Minnesota eases registration requirements for sUAS owners

by Michael Johnson
Published in Midwest Flyer Magazine June/July 2022 Digital Issue

The Minnesota Department of Transportation’s Office of Aeronautics is responsible for collecting aircraft registration, sales and use taxes as required by law. Of the 7,877 total aircraft registered in Minnesota in fiscal year 2021, 1,099 are small, unmanned aircraft systems (sUAS).

New legislation for sUAS registration went into effect August 1, 2021. Registration of sUAS used for anything other than recreational purposes is now $25.00. New sUAS registrations applied for on or after August 1, 2021, or renewing June 30, 2022, will pay the new, lower $25 annual registration fee, and are exempt from the $100 aircraft registration tax. There are no refunds or discounts for sUAS registration tax that was due prior to August 1, 2021, and penalties still apply for late registration tax payments that were due prior to August 1, 2021.

The Minnesota Legislature also significantly altered the requirements of sUAS owners and expanded the role MnDOT holds related to sUAS. A sUAS is now defined as an aircraft weighing less than 55 pounds that does not require human intervention from within or on the aircraft for it to operate. A sUAS is not limited to the vehicle and now also refers to all elements for sUAS operation. Specifically, Minn. Stat. §360.013 subd. 57(b) identifies “associated elements,” such as the controls and the communication link itself, as being a regulated component of the sUAS.

There has also been a change to the insurance requirements for all sUAS. Recreational sUAS are no longer required to register with the State of Minnesota through MnDOT, nor provide proof of insurance to MnDOT. All commercial aircraft, including commercial sUAS, must be covered by liability insurance. The new legislation that went into effect August 1, 2021, requires that commercial sUAS owners show proof of insurability at the time of registration and issuance of a Commercial Operations License. Commercial sUAS owners no longer need to provide certificates of insurance to MnDOT and insurance does not need to be continuous nor include cancellation clauses. Commercial owners must retain insurance records for each flight as MnDOT may audit records. Any sUAS owner may elect to remove/reinstate their insurance at any time, provided they obtain coverage for all flights. Commercial owners do not need to notify MnDOT when changing providers.

Finally, Minn. Stat. §360.012 now requires local units of government to notify MnDOT when they adopt a resolution affecting the operation of an unmanned aircraft. Political subdivisions are also required to allow the MnDOT commissioner to review proposed ordinances affecting those same aircraft.

Aircraft purchased in the State of Minnesota are subject to sales tax. Most of the aircraft sales and use tax is deposited into the State Airports Fund. The State Airports Fund contains money appropriated to it, or directed to be paid into it, by the legislature including aviation taxes: Aircraft Sales and Use Tax, Aircraft Registration Tax, Aviation Jet Fuel, Special Fuel Excise Tax, Airline Flight Property Tax, and Aviation Gasoline Excise Tax. The fund is paid out on authorization of the commissioner of transportation and used to:
• Acquire, construct, improve, maintain, and operate airports and other air navigation facilities.
• Assist municipalities in the acquisition, construction, improvement and maintenance of airports and other air navigation facilities.
• Assist municipalities to initiate, enhance and market scheduled air service at airports.
• Promote interest and safety in aeronautics through education and information.
• Pay MnDOT salaries and expenses for work related to aeronautic planning, administration, and operation.

With the annual fee for sUAS reduced to $25 and smaller insurance requirements, it is easier than ever to register all of your sUAS online and pay your aircraft registration tax and Minnesota sales and use tax if applicable. MnDOT encourages you to register all of your sUAS today. https://www.dot.state.mn.us/aero/aircraftregistration/index.html

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