WA Governor Signs Aircraft Luxury Tax Repeal

Back NATA News / April 7, 2026

Last week, Washington State Governor Bob Ferguson finalized legislation to repeal a ten percent luxury tax on noncommercial aircraft that was slated to take effect on April 1, 2026. As part of a larger transportation package, the provision eliminated the aircraft luxury tax completely while adjusting aircraft registration fees and increasing the state aviation fuel tax by 7 cents per gallon. The legislation also established a new sustainable aviation fuel airport infrastructure account to receive 28% of aviation fuel taxes, directing the remaining 72% to the state aeronautics account. The bill similarly directed a portion of aircraft registration fees to the state’s existing sustainable aviation fuel account. NATA supported actions by the Washington state legislature and governor to implement a workable solution that reflected industry input and mitigated negative operational impacts.