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Washington State Nears ‘Luxury’ Tax on Aircraft

Several industry and nonprofit groups are urging Governor Bob Ferguson to veto the proposal.

An airplane in a hangar.
A small private aircraft in a hangar. [Shutterstock]
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Key Takeaways:

  • Washington State's Senate has approved a budget proposal (SB 5801) that includes a 10% tax on the sale of noncommercial aircraft, motor homes, and boats valued over $500,000, intended to fund transportation infrastructure.
  • A coalition of aviation industry groups and nonprofits is strongly opposing the tax, arguing it would harm essential services (like patient transport and agricultural operations) and businesses, negatively impacting the state's economy, transportation, and public safety.
  • Opponents assert the tax would broadly affect various aviation users beyond "luxury assets," while Governor Bob Ferguson has expressed general discomfort with the high level of new taxes proposed in the overall budget.
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Washington State could soon adopt a spending plan imposing a 10 percent tax on the sale of noncommercial aircraft worth over $500,000.

The state Senate last month signed off on the new fee as part of a broader budget proposal known as SB 5801. Backers say the tax is needed to support transportation infrastructure like roads and ferries.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.

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