Airline-tax bill OK'd

A Senate panel has a approved a bill that would change the way airlines are taxed.

Sen. Wayne Niederhauser, R-Sandy, sponsor of SB237, told the Senate Revenue and Taxation Committee that the measure is meant to "create a more favorable tax situation for airlines here, especially those involved in a hub situation."

The fiscal note wasn't available but it could create a $3 million to $6 million tax shift in several counties, he said.

A key provision in the bill changes the property tax on aircraft from 95 percent based on ground time, to half based on ground time and half based on flight time.

Tax attorney Gary Thorup said the property tax provision means that only half the weight would be given to time "aircraft are physically present in the state of Utah." The other half would be based on "transporting persons and property between point A and point B."

The bill also makes changes to sales and income tax. The net result, Niederhauser said, would be "more incentives to airlines that want to have a hub here."

SB237 now moves to the full Senate for further consideration.