On Tuesday, Washington state Governor Bob Ferguson (D) signed Bill 5801 that includes a 10% “luxury” tax on the sale of so-called “noncommercial” aircraft that exceed $500,000 in purchase price. A similar tax also applies “for the privilege of using within the state as a consumer any noncommercial aircraft if its value exceeds $500,000.” The taxes are slated to go into effect with newly completed transactions starting April 1, 2026.
Although the term “noncommercial aircraft” is meant to apply to those flown in general and business aviation operations, according to the state’s own definition of “commercial,” there are no such aircraft as “noncommercial.” The state defines the word “commercial” as an “airplane certified by the FAA for transporting persons or property.” Therefore, under this definition, the bill doesn’t cover any aircraft or operators.
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