Washington State Lawmakers Move to Repeal Unpopular Private Jet Tax

The tax, approved last spring, faces bipartisan opposition and is likely to be rolled back before its scheduled April 1 implementation.

Published on Feb. 26, 2026

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The Democratically-controlled Washington Legislature is moving to repeal a new 10% luxury tax on the sale, lease or transfer of private aircraft valued at more than $500,000. The tax, which was expected to raise $4-5 million annually for green aviation fuel research, has faced intense opposition from aircraft owners, associations and related businesses who argue it would damage the state's economy and lead to job losses as companies relocate aircraft to neighboring states. Lawmakers, including the original sponsor of the tax, now say the "unintended consequences" of the policy are "compelling" enough to warrant a repeal.

Why it matters

The proposed repeal of the private jet tax highlights the challenges lawmakers can face when trying to implement new taxes, even on high-income earners. The backlash from the aviation industry, which argued the tax would hurt businesses and cost jobs, appears to have been strong enough to force a course correction from the legislature just days before the tax was set to take effect.

The details

The luxury tax, approved by the legislature last spring, would have levied a 10% surtax on the sale, lease or transfer of private aircraft valued at more than $500,000. It was intended to raise funds for green aviation fuel research and production, but faced intense opposition from aircraft owners, associations and related businesses. They argued the tax would damage the state's economy and lead to job losses as companies relocated aircraft to neighboring states to avoid the new levy.

  • The tax was scheduled to take effect on April 1, 2026.
  • The current legislative session in Washington is scheduled to end on March 12, 2026.

The players

Marko Liias

A Democratic state senator who sponsored the original luxury tax on private aircraft, but is now leading the effort to repeal it.

Tom Dent

A Republican state representative who is piloting a parallel effort in the state House to fully repeal the luxury aircraft tax without any offsetting increases elsewhere.

Schweitzer Engineering Laboratories

A Pullman, Washington-based company with 8,000 employees worldwide that has already relocated part of its corporate jet operation across the state line into Idaho to protect its bottom line from the proposed tax.

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What’s next

The Senate version of the aircraft luxury tax repeal is scheduled for an initial committee vote on Friday, while the House version is set for its first vote on Wednesday afternoon. Lawmakers will need to reconcile any differences between the two bills before the end of the legislative session on March 12.

The takeaway

The proposed repeal of the private jet tax in Washington highlights the challenges lawmakers can face when trying to implement new taxes, even on high-income earners. The strong opposition from the aviation industry, which argued the tax would hurt businesses and cost jobs, appears to have been enough to force a course correction from the legislature just days before the tax was set to take effect.