WA Aircraft Luxury Tax Repeal Awaits Governor’s Signature

Back NATA News / March 17, 2026

On March 12, the Washington state legislature approved a repeal of the ten percent luxury tax on noncommercial aircraft that is slated to take effect on April 1, 2026. HB 2711 awaits action from Governor Bob Ferguson, who has 20 days to sign or veto the legislation. As part of a larger transportation package, the provision would eliminate the aircraft luxury tax completely while adjusting aircraft registration fees and increasing the state aviation fuel tax by 7 cents per gallon. The legislation would also establish a new sustainable aviation fuel airport infrastructure account to receive 28% of aviation fuel taxes, with the remaining 72% deposited in the state aeronautics account. The bill similarly directs a portion of aircraft registration fees to the state’s existing sustainable aviation fuel account. If Governor Ferguson takes no action in the 20-day window, the bill will become law.