On Tuesday, Washington state Governor Bob Ferguson (D) signed Bill 5801 that includes a 10% “luxury” tax on the sale of so-called “noncommercial” aircraft that exceed $500,000 in purchase price. A similar tax also applies “for the privilege of using within the state as a consumer any noncommercial aircraft if its value exceeds $500,000.” The taxes are slated to go into effect with newly completed transactions starting April 1, 2026.
Although the term “noncommercial aircraft” is meant to apply to those flown in general and business aviation operations, according to the state’s own definition of “commercial,” there are no such aircraft as “noncommercial.” The state defines the word “commercial” as an “airplane certified by the FAA for transporting persons or property.” Therefore, under this definition, the bill doesn’t cover any aircraft or operators.
Aaron Wasserman, spokesman for the state lawmakers responsible for the bill, told AIN, “Our transportation policy person tells me there will be a bill next year to fix any unintended consequences, which is why there’s a delayed effective date. The legislators know there needs to be some work clarifying ‘noncommercial’ and making sure the taxes reflect their intent. The bill next year will clear up that ambiguity.”
In any case, once taxes are collected, Wasserman said they will be deposited into aviation-related accounts, including the state’s newly created sustainable aviation fuel account. “Revenues in that account may only be used for activities that support research development, environmental review, and infrastructure related to the production of sustainable aviation fuel.”
"We are saddened by the passage of these taxes, which will place undue burden on mechanics, service workers, agricultural pilots, and businesses that rely on general aviation," said Richard Beckert, president of the Washington Pilots Association (WPA). "We fear these taxes will lead to economic hardship and the potential loss of essential services in many areas of our state.
"The WPA will continue to work with the Seaplane Pilots Association and other industry stakeholders to address the challenges created by ESSB 5801. We remain committed to advocating for the interests of general aviation and ensuring its vital role in Washington's economy and transportation infrastructure."