Lawmakers in Washington have voted to repeal a planned 10% luxury tax on private aircraft sales, just weeks before it was due to come into force.
The tax, introduced last year and scheduled to begin on 1 April 2026, would have applied to aircraft transactions valued above $500,000 (£395,000).
However, under House Bill 2711 (HB 2711), approved on 12 March, the measure will now be scrapped.
The bill will become law once signed by Governor Bob Ferguson, or automatically within 20 days of legislative approval, according to the National Air Transportation Association.
Instead, the legislation introduces a series of changes to aviation funding in the state. Fuel taxes will rise by seven cents per gallon, bringing the total to 25 cents, while aircraft registration fees will increase and be subject to an automatic annual rise of 2%.
A portion of the additional revenue will be directed towards environmental initiatives. The National Air Transportation Association said 28% of aviation fuel tax income will be allocated to a new sustainable aviation fuel (SAF) airport infrastructure fund, with the remainder going into the state’s aeronautics account.
A similar share of aircraft registration fees will also be channelled into the SAF fund.
The changes come after criticism from parts of the aviation industry, which argued the proposed luxury tax could have deterred aircraft sales and investment in the state.