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 tax on the sale, lease, or transfer of noncommercial aircraft valued over $500,000, with proceeds directed to the state's Sustainable Aviation Fuel Account.
A coalition of aviation industry groups, including NBAA, NATA, and GAMA, has formed to actively oppose this "luxury tax," arguing it's based on a "grossly uninformed understanding" of aircraft use.
The industry groups contend that the tax will negatively impact not only business aviation but also critical services like medical transport, firefighting, and agricultural operations, as well as the broader state economy, despite their strong commitment to sustainability and net-zero emissions 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.