Small Unmanned Aircraft Systems Registration Changes

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 Aug. 1, 2021. Registration of sUAS used for anything other than recreational purposes is now $25.

New sUAS registrations applied for on or after Aug. 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 Aug. 1, 2021 and penalties still apply for late registration tax payments that were due prior to Aug. 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. Furthermore, 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 Aug. 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, which contains money appropriated to it, or directed to be paid into it, by the legislature including these 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 accomplish the following:

• Acquiring, constructing, improving, maintaining, and operating airports and other air navigation facilities;

• Assisting municipalities in the acquisition, construction, improvement and maintenance of airports and other air navigation facilities;

• Assisting municipalities in initiating and enhancing market-scheduled air service at airports;

• Promoting interest and safety in aeronautics through education and information;

• Paying 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. Please visit mndot.gov/aero/aircraftregistration/.