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Wed, May 07, 2025

NBAA Opposes New ‘Luxury Aircraft Tax’

Bill Would Place a 10% Tax on Aircraft Valued at Over $500K

The National Business Aviation Association (NBAA) is making its voice heard, urging the Washington Governor to throw out a potential new tax on ‘luxury recreational vehicles.’ This applies to not only motor homes and boats, but also non-commercial aircraft valued above $500,000.

“General and business aviation are essential to Washington’s economy, public safety, healthcare access, agricultural success, and community connectivity,” the NBAA letter stated. “We stand ready to work with you and your team on sustainable solutions that support Washington’s economic and environmental goals without jeopardizing critical aviation operations.”

On top of the luxury aircraft fee, Washington Senate Bill 5801 introduces several ‘funding mechanisms and regulatory changes’ to bolster the state's transportation system. It has already received the green light from the Washington legislature and was delivered to the state’s governor, Bob Ferguson, on April 27. Now, all it needs is his signature to move forward.

The NBAA is looking to keep this from happening. The organization put out an online alert to members and worked with five other groups to write an urgent letter to Ferguson, asking that he strike the luxury aircraft tax from SB 5801 before allowing it to pass.

“While we recognize the budget challenges facing the state, this provision would have sweeping, unintended consequences for Washington’s economy, transportation network, and public safety and healthcare services,” the letter explained.

The six organizations also pointed out how harmful the tax would be to the state’s flight training, emergency medical transport, agricultural, and maintenance operators. These types of general and business aviation services directly support more than 31,000 jobs and generate $8.6 billion for the economy in Washington alone.

FMI: www.nbaa.org

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