This article is based on an official press release from the National Business Aviation Association (NBAA) and legislative data regarding Washington State Senate Bill 5801.

Business Aviation Coalition Mobilizes to Amend Washington State Aircraft Tax

The National Business Aviation Association (NBAA) has joined forces with the Pacific Northwest Business Aviation Association (PNBAA) to address significant concerns regarding Washington State Senate Bill 5801. The legislation, which was signed into law in May 2025, introduces a new 10% excise tax on specific aircraft transactions. While the tax is described by proponents as a levy on “luxury” items, industry leaders argue it poses a severe threat to essential business aviation businesses, flight training operations, and the state’s broader economic landscape.

According to the NBAA, the coalition was formed to unify the industry’s voice and advocate for legislative adjustments before the tax takes effect. Although the bill was signed by Governor Bob Ferguson earlier this year, implementation has been delayed until April 1, 2026. This window provides a critical opportunity for stakeholders to work with lawmakers on a “fix” bill during the upcoming 2026 legislative session.

The Controversy Surrounding Senate Bill 5801

Senate Bill 5801 was sponsored by State Senator Marko Liias as part of a broader transportation revenue package. The law imposes a 10% tax on the sale, lease, or transfer of “noncommercial aircraft,” specifically applying to the portion of the value exceeding $500,000. The revenue generated is earmarked for a Sustainable Aviation Fuel (SAF) Account, intended to fund infrastructure and research for greener aviation technologies.

However, the aviation industry has raised alarms regarding the bill’s language. Legal experts and coalition members note that the definition of “noncommercial” is ambiguous. This lack of clarity could unintentionally capture a wide range of aircraft that are not used for leisure, including those utilized for flight instruction, emergency medical transport, and wildland firefighting support.

The coalition argues the tax is based on a misunderstanding of the industry, mislabels essential business tools as “luxury” items, and threatens to drive aviation businesses out of the state.

The NBAA and PNBAA contend that labeling these assets as “luxury” items ignores their function as productivity tools. Consequently, the tax could disproportionately harm small-to-medium enterprises and maintenance shops that operate on thin margins, potentially forcing them to relocate to tax-friendly neighboring states such as Oregon and Idaho.

Industry Mobilization and Economic Stakes

To address these challenges, the coalition convened a major stakeholder meeting on November 21, 2025, at Paine Field (PAE) in Everett, Washington. Hosted by the PNBAA at the Fortive hangar, the event drew approximately 100 industry representatives. Key attendees included NBAA Western Regional Director Phil Derner, State Representative Tom Dent (Leader of the State Aviation Caucus), and representatives for Senator Liias.

The meeting focused on establishing a collaborative dialogue with lawmakers to correct misconceptions about business aviation. To underscore the sector’s importance, the coalition cited data from a 2020 economic impact study by the WSDOT Aviation Division. The figures highlight the massive footprint of aviation in Washington:

• Employment: The sector supports approximately 407,000 jobs.
• Economic Activity: It generates roughly $107 billion in total economic impact.
• Labor Income: The industry contributes over $26 billion in wages.
• Infrastructure: The state relies on 134 public-use airports as economic hubs.

AirPro News Analysis

The situation in Washington State reflects a growing tension between environmental policy goals and economic retention in the aviation sector. While the creation of a Sustainable Aviation Fuel (SAF) Account demonstrates a forward-looking commitment to decarbonization, a goal shared by the industry’s “Net-Zero by 2050” commitment, the funding mechanism appears to have been crafted without sufficient technical input. The delay in implementation until April 2026 suggests that lawmakers recognize the potential for “unintended consequences,” particularly regarding the ambiguous classification of commercial versus noncommercial operations. The success of the upcoming “fix” bill will likely depend on whether the industry can effectively demonstrate that penalizing business aviation assets undermines the very infrastructure needed to deploy sustainable technologies.

Future Outlook: The 2026 Legislative Session

The immediate focus for the NBAA-led coalition is the 2026 legislative session, which begins in January. Lawmakers have acknowledged the issues within the current text of SB 5801, and a corrective bill is expected to be introduced. The objective is to clarify definitions and potentially modify the tax structure to exempt essential services and flight training operations.

Between now and the April 1, 2026 effective date, the coalition plans to continue lobbying efforts to ensure that the final version of the law protects the state’s aviation ecosystem while still supporting reasonable sustainability objectives.

Sources:

• NBAA Press Release
• Washington State Legislature (SB 5801 Records)
• WSDOT Aviation Division Economic Impact Study