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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 is proposing a 10% tax on the sale of noncommercial aircraft, motor homes, and boats valued over $500,000, with proceeds intended to support transportation infrastructure.
  • A coalition of aviation industry groups and nonprofits strongly opposes this tax, arguing it would negatively impact essential services like patient transport and wildfire response, as well as businesses and agricultural operators.
  • Opponents have urged Governor Bob Ferguson to veto these sections of the bill, while Ferguson has generally expressed discomfort with the overall level of taxes in the state's proposed budget plans.
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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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