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Business aviation advocates will meet in person next week at Paine Field (PAE) in Everett, Washington, for an initial discussion about its luxury tax coalition. The meeting is in response to the state's new 10% luxury tax on high-value aircraft.
The Pacific Northwest Business Aviation Association (PNBAA) is hosting the meeting from 9 to 10 a.m. on Nov. 21 at the Fortive hangar. It is being organized with the support of NBAA.
PNBAA says the tax has already prompted a "shocking" amount of existing Washington aircraft to leave the state.
The state legislature approved the 10% tax on aircraft in May. It applies to aircraft valued at more than $500,000 at the time of purchase or lease. It also applies to aircraft brought into the state by taxpayers and non-residents alike if the aircraft spends at least 90 days there.
Aviation groups had urged lawmakers to remove the tax from Senate Bill 5801, then urged Gov. Bob Ferguson to line-item veto it.
RELATED ARTICLE:Aviation groups urge Washington state governor to veto BizAv aircraft taxA letter to the governor said in part: "This highlights how deeply integrated aviation is in Washington's economic and workforce fabric and how much the state stands to lose if the proposed 'luxury aircraft tax' is adopted.
"General and business aviation are essential to Washington's economy, public safety, healthcare access, agricultural success and community connectivity. We urge you to protect these vital activities and ensure our aviation system remains strong by vetoing these harmful provisions."
PNBAA leaders say the tax has already led to unintended consequences, including existing Washington-based aircraft relocating to other states and buyers choosing to base new aircraft elsewhere.
The changes are affecting manufacturers, charter operators, maintenance providers and other businesses that rely on aircraft operations in the state, according to the association.
The Nov. 21 meeting will open with an overview of the luxury tax and a Qandamp;A session by aviation tax expert Alan Burnett, director of legislative affairs for the PNBAA and managing partner of Centerpoint Aviation Law.
A panel discussion will follow on what the organization has done so far, what is being done now, and the goals for the future to further the efforts of eliminating or mitigating the effects of the tax. Attendees will also hear from Washington state Rep. Tom Dent, a longtime supporter of aviation issues.
The PNBAA has retained lobbyist Mike Ennis to represent the coalition's interests in the state capitol and is working with a growing group of interested parties that want to help in its fight. Organizers say progress has been made, but there is still work to be done.
The PNBAA is urging aircraft owners, operators, and related businesses to get involved. To support the advocacy efforts, the association is asking for donations to the PNBAA Legislative and Advocacy Fund. They can be made by check to the PNBAA, mailed to PO Box 80765, Seattle, WA 98101-1022, or by requesting electronic payment information via email.
Organizers are also asking attendees of the aircraft luxury tax coalition meeting to RSVP by Nov. 19. You can register by clicking here or by emailing
[email protected].