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Legislative Updates 2019

Iowa Public Airports Association
February 15, 2019

Bill to Fix Aircraft Parts Tax Imbalance Begins to Advance

A House subcommittee has given its unanimous approval to a bill to end the aircraft parts and maintenance sales tax imbalance between Iowa and surrounding states.

House Study Bill 126 eliminates state sales and use tax on aircraft component parts permanently attached to an aircraft, including repair or replacement materials or parts, and repair, remodeling, and maintenance services used on an aircraft, aircraft engine, or aircraft component materials or parts.

The bill is now eligible for consideration by the full House Transportation committee. Once approved by that committee the bill will considered by that chamber’s Ways and Means Committee.

Senate Democrats Lose Member Via Surprise Resignation

Jeff Danielson surprised the Statehouse Thursday when he submitted his resignation from the Iowa Senate.

The Cedar Falls Democrat, who was first elected to the Senate in 2005, sent a short and to the point resignation letter to Senate President Charles Schneider and Speaker of the House Linda Upmeyer. The one sentence letter read “I resign my position as Iowa State Senator immediately.”

No word yet on when the special election to fill the now vacated seat will take place.

Bills of Interest:
SF 275 (formerly SSB 1009) - Threat of A Targeted Attack (F) - This bill establishes the criminal offenses of assault by threat of a targeted attack and cyber harassment, and provides penalties. Specifically the bill provides that any person who threatens to cause serious injury or death to persons assembled in a public place, school building, or any occupied structure other than a single-family residence which thereby places such persons in reasonable apprehension of serious injury or death, or who threatens to commit such an act under circumstances raising a reasonable expectation that the threat will be carried out, commits a class “D” felony.
On Senate debate calendar

SF 266 (formerly SSB 1050) - Aircraft Registration Return (M) - This bill alters certain notice provisions involving the return of an aircraft’s certificate of registration to the department of transportation.
Under current law, if a registered aircraft is destroyed by fire or accident or junked, and its identity as an aircraft entirely eliminated, or the aircraft is removed and continuously used beyond the boundaries of the state, then the owner is required to return the aircraft’s certificate of registration to the DOT within 30 days, provide an affidavit of the destruction, dismantling, or removal, and make a claim for a refund of the registration fee. The bill strikes the requirement that the owner return the aircraft’s certificate of registration to the DOT within 30 days, and instead requires the owner to provide notice to the DOT within 30 days.
On Senate debate calendar

SSB 1040 - Demonstrator Aircraft Registration Loophole Fix (F) - This bill limits the period a manufacturer or dealer may operate the aircraft under a special certificate to three years. The bill increases the annual fee for a special certificate from $100 to $400, and provides that a special certificate expires at midnight on October 31 rather than midnight on June 30. The bill provides that the DOT may refuse to issue, or may revoke or suspend, a special certificate if the person making application for, or holding, the special certificate operated such an aircraft after three years of holding a special certificate for the aircraft in violation of the bill.
Subcommittee: Feenstra, Dawson and Quirmbach

SSB 1039 - UPS-FedEx Taxation Parity (M) - The bill relates to the apportionment of income of an airline and of a qualified air freight forwarder for purposes of the Iowa corporate income tax.
Subcommittee: Feenstra, R Smith and Danielson

HF 390 (formerly HSB 45) - Aircraft Registration Return (M) - This bill alters certain notice provisions involving the return of an aircraft’s certificate of registration to the department of transportation.
Under current law, if a registered aircraft is destroyed by fire or accident or junked, and its identity as an aircraft entirely eliminated, or the aircraft is removed and continuously used beyond the boundaries of the state, then the owner is required to return the aircraft’s certificate of registration to the DOT within 30 days, provide an affidavit of the destruction, dismantling, or removal, and make a claim for a refund of the registration fee. The bill strikes the requirement that the owner return the aircraft’s certificate of registration to the DOT within 30 days, and instead requires the owner to provide notice to the DOT within 30 days.
On House debate calendar

HF 388 (formerly HSB 88) - Demonstrator Aircraft Registration Loophole Fix (F) - This bill limits the period a manufacturer or dealer may operate the aircraft under a special certificate to three years. The bill increases the annual fee for a special certificate from $100 to $400, and provides that a special certificate expires at midnight on October 31 rather than midnight on June 30. The bill provides that the DOT may refuse to issue, or may revoke or suspend, a special certificate if the person making application for, or holding, the special certificate operated such an aircraft
after three years of holding a special certificate for the aircraft in violation of the bill.
On House debate calendar

HSB 155 - Emergency Communications Towers (M) - The bill provides that an authority, or governing body authorized to make decisions relative to a communications tower application, shall not reject an application for the installation of a tower or transmission equipment in the unincorporated area of a county with a population of less than 15,000, except for on certain residential or historical property, upon written confirmation from the chairperson of the statewide interoperable communications system board or the governor’s designated single point-of-contact for the first responder network authority activities in Iowa, or the chairperson’s or point-of-contact designee, that the tower or equipment is intended to be installed and used as part of the state plan approved under specified federal law for the deployment of the nationwide public safety broadband network or radio access network.
Subcommittee: Approved by subcommittee

HSB 126 - Aircraft Parts Tax Exemption (F) - This bill eliminates state sales and use tax on aircraft component parts permanently attached to an aircraft, including repair or replacement materials or parts, and repair, remodeling, and maintenance services used on an aircraft, aircraft engine, or aircraft component materials or parts.
Subcommittee: Approved by subcommittee

Iowa Public Airports Association
February 8, 2019

Loophole Fix Bill Begins To Move Forward

A House subcommittee has given its approval to a bill that will close a loophole in demonstrator aircraft registration law.

House Study 88 bill limits the period a manufacturer or dealer may operate the aircraft under a special certificate to three years. The bill also increases the annual fee for a special certificate from $100 to $400.

The full House Transportation will now consider the bill before it heads to that chamber’s Ways and Means Committee.

SSB 1050 - Aircraft Registration Return (M) - This bill alters certain notice provisions involving the return of an aircraft’s certificate of registration to the department of transportation.
Under current law, if a registered aircraft is destroyed by fire or accident or junked, and its identity as an aircraft entirely eliminated, or the aircraft is removed and continuously used beyond the boundaries of the state, then the owner is required to return the aircraft’s certificate of registration to the DOT within 30 days, provide an affidavit of the destruction, dismantling, or removal, and make a claim for a refund of the registration fee. The bill strikes the requirement that the owner return the aircraft’s certificate of registration to the DOT within 30 days, and instead requires the owner to provide notice to the DOT within 30 days.
Subcommittee: Approved

SSB 1040 - Demonstrator Aircraft Registration Loophole Fix (F) - This bill limits the period a manufacturer or dealer may operate the aircraft under a special certificate to three years. The bill increases the annual fee for a special certificate from $100 to $400, and provides that a special certificate expires at midnight on October 31 rather than midnight on June 30. The bill provides that the DOT may refuse to issue, or may revoke or suspend, a special certificate if the person making application for, or holding, the special certificate operated such an aircraft after three years of holding a special certificate for the aircraft in violation of the bill.
Subcommittee: Feenstra, Dawson and Quirmbach

SSB 1039 - UPS-FedEx Taxation Parity (M) - The bill relates to the apportionment of income of an airline and of a qualified air freight forwarder for purposes of the Iowa corporate income tax.
Subcommittee: Feenstra, R Smith and Danielson

SSB 1009 - Threat of A Targeted Attack (F) - The bill establishes the criminal offense of assault by threat of a targeted attack and provides penalties.
The bill provides that any person who threatens to cause serious injury or death to persons assembled in a public place, school building, or any occupied structure other than a single-family residence which thereby places such persons in reasonable apprehension of serious injury or death, or who threatens to commit such an act under circumstances raising a reasonable expectation that the threat will be carried out, commits a class “D” felony.
Subcommittee: Approved

HSB 126 - Aircraft Parts Tax Exemption (F) - This bill eliminates state sales and use tax on aircraft component parts permanently attached to an aircraft, including repair or replacement materials or parts, and repair, remodeling, and maintenance services used on an aircraft, aircraft engine, or aircraft component materials or parts
Subcommittee: Maxwell, Bossman and Jacoby

HSB 88 - Demonstrator Aircraft Registration Loophole Fix (F) - This bill limits the period a manufacturer or dealer may operate the aircraft under a special certificate to three years. The bill increases the annual fee for a special certificate from $100 to $400, and provides that a special certificate expires at midnight on October 31 rather than midnight on June 30. The bill provides that the DOT may refuse to issue, or may revoke or suspend, a special certificate if the person making application for, or holding, the special certificate operated such an aircraft after three years of holding a special certificate for the aircraft in violation of the bill.
Subcommittee: Approved

HSB 45 - Aircraft Registration Return (M) - This bill alters certain notice provisions involving the return of an aircraft’s certificate of registration to the department of transportation.
Under current law, if a registered aircraft is destroyed by fire or accident or junked, and its identity as an aircraft entirely eliminated, or the aircraft is removed and continuously used beyond the boundaries of the state, then the owner is required to return the aircraft’s certificate of registration to the DOT within 30 days, provide an affidavit of the destruction, dismantling, or removal, and make a claim for a refund of the registration fee. The bill strikes the requirement that the owner return the aircraft’s certificate of registration to the DOT within 30 days, and instead requires the owner to provide notice to the DOT within 30 days.
Subcommittee: Approved

Iowa Public Airports Association
February 1, 2019

Aviation Bills Begin to Fly at the Statehouse

The House and Senate each have a version of two aircraft registration bills for consideration.

SSB 1050 and HSB 45 both change the requirement that the owner return the aircraft’s certificate of registration to the DOT within 30 days, and instead requires the owner to provide notice to the DOT within 30 days.

SSB 1040 and HSB 88 both seek to close a loophole in demonstrator aircraft registration.

Now word yet on when subcommittee meetings will be scheduled for these bills.

SSB 1050 - Aircraft Registration Return (M) - This bill alters certain notice provisions involving the return of an aircraft’s certificate of registration to the department of transportation.
Under current law, if a registered aircraft is destroyed by fire or accident or junked, and its identity as an aircraft entirely eliminated, or the aircraft is removed and continuously used beyond the boundaries of the state, then the owner is required to return the aircraft’s certificate of registration to the DOT within 30 days, provide an affidavit of the destruction, dismantling, or removal, and make a claim for a refund of the registration fee. The bill strikes the requirement that the owner return the aircraft’s certificate of registration to the DOT within 30 days, and instead requires the owner to provide notice to the DOT within 30 days. Subcommittee: Koelker, Lykam and Shipley

SSB 1040 - Demonstrator Aircraft Registration Loophole Fix (F) - This bill limits the period a manufacturer or dealer may operate the aircraft under a special certificate to three years. The bill increases the annual fee for a special certificate from $100 to $400, and provides that a special certificate expires at midnight on October 31 rather than midnight on June 30. The bill provides that the DOT may refuse to issue, or may revoke or suspend, a special certificate if the person making application for, or holding, the special certificate operated such an aircraft after three years of holding a special certificate for the aircraft in violation of the bill.
Subcommittee: Feenstra, Dawson and Quirmbach

SSB 1039 - UPS FedEx Taxation Prarity (M) - The bill relates to the apportionment of income of an airline and of a qualified air freight forwarder for purposes of the Iowa corporate income tax.
Subcommittee: Feenstra, R Smith and Danielson

SSB 1009 - Threat of A Targeted Attack (F) - The bill establishes the criminal offense of assault by threat of a targeted attack and provides penalties.
The bill provides that any person who threatens to cause serious injury or death to persons assembled in a public place, school building, or any occupied structure other than a single-family residence which thereby places such persons in reasonable apprehension of serious injury or death, or who threatens to commit such an act under circumstances raising a reasonable expectation that the threat will be carried out, commits a class “D” felony.
Subcommittee: Approved

HSB 88 - Demonstrator Aircraft Registration Loophole Fix (F) - This bill limits the period a manufacturer or dealer may operate the aircraft under a special certificate to three years. The bill increases the annual fee for a special certificate from $100 to $400, and provides that a special certificate expires at midnight on October 31 rather than midnight on June 30. The bill provides that the DOT may refuse to issue, or may revoke or suspend, a special certificate if the person making application for, or holding, the special certificate operated such an aircraft after three years of holding a special certificate for the aircraft in violation of the bill.
Subcommittee: Maxwell, Sieck and Kurtz

HSB 45 - Aircraft Registration Return (M) - This bill alters certain notice provisions involving the return of an aircraft’s certificate of registration to the department of transportation.
Under current law, if a registered aircraft is destroyed by fire or accident or junked, and its identity as an aircraft entirely eliminated, or the aircraft is removed and continuously used beyond the boundaries of the state, then the owner is required to return the aircraft’s certificate of registration to the DOT within 30 days, provide an affidavit of the destruction, dismantling, or removal, and make a claim for a refund of the registration fee. The bill strikes the requirement that the owner return the aircraft’s certificate of registration to the DOT within 30 days, and instead requires the owner to provide notice to the DOT within 30 days.
Subcommittee: Landon, Thorup and Cohoon

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