Washington Governor Repeals Aircraft Luxury Tax Before Implementation

Olympia, Washington — Washington Governor Bob Ferguson signed legislation March 31, 2026, repealing a 10% luxury tax on aircraft valued over $500,000 just one day before its scheduled April 1 implementation. The original levy, enacted in May 2025, was intended to fund sustainable aviation fuel production but faced significant opposition from the general aviation community over potential economic impacts.

The repealed measure has been replaced by House Bill 2711, which implements increased aviation fuel taxes and adjusted registration fees effective June 11, 2026. Aviation advocacy groups, including the Pacific Northwest Business Aviation Association, welcomed the repeal as necessary for preserving local jobs and investment within the state's aviation sector.

The last-minute policy reversal highlights the ongoing tension between environmental funding initiatives and general aviation industry concerns about tax burdens that could drive aircraft owners to relocate to neighboring states.