Finance, Taxes, Insurance
Governor Signs Washington State Luxury Tax Repeal
Replacement bill includes a rise in fuel taxes of 7 cents per gallon
Washington state Governor Bob Ferguson signed the luxury tax repeal
Washington state Governor Bob Ferguson signed the aircraft luxury tax repeal on March 31, 2026, canceling the provisions of the 2025 bill that would have mandated a 10% tax on aircraft purchases valued at more than $500,000. © TVW screenshot

Yesterday, Washington Gov. Bob Ferguson signed HB 2711, the repeal of the 10% luxury tax on general and business aviation aircraft that had been approved last April and set to take effect today. The tax would have applied to new and preowned aircraft purchases valued at more than $500,000 and also would have imposed use taxes on operators of aircraft so valued.

As the repealed bill SB 5801 was intended to provide funding for transportation programs, the replacement bill includes an increase in aviation fuel taxes, to 25 cents from 18 cents per gallon, and a higher aircraft registration fee, which will climb automatically by 2% per year.

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