Washington’s New Aircraft Tax Sparks Regional Coalition Response

The National Business Aviation Association (NBAA) is stepping up its advocacy efforts in the Pacific Northwest, announcing Monday that it has brought together a new industry coalition to address the recent legislative action in Washington state that looks to levy a 10 percent tax on the sale, lease, or transfer of noncommercial aircraft valued at over $500,000.

In a news release on Monday, the association said that the new coalition is made up of state and national NBAA members, the Pacific Northwest Business Aviation Association, allied national associations, as well as local businesses and representatives across the aviation industry. The group’s stated mission for now is to provide a consolidated industry response to SB 5801, which was signed into law by Governor Bob Ferguson in May.

While the bill was awaiting the governor’s signature after passing through the state legislature in April, industry leaders—many of whom are also a part of the newly established coalition—sent a letter addressed to Ferguson’s office urging him to line-item veto the provisions in the bill related to the luxury tax. They argue it would have “sweeping and unintended consequences” for local healthcare, transportation, and agricultural organizations that regularly utilize high-valued aircraft for essential operations.  

The groups said the state’s general and business aviation sectors support more than 31,000 jobs and generate $8.6 billion, in addition to 407,000 airport jobs, all of which would experience diminishing returns due to the tax.

“General and business aviation are essential to Washington’s economy, public safety, healthcare access, agricultural success, and community connectivity,” the groups said in the letter to Ferguson. “We urge you to protect these vital activities and ensure our aviation system remains strong by vetoing these harmful provisions.”

The law establishes that all revenue collected by the luxury tax on high-value aircraft will be deposited in a sustainable aviation fuel account. The NBAA stated that the tax, scheduled to go into effect on April 1, 2026, has some businesses considering whether it will be possible to remain economically viable if they are to continue operations in Washington state under the new law. 

Part of the impetus, the association said, for bringing together aviation groups was because the passage of the legislation was done so with little input from the industry. So it said there remained a need for a unified voice among the larger aviation community—a void that the new group hopes to fill. 

“This coalition is intent on communicating that commitment, while also dispelling misconceptions and highlighting aviation’s positive contributions to environmental progress,” said NBAA regional director Phil Derner. “We are here to build a constructive relationship that incentivizes and empowers our industry to be a better participant in sustainability and a better neighbor in communities throughout the state, not just in the big cities.”

Nearly 100 industry and community representatives gathered recently at Paine Field (KPAE) in Everett, Washington, outside Seattle to hear from state Representative Tom Dent, leader of the state’s aviation caucus and discuss needs moving forward. 

“By resetting the business aviation community’s relationship, we intend to keep legislators and the public better informed on our industry’s commitment to Washington state, its economy, and its environment,” Derner said.