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:

A coalition of aviation industry groups is opposing a new Washington state law levying a 10% luxury tax on noncommercial aircraft valued over $500,000, with proceeds intended for sustainable aviation fuel.
The industry argues the tax is "burdensome" and based on a misunderstanding of high-value aircraft, warning it will negatively impact the state's economy, jobs, and essential services like medical transport and disaster relief.
Despite opposing the tax, the groups emphasize their strong commitment to sustainability goals, including achieving net-zero emissions by 2050, and aim to proactively engage with policymakers to find collaborative solutions.

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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.