Washington state has repealed a tax on certain general aviation aircraft before it could take effect, replacing the measure with an increase in the state’s aviation fuel tax and higher aircraft registration fees. The original law was enacted in 2025 and was scheduled to begin on April 1, 2026. It called for a 10% tax on the purchase of new and existing aircraft valued at more than $500,000.
A new bill signed March 31 by Gov. Bob Ferguson supersedes that measure. NBAA Regional Director Phil Derner said in an association release that the repeal “is a win for job creation, local investment and economic opportunity,” adding that the replacement measure reflected input from multiple stakeholders.
The aircraft tax had drawn opposition while it was still under consideration in 2025. In an April 8, 2025, article, AOPA said the Washington Senate had approved legislation that would apply a 10% tax to noncommercial aircraft sales or leases above $500,000, while the measure had yet to complete the legislative process. AOPA said the proposal could affect aircraft demand, manufacturers and registrations in the state.
AOPA Alaska and Northwest Mountain Regional Manager Brad Schuster said in the group’s report at the time that the idea aircraft are simply a luxury item reflected “a grossly uninformed understanding of how noncommercial aircraft contribute to our society.”
The issue remained part of a broader transportation funding debate in Olympia this year. A March 6 Bellevue Chamber transportation committee recap said the aircraft tax was still scheduled to begin April 1 unless lawmakers acted, with the House and Senate considering different approaches to repeal and replacement.
NBAA said the final change replaces the aircraft tax with a 7-cent-per-gallon increase in the state’s aviation fuel tax and a moderate increase in aircraft registration fees.
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