OLYMPIA – A proposal aimed at halting a new tax on high-value aircraft was the focus of a public hearing Thursday before the Washington State House Transportation Committee.
The committee heard testimony on House Bill 2347, sponsored by Rep. Tom Dent, R-Moses Lake, which seeks to stop the implementation of a so-called “luxury” aircraft tax scheduled to take effect April 1, 2026. Under current law, a 10% sales and use tax would be imposed on the sale or lease of non-commercial aircraft valued above $500,000.
Testimony presented during the hearing raised concerns about how the tax could affect Washington’s aviation industry, workforce, and broader economy.
“The hearing made it clear this tax is already changing behavior and putting Washington at a competitive disadvantage,” Dent said. “Aircraft owners and aviation businesses testified that purchases are being delayed, redirected, or moved out of state. Once that business leaves Washington, it’s extremely difficult to bring it back.”
According to testimony, economic impacts linked to the proposed tax include aircraft buyers choosing to purchase, register, or base aircraft in other states to avoid the tax; lost sales for Washington-based aircraft dealers, maintenance shops, and service providers; and reduced aviation-related employment. Witnesses noted the effects could be especially pronounced in rural areas, where aviation plays a key role in agriculture, emergency services, and small businesses.
Dent told the committee that general and business aviation supports thousands of jobs and generates billions of dollars in economic activity across the state. He warned that even a modest decline in aircraft sales or operations could have far-reaching consequences for supply chains, airports, and local economies.
“This tax was intended to raise revenue, but the testimony shared showed it may do the opposite,” Dent said. “If aircraft are purchased elsewhere or relocated, Washington loses not only the tax revenue, but also the jobs, fuel sales, maintenance work, and long-term investment that come with them.”
House Bill 2347 would repeal the luxury aircraft tax in its entirety, preventing it from taking effect. Dent described the move as a way to avoid “unintended but very real economic harm” to the state’s aviation sector.
The bill includes an emergency clause and would take effect immediately if approved by the Legislature.
