NBAA Forms Coalition to Fight Washington’s Aircraft Luxury Tax

Groups argue that a recently passed bill will have ‘sweeping, unintended consequences’ for the state’s economy.

Jack Daleo

Monday, December 08, 2025 at 01:42 PM ET

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Edited By:

Travis Tingle

Costly, noncommercial aircraft, such as this Beechcraft King Air C90A, face a 10 percent tax on sale, lease, and transfer in Washington state. [Credit: NBAA]

Key Takeaways:

Washington state has implemented a 10 percent "luxury tax" on noncommercial aircraft valued over $500,000, with proceeds designated for the state’s Sustainable Aviation Fuel Account.
A coalition of major aviation industry groups, led by the National Business Aviation Association (NBAA), is actively opposing this tax, deeming it "burdensome" and based on a "grossly uninformed understanding" of aircraft utility.
The coalition argues that many high-value aircraft serve essential purposes (e.g., medical transport, disaster relief, agriculture), not just luxury, and the tax could have severe negative impacts on the state's economy, jobs, and overall aviation industry, despite the industry's strong existing commitment to sustainability goals.

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Aviation industry groups are uniting to fight legislation in Washington state that they argue is based on a “grossly uninformed understanding” of high-value aircraft.

That was the language used by the National Business Aviation Association (NBAA), National Air Transportation Association (NATA), General Aviation Manufacturers Association (GAMA), Vertical Aviation International (VAI), Corporate Angel Network (CAN), and Angel Flight West in an April letter to Washington Governor Bob Ferguson.