South Dakota Senate Bill SB209

South Dakota 2025 Regular Session

• Introduced: 2/5/25
• Refer: 2/6/25

Caption

Modify aircraft registration fees and to provide a penalty therefor.

Summary

SB209 revises South Dakota’s aircraft registration fee structure. The bill increases the annual registration fees for aircraft across all weight classes, with the largest increases affecting heavier aircraft. It also keeps the existing rule that failure to pay aircraft registration fees is a Class 2 misdemeanor. The bill also changes how registration taxes are handled for leased aircraft. For leases of 36 months or less, the original registration tax would continue to apply to scheduled lease payments, excluding certain operating costs, and be paid by the lessee as payments are made. For longer leases or multiple short-term agreements that function as a long-term lease, the tax would instead be based on the aircraft’s market value, and the owner would be responsible for paying it. The bill requires a copy of the lease agreement to be filed with the department and preserves crediting of taxes already paid if the lessee later buys the aircraft.

Impact

SB209 would amend several provisions in South Dakota’s aircraft registration statutes, increasing fee amounts in § 50-11-12 and changing the tax treatment of leased aircraft in § 50-11-35. It would also repeal § 50-11-14, which currently provides a 50% fee reduction for aircraft at least ten years old, and § 50-11-17, which sets a $10 minimum registration fee. The practical effect is to raise registration costs for many aircraft owners and eliminate two existing fee-reduction provisions, while clarifying how taxes are assessed and paid for leased aircraft.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears revenue-oriented and administrative, with a focus on updating fee schedules and clarifying tax liability rather than creating a new regulatory program. The absence of recorded discussion makes the overall sentiment indeterminate from the supplied context.

Contention

The most likely points of contention are the fee increases and the repeal of the age-based discount, which would raise costs for aircraft owners, especially those with older aircraft. Another potential issue is the shift in leased-aircraft tax responsibility and valuation method, which could affect lessors, lessees, and aircraft financing arrangements. The bill’s increased penalties for nonpayment may also draw concern from affected owners and operators, though no specific objections were recorded in the provided context.