VAI opposes proposed luxury tax on aircraft in Washington state On Apr. 27, the Washington State Legislature passed S.B.5801, which would impose an additional 10% tax on the portion of any noncommercial aircraft sale, lease, or transfer exceeding $500,000, effective Jan. 1, 2026. The revenue would be directed to the Move Ahead WA Flexible Account, which is used for transportation projects in the state. The bill has been sent to Gov. Bob Ferguson (D), who has 20 days to sign or veto it. VAI and industry partners oppose this bill. Labeling aircraft as “luxury” based solely on value disregards their critical use in emergency response, medical transport, and economic activity across diverse communities. This tax could increase costs, reduce access to aviation services, and drive aircraft purchases to nearby states such as Oregon and Idaho. VAI has joined multiple associations in submitting two coalition letters urging the governor to veto S.B.5801. Washington residents who wish to oppose the bill or learn more about its impact are encouraged to contact Katia Veraza, VAI assistant director of government affairs and regional relations, at Katiav@verticalavi.org.
