counts as payment date; commission may waive penalties for reasonable cause.
Who is affected
- Primary: owners of aircraft that are tied down, moored, hangared, or based in Michigan (private and general aviation operators).
- Exemptions maintained: scheduled passenger service operating exclusively under 14 CFR Part 121, U.S. government aircraft, Civil Air Patrol, aircraft registered to another state and operating in Michigan ≤ 90 days (subject to conditions), and foreign‑licensed aircraft/reciprocals where the statute already provided exemptions.
Fiscal impact
- Estimated state revenue increase: approximately $1.1 million annually directed to the State Aeronautics Fund (SAF).
- Assumes the higher fee is in effect for the full fiscal year; if not, estimated reduction of about $92,600 per month for each month not in effect (assumes even spread of registrations through the year).
- No fiscal impact on local governments (registration continues to be in lieu of property taxes).
Procedural / Timeline highlights
- Introduced in Senate Dec. 3, 2024; reported favorably in committee (committee reports dated Dec. 5 and Dec. 10, 2024); recorded as passed by the Senate Dec. 11, 2024 in some records. As provided in the brief, the bill is currently referred to the Committee on Tax Policy for further consideration.
Implications to watch
- Administrative: MDOT/Aeronautics Commission will collect higher fees and administer any changes in registration procedures resulting from removal of the FAA/foreign registration prerequisite.
- Regulatory/operational: removal of the FAA/foreign registration requirement may allow state registration when federal/foreign registration is not present — potential legal, safety, or enforcement considerations for state registration practice.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
