Senate adopts transportation bill that replaces luxury aircraft tax with fuel and fee increases

The Washington State Senate voted to pass Engrossed Substitute House Bill 2711, a transportation revenue and policy bill that includes changes to aircraft taxation and other adjustments, after adopting a narrower striking amendment on the floor.

Senator Elias (chair) described the narrower striking amendment as the result of negotiations with the bill sponsor and industry stakeholders. "The most significant of those being the repeal of the luxury aircraft tax ... and the replacement of that same tax by an increase in our state's aircraft fuel tax and an increase in aircraft registration fees and an excise tax that's paid annually as well," Elias said, summarizing the policy tradeoffs embodied in amendment No. 0954.

Senator King and others urged support, emphasizing that the bill represents a negotiated, workable approach. Senator Wagner said the change reverses a prior policy that led some aircraft owners to leave the state; he supported the bill reluctantly but said it was preferable to the earlier approach. By contrast, Senator Dozier rose in opposition and warned that the new fees and fuel increases would be onerous for owners of small general-aviation aircraft: "The fees that are going up are astronomical ... What we're doing right now, we're gonna kill general aviation by making it too expensive to even own a little bush airplane," Dozier said.

After adoption of the striking amendment, the Senate advanced the bill to final passage. The secretary called the roll for final passage and the presiding officer announced the result as 33 ayes, 15 nays and 1 excused; the bill was declared passed as amended and the title will be the title of the act.

The legislation includes policy clarifications for transportation implementation and dedicates aircraft taxes to a sustainable aviation fuel account, according to floor remarks. Supporters framed the changes as a way to sustain transportation revenue while investing in sustainable aviation fuel; opponents raised concerns about impacts on small aircraft owners and general aviation.