Luxury Aircraft Tax Had Targeted Sale Or Lease Of Private Aircraft Valued Over $500,000 Washington state legislators are trying to make a course correction after admitting they made a mistake by passing a 10% luxury tax on private aircraft in 2025. The original sponsor of the legislation is now leading the charge to repeal the law, saying there were unintended consequences to the legislation.The Washington State Department of Revenue said the tax legislation was designed to raise a projected $4 million to $5 million annually, but legislators discovered the tax might actually reduce state revenue by driving away high-paying maintenance jobs, fuel sales, and hangar leases.
